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Why Northern Europeans are the biggest new force in the Spanish housing market
Your guide to understanding the changing real estate trends in Spain, from Micasamo Realty
In 2008, with the global financial crash, the real estate market in Spain tanked. The Spanish call it simply ‘el crisis’ for the devastating knock-on effects it had on employment prospects for thousands of people and the country’s debt level.
Now, Spain has had 15 years to recover and a large part of its bouncing back has been due to the resurgence of foreign investment in the Spanish property market, especially on the part of buyers in Northern European nations like Germany, Poland and the Netherlands.
So what is the state of the Spanish housing sector now and what do foreigners buying or selling a home in Spain need to understand about investing in Spanish real estate?
From Brexit to Bavaria
In 2015, UK buyers accounted for nearly a quarter of all foreign property buyers in Spain. Fast forward to 2022, and that figure plummeted to less than 10%. What happened?
The short answer is Brexit, of course, with the United Kingdom’s decision to leave the European Union leading to a pound-to-euro exchange rate that was much more likely to experience fluctuations that precipitated a decline in British buyers in the Spanish market.
At the same time, there has been a noted shift in UK buyers primarily seeking either lower-priced resales to use as holiday rentals or properties worth more than 500,000 euros so they can take advantage of Spain’s Golden Visa program. As such, mid-range properties priced between 200,000 euros and 500,000 euros have become less attractive for British buyers.
Not only that, but the presence of buyers from Northern European countries has increased in the Spanish real estate market. German buyers, in particular, have surged, and now account for almost 9% of foreign buyers in Spain as of 2022. Buyers from Poland, Ukraine and the Netherlands are all increasing too, representing an important shift in the Spanish property market.
Why are Northern Europeans flocking to Spain?
There are several factors driving this surge in interest in the Spanish real estate market by Northern European buyers and renters, not least of which are the competitive property prices in places like the Costa Cálida and Costa Blanca in comparison with countries in Northern Europe.
Also, the cost of living in Spain is, on the whole, lower than these places, making it an attractive destination for retirees and those seeking a more affordable lifestyle. Finally, geopolitical events such as the conflict in Ukraine have prompted many to explore alternative options abroad.
How the Spanish real estate market has adapted to these changes
In response to these market changes, Micasamo Realty has taken proactive steps to cater to this growing market segment. For example, the company is growing its team with native German-, Polish- and Dutch-speaking members to assist clients from these countries better.
Micasamo General Manager, Darren Brown, said, “We can see where the market is going because we are in the thick of the action every day. Gone are the days of the UK buyer being number one, but it’s important to note that they are still significant players. Nevertheless, the new generation of buyers from Northern Europe, and increasingly from the USA and Canada, are the ones to watch. We must continue nurturing our UK buyers while recognising the competition.”
For help buying, renting and managing property in Spain, don’t hesitate to contact Micasamo Realty today:
