In the latter half of 2023, the Canary Islands experienced a 21% reduction in the number of property transactions by foreign buyers, totaling 4,280 deals. This decline is part of a broader trend observed across Spain, where foreign transactions decreased by 10% to 63,183, yet these still accounted for 20.9% of all property sales and purchases nationally, slightly up from 20.6% in 2022.
Data from the General Council of Notaries indicates that this period marked a second consecutive semester of year-on-year declines, following a 7.2% fall in the first half of the previous year, interrupting the growth seen in 2021 and 2022.
Foreign residents were responsible for 57.3% of these transactions, a decrease of 7% from the previous year, while non-residents accounted for the remaining 42.7%, which saw a 13.6% decrease.
The average price per square metre for properties purchased by foreigners in the second half of 2023 was €2,175, marking a 4.1% increase from the previous year.
Regional disparities were evident, with foreign property sales dropping in twelve autonomous communities but rising in five others. Asturias led with an 11.5% increase, followed by gains in Cantabria, La Rioja, Murcia, and Castilla la Mancha. In contrast, the steepest declines were noted in the Canary Islands, Balearic Islands, Andalusia, Catalonia, and Navarre.
THE BRITISH ONCE AGAIN LEAD IN PROPERTY PURCHASES
Price trends varied across regions as well, with the Basque Country experiencing the most significant price drop, while Navarre saw the largest increase. The British led foreign property purchases, followed by Moroccans and Germans. Noteworthy is that purchases by Norwegians, Germans, and Swedes saw the sharpest declines, whereas Ireland, Ukraine, and Russia recorded increases.
Among nationalities, Poles, Russians, and Chinese experienced the most significant growth in transaction prices, whereas Colombian and Irish buyers saw the largest price declines. Swedes, Americans, Germans, and Swiss buyers paid the highest average prices per square metre.
