Spain is becoming a very appealing property market for non-resident buyers, with Valencia Real Estate market leading the pack and experiencing a nearly 60% increase in sales to non-residents over the previous year.
According to preliminary data from the Ministry of Transport, Mobility, and Urban Agenda’s real estate transaction statistics, the purchase of property by non-resident foreigners in Spain increased by 43.9% year on year in 2022, to 63,050 transactions (Mitma). During the same time period transactions in the Valencia Real Estate Market increased by 57%.
These statistics show that Spain as a whole is quickly becoming a preferred destination not only for beachgoers, but also for people from all over the world looking to buy a second home or simply set their foot in Spain. Due to still very affordable prices, it looks like Valencia Real Estate leads this trend.
According to the study, the sales between Spaniards not residing in the country also grew by 2.21%, to 4,039 operations, but this figure had little impact on the overall trend.
Sales by foreigners residing in Spain also increased by 20.85% in 2022 , to 71,542 operations. This is a huge increase considering the fact that, at the same time, the sales to Spanish residents only increased by 1.76%, to 577,281 transactions.
The figures show that the Valencia Real Estate market is increasingly being driven by foreign demand and is becoming less dependent on the overall trends in the Spanish market. As a result, according to the most recent data, while rising interest rates reduced property values in the majority of Spanish provinces, the Valencia Real Estate market demonstrated resistance to the new trends and continued to grow in value.
When comparing overall figures, Valencian Community came out on top in both non-resident foreigner and resident foreigner sales. This top spot was previously held by Catalonia, the Balearic Islands, and Andalusia, but it appears that this is no longer the case. Valencia recorded 23,574 home sales to non-resident foreigners, 57.39% more than in 2021, and is followed by Andalusia, which recorded 16,063 sales, 33.5% more year on year.
Valencia Community also led in sales to resident foreigners in 2022, with 17,030 operations, a 28.76% increase over the previous year, followed by Catalonia, with 13,825, a 22.17% increase.
Other provinces experienced even faster growth, but only because their sales volumes were so low in previous years. Sales to non-residents in Toledo increased 500%, from 23 sales in 2021 to 137 sales in 2022. Rioja and Extramadura are also amongst the provinces with increased interest from foreigners but still low sales.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.