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Back HomeAmericans focus on Spain: home purchases break record
“ Americans Are Buying Homes in Spain More Than Ever Before ”. This is how The Wall Street Journal titled a article on the barrage of operations real estate that is starring US citizens in Spain. A barrage that, as the newspaper well commented, is breaking all records.
According to the General Council of Notaries, During the first half of 2022 alone, Americans bought 1,162 homes in Spain, 75.5% more that in the first half of 2021, signing not only the sixth highest growth by nationality, but the largest volume of operations in the entire historical series. Also, they are the ones who pay the higher prices per m2, only surpassed by buyers from Denmark.
The momentum has gained strength over the years. Since 2019, without going any further, purchases have shot up practically 90%, both permanent and vacation homes, and the trend for the moment shows no signs of slowing down.
At least, that’s what the data of the Property Registrars hints at. According to the Real Estate Yearbook of last year, during 2022 the weight of home purchases by US citizens has increased at 0.29 percentage points, to represent 1.19% of the operations carried out by foreigners in the year and 0.16% of total transactions in Spain.
Real estate agencies also highlight that there has been an acceleration in demand in the luxury market in recent times. This confirms it Albert Milián, spokesperson for Sotheby’s International Realty Barcelona and Costa Brava, which explains to idealist / news that “ is currently the star customer in the high house ‘ standing ’ in Barcelona, although it is true that Sotheby’s International Realty enjoys great prestige in the USA. This has allowed him to be a recurring customer throughout these years, but since 2021 we have noticed an explosion in demand and in 2022 this client has represented in Barcelona just over 30% of our operations ”.
Quality of life and a strong dollar, among the factors
¿And what is the reason for this recent pull of interest in housing in Spain among Americans? Experts say behind the upward trend there is structural factors, such as climate, culture, gastronomy or low property prices with respect to those registered in the main cities of the first world economy, and others more conjunctural, like the exchange rate between the dollar and the euro or the war in Ukraine.
Felice Tufano, Vice President of FIABCI Spain and President of FIABCI Europe, details that in recent years “ there has been an increase in the sale of properties by US citizens in Spain. Among the reasons that explain this phenomenon is the tourist and cultural attraction of Spain, as well as its warm climate and quality of life. Furthermore, the price € / m2 of cities such as Barcelona, Madrid or Marbella are still much more affordable when compared to other cities in the world and, in particular, with cities in the United States such as New York, San Francisco or Los Angeles ”.
According to the last ranking prepared by The Economist-EIU, These three cities were among the 10 most expensive to live in the world in 2022, after analyzing more than 400 prices of products and services in a total of 172 cities. In addition, the price of luxury housing in San Francisco and Los Angeles more than doubles that registered in Madrid or Barcelona, while it is more than three times higher in the case of New York, according to data from the real estate consultancy Savills.
On the other hand, adds Tufano, “many Americans see Spain as an investment opportunity, since the Spanish real estate market has recovered and remains stable in recent years after the 2008 financial crisis. Importantly, Americans are increasingly interested in buying luxury properties in Spain, where they usually spend more on properties in the most exclusive and high demand areas ”.
© Jackson Lieblein, LLC 2015.
