Noticias de la Cámara
Foreign non-resident demand for housing in the first half of 2016 driven by strong tourism flows and price adjustments
28/11/2016
Purchases of housing by non-resident foreigners rose 18% YoY in the first half of 2016 thanks to increasing inflows of tourists (12% YoY) and a greater affordability due to significant adjustments in house prices in the main destinations for foreign demand (Alicante and Málaga). Strong foreign demand for housing in these areas is leading to a revival in residential activity, despite the still significant supply overhang.
Spain is enjoying a fantastic year in tourism and tourism related activities, particularly house purchasing. Whilst foreign tourist inflows increased by 12% YoY in the first half of the year, purchases of housing by non-resident foreigners rose 18% YoY during the same period, breaking the 20,000 per half-year barrier and representing around 10% of total transactions.
The increase in foreign demand for housing is also a reflection of the sharp adjustment in prices, particularly in “prime locations” for foreign tourists, which has increased their affordability for foreign buyers.
The full report is attached and can also be downloaded here.
