Foreign buyers are at it again as Scandinavians swoop in on Spain’s lucrative property market

06/17/2014 15:33

Foreign buyers are at it again as Scandinavians swoop in on Spain’s lucrative property market.

Freezing cold winters, stable economies, greatly improved flight routes and a love of the Spanish lifestyle – it is little wonder that Scandinavians are now one of the fastest growing groups of foreign buyers of Spanish property.

According to Knight Frank´s Global Property Search, online searches for properties in Spain increased by 29% over the first three months of 2014 compared with the same period in 2013. With more than a fifth of all Spanish residential sales – 55,187 transactions – made by foreign buyers.

For the first time in several years, demand is outstripping supply in the Spanish second home market, with more and more Scandinavian buyers in particular, looking for their ideal property in the sun.

“The interest from Scandinavian markets continues to boom as buyers take advantage of favourable exchange rates and reduced Spanish house prices to purchase their dream second home abroad. Scandinavians, particularly those from Sweden and Norway, now make up over a fifth of our buyers in Spain – a huge increase on previous years.”

Indeed, a real estate report, including a detailed analysis of the data made available from the Association of the Property Registries and the General Council of the Notary Offices, has confirmed strong growth in the percentage of home purchases by foreigners with respect to the total home purchases in Spain over the last 4 years. These figures showed that purchases reached 11.15% in 2013 (12.85% in the fourth quarter of 2013), a stark contrast to only 4.24% of sales as seen in 2009.

Furthermore, another significant fact shown in the report is that the group of the 10 principal countries purchasing homes in Spain (Britain, France, Russia, Belgium, Germany, Sweden, Norway, Italy, Algeria and China) has been very stable in the last few years suggesting recovery of the market.