British buyers may be airing on the side of caution when it comes to buying a property in Spain before Brexit, but they are still buying nearly twice as much property than other foreign nationalities, new reports shows.
In the second quarter (Q2) of 2019, a total of 16,000 Spanish properties were bought by foreigners, accounting for one in eight of all residential property sales, according to the Spanish registrars.
British buyers were top of the foreign buyers market in Q2, taking 13.31% of the market share – equating to 2,140 transactions. French buyers followed – accounting for 7.62%, Germany (7.3%) and Morocco (6.48%).
Despite the Brits buying more property than any other foreign nationality, figures do show that sales across most nationalities are slowing down; compared with Q2 of 2018, British purchases have fallen by 17%, Germany 10% while property sales to Swedish and Norwegian buyers have fallen by 31%. The only countries that showed positive annualised growth in Q2 2019 were Morocco, Romania and France with sales rising by 19%, 2% and 1% respectively.
So, why is the foreign market slowing down? It may just be that bargain properties are harder to find now in Spain, following years of positive growth in house prices, making purchases less attractive to oversea investors – or it could be that all the uncertainty shrouding Brexit is causing many foreign buyers to take a sit and wait approach.
Whatever the cause, it is reassuring that the current trend is generalized and that British buyers have not completely abandoned the property market – they still remain the top country for foreign property purchases in Spain.