The number of homes purchased by British citizens residing in Spanish territory marked a before and after the Brexit aftermath. The referendum to decide whether to stay or leave the European Union that was held in the United Kingdom on June 23rd, 2016 implied a 12 point drop. On the last quarter of 2021 and the first period of 2022, the percentage of purchases was around 12%, when it was previously at 24%. It has fallen by half. Brexit destroyed the evolution of the British buying rhythm. Citizens of this provenance were leaders with one purchase in four in 2016, they were the resident foreigners who bought the most homes in Spain. However, because of the holding of the referendum, the percentage fell nine points, from the aforementioned 24% to 15% in just one year.
According to the ranking of foreign home purchases in Spain, prepared by the appraisal company UVE Valoraciones, after the drop in purchases caused by Brexit, the percentage remained relatively stable for a couple of years. Subsequently, the percentage dropped a few points, breaking the 10% barrier. Today, however, the figure has risen to a dozen points. According to the president of UVE Valoraciones, Germán Pérez Barrio, Brexit has had a "negative" influence on home sales in Spain, but it is "moderate", with an increase among buyers of other nationalities.
House purchases by foreigners return to pre-pandemic levels.
In spite of everything, as highlighted by Pérez Barrio, the number of homes bought by foreigners living in Spain has increased. Thus, although there are variations in the percentage of British buyers, the total number of homes sold to foreign residents has not been affected by the result of the British referendum. The sale and purchase of homes by foreigners in Spain soared in 2021, with a 28.3% increase, reaching 60,973 operations, confirming the recovery of the sector, which is at pre-pandemic values and maintains an upward trend. This is indicated in a report by the Association of Real Estate Agents of Catalonia (AIC) and the Official Association of Real Estate Agents (COAPIO), according to which home purchases formalized by foreigners represented 10.8% of the total, a percentage that has fallen 0.52 points in comparison to the previous year, maintaining the downward trend of recent years.
Alicante, the preferred investment destination for foreigners
The study highlights that foreigners' preferred destination to invest in the real estate market is Alicante, followed by Santa Cruz de Tenerife and the Balearic Islands. The Andalusian territory also occupies an important place when it comes to the choice of foreigners, Malaga and Seville being the most sought-after provinces. Las Palmas closes this list in sixth place. The British prefer Catalonia, followed by the Valencia, Murcia and Andalusia. The Germans coincide with these preferences, except in the case of Murcia, which is not among their favourites. However, Italians are the main buyers in Catalonia, ahead of Andalusia and Murcia, where the British still lead.