Foreigners buy more houses on the islands than before covid

Foreigners continue betting on the purchase of homes on the islands. / arcadio suarez

A portal that reviews the purchase of housing, highlights that in the Canary Islands the operations registered in 2019 are slightly exceeded

EFE Madrid

foreigners buy now
more homes in Spain than before the pandemic and, although they still do not represent 16.9% of the total sales registered in 2019, they have exceeded the percentage weight they had that year in the Balearic Islands, Canary Islands, Aragon and Asturias.

While
in 2019, 84,263 homes were sold to foreigners -16.9% of the 501,085 transactions that year, according to the INE-, in 2021 the amount reached 86,524 -15.3% of the 565,523 sold in Spain-, that is, around 3% more than houses.

According to a study by
Euroval appraiserwhich reviews the evolution of home purchases by foreigners since the end of the 2007 bubble,
foreign demand has grown significantly in the last decade and has held up even in down market times.

Four autonomous communities exceeded the percentages of 2019 in 2021: Aragon (9.9% vs. 9.6%), Asturias (5.5% vs. 5.2%), Balearic Islands (39.5% vs. 35.5%) and
Canary Islands (30.8% vs. 30.4%).

Another nine maintain similar percentages: Andalusia (15.9% vs. 16.1%), Castilla-La Mancha (8.8% vs. 9.3%), Castilla-La Mancha (8.8% vs. 9.3%), Castilla and León (4.9% vs. 5.4%), Extremadura (2.8% vs. 3%), Galicia (3.7% vs. 3.8%), Navarra (9.2% vs. 9 .3%), the Basque Country (4.3% vs. 4.5%) and La Rioja (11% vs. 11.4%).

Recoil

at the opposite pole
five communities present clearly negative evolutions in percentage values, in 2021 compared to 2019: Cantabria (4.3% vs. 5.5%), Catalonia (14.8% vs. 16.5%), Valencian Community (28.5% vs. 34.1 %), Community of Madrid (8% vs. 9.7%) and Murcia (23.4% vs. 26.8%).

According to Euroval's analysis, purchases in
the Valencian Community in 2021 accounted for 27.4% of transactions of foreigners in Spain, a percentage somewhat lower than the community average since the beginning of the current upward cycle, in 2015, which is 28.6%.

Along with the Community of Valencia, Andalusia and Catalonia are the other two communities that present a higher percentage of purchases by foreigners over the national total and between the three they account for 63% of home sales to foreigners in Spain.

In the rest, the importance of international purchases over total transactions at the national level decreases notably.

In the Canary Islands it represents 7.3%, two tenths above Madrid (7.1%) and another five above the Balearic Islands (6.8%), while the percentages of the other communities range from 5.4% in Murcia and 0.3% from Extremadura.

To the head

By provinces, only in
Alicante foreigners buy one in five homess that they acquire in Spain, a percentage (19.4%) much higher than the rest.

In second position is Malaga (12.6%), followed by Barcelona (8%), Madrid (7.1%), the Balearic Islands (6.8%), Valencia (5.9%) and Murcia (5.4 %).

The geographical distribution of the percentage of purchases by foreigners over the national total confirms its
preference for coastal provinces and above all by those of the Mediterranean coast and the two archipelagos, which together account for more than 80% of the operations carried out by foreigners in Spain in 2021.

Impact of the war

Various studies, including the one published in May by
BBVA on the real estate situation, indicate that the impact of the war on house purchases in Spain by Russians and Ukrainians will be moderate.

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