More than a third of the homes sold in the Balearic Islands are bought by foreign citizens, according to a report by the Statistical Information Center of the Notary’s Office on the typology of the buyer in the Spanish real estate market. The report warns of significant differences by autonomous communities in the participation of foreigners and Spaniards in the purchase of housing. In the inland and northern regions of Spain, such as Extremadura (97.0 %), Galicia (96.4 %) and Cantabria (96.2 %), the majority of transactions were by national buyers, with a very low foreign participation of less than 5 %. On the contrary, in coastal and tourist areas, where there is historically a greater presence of residents and international tourists, the participation of foreign buyers is much higher. The Balearic Islands stand out, where 38.3 % of purchases were made by foreign individuals, as well as the Canary Islands (36.4 %) and the Valencian Community (33.1 %). Murcia also shows a considerable participation of foreign buyers, with 26.6 %, while in regions such as Catalonia (16.8 %) and Andalusia (16.7 %), although the majority of purchases continue to be by Spaniards, there is a notable proportion of international buyers. Madrid, despite its status as a capital city and an important economic center, says the report, has a balance closer to the average, with 9.5 % of purchases attributed to foreigners, reflecting a more diversified market in terms of the origin of buyers. On the other hand, there are also important territorial differences in the distribution of home purchases by individuals or legal entities. In this case it is Asturias which registers the highest percentage of purchases by national legal entities, with 99.1%, followed by Cantabria and the Basque Country, both with 98.1%, which therefore means that real estate transactions by foreign entities are minimal, with less than 2% of the total. The autonomous communities with the highest percentage of foreign buyers are mainly in tourist and coastal areas. The Canary Islands stand out, where foreign legal entities account for 35.7 % of purchases; the Balearic Islands with 24.7 %; and the Valencian Community, with 20.7 %. In communities such as Andalusia (17.1%) and Murcia (13.2%), although the majority of purchases continue to be made by national legal entities, the foreign presence is considerably higher than in other inland areas, while Catalonia and Madrid, being key economic centers, also show a significant participation of foreign entities, with 9.1% and 5.9%, respectively. These figures reflect a strong interest of foreign entities in acquiring properties in areas of high tourist and investment attraction, says the report of the General Council of Notaries, released this week.
