Spanish resale properties sold to foreigners drop by almost 18%

The latest Spanish Ministry of Housing (MVIV) figures reveal that the number of property resale transactions to foreign buyers actually fell by almost 18% from Q2 2006 to Q2 2007, from 21,628 to 17,815.

More specifically a significant drop in figures was recorded in the Spanish capital, Madrid, where resales to foreigners declined from 3496 in 2006 to 1562 in 2007, a drop of 55%. A similar story was reported from the Castilla La Mancha province, also in central Spain, where a drop of 44% occurred during the same period, falling from 692 in Q2 2006 to 388 in Q2 2007.

In contrast, however, this latest period saw a huge increase in resales to foreign buyers in the Canary Islands, from 1012 resale properties sold in the 2006 period to 1746 properties sold in the 2007 period, resulting in an increase in sales of resold properties of 73%.

The Andalucia region also saw an increase in the number of resale properties sold to foreigners. Figures were up 24% from 2317 to 2861, according to the Spanish Ministry of Housing. Within Andalucia, the province of Granada showed the greatest growth in foreign resales, increasing by 84% between Q2 2006 and Q2 2007, reflecting changing buyer demands.

Martin Dell, MD of Kyero.com, comments, “Even though these figures from the MVIV are now almost 9 months old and have their limitations, it's the first time that this data has been made available to the public. It confirms the scope of the downturn in the number of property purchases by foreigners in Spain. What's surprising is how well the region of Andalucia performed and, in particular, the strong performance of the Canary Islands.”

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