Brexit is contributing to a "worrying" decline in real estate sales in the Balearic Islands of Spain: sales by British, German, and other buyers are down by 28%.

The UK's exit from the European Union is having a negative impact on property sales to foreign buyers in the Balearic Islands, experts have warned. The latest figures from the Balearic Association of National and International Real Estate Agencies (ABINI) show that the number of homes sold to foreign buyers in the second quarter of 2023 fell by 28% year-on-year. This is the biggest drop of any region in Spain, which has alarmed industry leaders, especially as real estate sales account for 20% of the region's annual GDP.

According to ABINI, this follows a significant decline in the first quarter of this year, stirring fears of a downward trend that is unfavorable for the islands' economy, Ultima Hora reported.Germany, the UK and the Nordic countries - in order - are the most important clients for the Balearic Islands' real estate market. However, Germany, like many other European countries, is struggling with inflation and a cost-of-living crisis, causing potential buyers to put off buying their dream home in the sun. Meanwhile, Brexit has made many Brits rethink buying a home in Spain, given that they can only enjoy their Spanish vacations for three consecutive months due to the stricter 90/180 day rule.Despite the downward trend, sales to foreign buyers in the Balearic Islands still account for 30.4% of total sales, an impressive figure