International demand is proving key to the resistance of the real estate market in Spain, and particularly in the Canary Islands, despite the tightening of interest rates.
In 2022, foreigners bought almost four out of 10 houses in the Canary Islands (37%), according to a report by the Appraisal and Valuation Society Euroval, analyzed by the Idealista real estate portal.
The percentage of international buyers has increased from 30.8% in 2021 to 37% in the last year. Before the pandemic, in 2019, the percentage of international acquisitions was 30.4%.
Only in the Balearic Islands, with 41.3%, is the percentage of foreign buyers higher than in the Canary Islands. In third place is the Valencian Community, where it reaches 35.9%.
In the first quarter of 2023, when a certain contraction of activity is already evident due to the rise in mortgage interest rates, registrars confirm that foreign demand for housing remains in force and accounts for more than 23,300 transactions in Spain.
Of the total number of homes acquired by foreigners in Spain, three communities concentrate 65%. At the head, and far ahead of the others, is the Valencian Community, which accounts for 30% of the houses bought by foreigners in Spain.
Another 21% is in Andalusia and the remaining 14% in Catalonia. The Canary Islands, with 9% of foreign purchases, occupies the fourth position. Next are Madrid (6%), the Balearic Islands (6%) and Murcia (5%).
