Buyer Insights

International buyer insights – Q4 2017

As a property agent it can be easy to get stuck into your daily routine and forget to step back once in a while and look at the bigger picture. But taking an interest in international buyer data will help you make better informed business decisions that will have an impact on your bottom line. If data isn’t your thing, don’t worry – we’ve done the digging for you. In this post we’ve pulled together the most useful statistics about where people are buying from the Q4 2017 report produced by Fomento.gob.es to help you drive more international sales.

Overall trends

Despite continued economic uncertainty, the international housing market in Spain has gone from strength to strength. Q4 2017 saw 24,275 international sales – up 13.3% on the previous year. International sales now represent over 17% of total house sales in Spain

What does this mean for you?

Great news for Spanish agents targeting international buyers. The market is growing strongly, meaning it’s the perfect time to invest in the right technology and infrastructure to help you get even more international eyes on your property portfolio.

Which areas are most popular with international buyers?

The international activity report can tell us which locations are the most popular with international buyers. If we look at market share, Alicante tops the list with a massive 50% of housing sales being attributable to foreign buyers – that’s over 5,500 properties in Q4 alone! Following closely behind are the islands of Tenerife and The Balearics with 42% and 37% of international purchases respectively. Malaga (33%) and Las Palmas (30%) take the final two places in the top five.

What does this mean for you?

If you list your properties on an international property portal such as Kyero, focus your efforts on the ones that are in areas you know are particular popular among international buyers. That way you’ll get the greatest return on investment for the time and effort you spend. If you meet buyers from other countries who are unsure as to which area they would like to relocate to, suggest visiting these popular destinations and sell the benefits of joining an already established ex pat community.

Which locations are growing and falling in popularity?

By comparing Q4 2017’s figures with those of the previous year we are able to tell which provinces are rising and declining in popularity. The top riser with an incredible 189% growth in foreign sales since 2016 is Ourense, where only 6% of the property market is made up of foreign sales. Second highest growth market is Cuenca with a 121% increase on 2016 figures, with Guadalajara coming in third, boasting a 69% rise.

By looking at year on year sales we can also identify which locations are falling out of favour with international buyers. Topping the list is Teruel, with a 40% fall in sales since 2016, as well as Pontevedra (-20%), Soria (-17%), Girona (-13%) and Barcelona (-2%).

What does this mean for you?

It’s true that the most popular destinations in previous years have been coastal locations like The Costas and the islands, and 2017 was no exception, but could we be seeing a changing trend?

Let’s see what the biggest risers and fallers have in common. Cuenca and Guadalajara are located within the central region of Castile-La Mancha to the East of Madrid. The upwards trend of property sales in this area has been widely reported in Spanish real estate media in recent years. Fallers Teruel and Pontevedra are located just outside of this region – could it be that we are seeing buyers pulled into Castile-La Mancha due to its booming popularity and reasonable land prices? Similarly, the cities of Girona and Barcelona have seen falls, while areas just a short drive inland, such as Zaragoza and Huesca have seen a rise in popularity.

It is possible to surmise that in these times of uncertainty and rising house prices, people are choosing to invest their money further inland and outside of major cities, where they feel they are getting more value for money. Armed with this knowledge, you may wish to try to attract properties in these and other similar areas to your portfolio.   

We’ll be checking the data regularly to get further insights into international activity in the Spanish housing market – so keep an eye out for more information that will help inform your business decisions.

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