Surging Demand: Americans Increasingly Buying Homes in Spain

Americans significantly increased the purchase of homes in Spain, with a 90% increase in transactions since 2019. In the first half of 2022 alone, they bought 1,162 homes, 75.5% more than in the same period of 2021. Experts point to structural and cyclical factors to explain this bullish trend. Spain is seen as an investment option in luxury properties.

In recent years, US citizens have set their sights on Spain, becoming one of the main buyers of homes in the country. According to the General Council of Notaries, during the first half of 2022, Americans bought 1,162 homes in Spain, 75.5% more than in the first half of 2021, signing not only the sixth-largest growth by nationality but also the largest volume of operations in the entire historical series. Additionally, they are the ones who pay the highest prices per square meter, surpassed only by buyers from Denmark.

The reasons behind this phenomenon are diverse, both structural and cyclical. On the one hand, Spain has a warm climate, a rich culture and cuisine, and affordable housing prices compared to major US cities. According to Felice Tufano, Vice President of FIABCI Spain and President of FIABCI Europe, cities like Barcelona, Madrid, or Marbella have much more affordable prices €/m2 than other cities in the world and, in particular, than US cities such as New York, San Francisco, or Los Angeles. These three cities were among the 10 most expensive to live in the world in 2022, after analyzing more than 400 prices of products and services in a total of 172 cities. In addition, the price of luxury housing in San Francisco and Los Angeles more than doubles what is recorded in Madrid or Barcelona, while it is more than three times higher in the case of New York.

On the other hand, many Americans see Spain as an investment opportunity, as the Spanish real estate market has recovered and remained stable in recent years after the financial crisis of 2008. In this sense, Americans are increasingly interested in buying luxury properties in Spain, where they tend to spend more on properties in the most exclusive and high-demand areas.

In the luxury market, there has been an acceleration of demand in recent times, according to real estate agencies. This is confirmed by Albert Milián, spokesperson for Sotheby's International Realty Barcelona and Costa Brava, who explains that "they are currently the star customer in high-end housing in Barcelona, although it is true that Sotheby's International Realty enjoys great prestige in the US. This has allowed us to have a recurring client over the years, but since 2021 we have noticed an explosion in demand and in 2022 this client has represented just over 30% of our operations in Barcelona."

In short, Americans have found in Spain a combination of factors that has led them to invest in the Spanish real estate market. The quality of life, climate, culture, cuisine, stability of the market, and affordable housing prices have generated growing interest among American buyers. This trend shows no signs of slowing down, so we can expect more to come.