Foreigners are already buying 22% of homes from real estate agencies.

The Spanish real estate market is experiencing a decline in activity due to uncertainty, adjustments in the global economy and rising interest rates. According to the latest barometer published by the Spanish Real Estate Credit Union (UCI) and the Spanish Real Estate Alliance (SIRA), the level of real estate sales has fallen sharply across Spain and foreigners have become more active in the market.

According to these organizations, foreign buyers now account for 22% of all property sales, up 2% from a year earlier. However, coastal areas continue to attract more interest. According to agents, 46% of all foreign buyers are non-residents. By nationality, the UCI and SIRA barometer put Latin Americans at the top of the list (19%), followed by Brits (13%), Moroccans (11%), Germans (10%) and Romanians (8%).

When agents were asked about the most sought after property types by foreigners, they noted that apartments (60%) are most in demand, followed by apartments or studios (21%) and private houses (19%). Most foreign buyers (68%) purchase primary residences, followed by secondary residences (21%) and, to a lesser extent, rentals (11%).

The barometer also highlights which aspects are most valued by foreign clients. Above all, they prefer the availability of services nearby (28%), green areas (25%) or coastal areas (18%).

In terms of financing, the barometer shows that 30% of buyers need bank financing to complete the transaction. This financing is requested from Spanish banks (33%) or in their country of origin (21%), although they also turn to brokers in Spain or in their country of origin (29%) or to real estate agencies (17%).

The SIRA and UCI survey also summarizes real estate agents' expectations for the end of the year. Most experts believe that the number of sellers will remain stable or increase, while the number of buyers will decrease in the coming months. At the same time, 56% of real estate experts believe that home prices will continue to fall in the coming months.

Finally, the barometer reflects an increase in optimism among real estate agents compared to previous editions and at the third quarter 2022 level. Employment in the sector also remains stable, according to 87% of real estate professionals who believe that the number of employees will remain stable or increase slightly by the end of the year. This forecast is slightly lower than the previous three editions of the barometer.

Learn about the 10 steps foreigners need to take to buy a house in Spain.