Foreigners actively buying real estate in Spain, while rentals in the country reach historic highs

In the first half of 2023, foreigners purchased every fifth apartment in Spain, according to the Idealista publication. Statistics show that the largest number of buyers of Spanish real estate comes from citizens of the United Kingdom, Germany, and Morocco.

One of the reasons for such active demand from foreigners is the opportunity to obtain a residence permit when purchasing residential or commercial properties worth €500,000 or more. This attractive offer allows foreigners to own property in Spain while legally residing in the country.

RENTAL COST INCREASE:

It's interesting to note that acquired real estate can be rented out, serving as an additional source of income for owners. According to Spanish media reports, the cost of renting houses has increased by 10% over the past year. Currently, the average cost of renting 1 square meter in Spain is €12.1 per month, which is the highest figure in the country's history.

The rise in rental costs can be explained by several factors. Firstly, Spain attracts many tourists, and many of them prefer to rent accommodation instead of staying in hotels. Secondly, the growing demand for rental properties is also related to the increasing number of foreign buyers who rent out their properties to generate additional income.

ADVANTAGES OF THE REAL ESTATE MARKET IN SPAIN:

Overall, the real estate market in Spain continues to attract the attention of foreign investors and buyers. The opportunity to obtain a residence permit, along with the increasing rental costs, makes Spanish real estate an attractive capital investment and a source of income.

The experts at Mercury Group will assist you in finding the finest properties in Spain, handling legal matters, and offering our investors a complete range of concierge services.