Moroccan Investors Reshape Spain's Real Estate Landscape: A 2024 Market Analysis
In a significant shift within Spain's property market, Moroccan investors have emerged as key players, securing their position as the second-largest group of foreign buyers in the second quarter of 2024. This development, reported by the online platform Merca2, highlights a growing trend that has seen Moroccan purchasers outpace traditional frontrunners in the Spanish real estate sector.
The data reveals that Moroccan buyers now account for 6.1% of total foreign property sales in Spain, trailing only behind German investors. This surge in Moroccan investment coincides with an overall uptick in foreign interest, with international buyers now representing 15% of all property transactions across the country.
Certain regions have proven particularly attractive to non-Spanish investors. The Balearic Islands lead the pack, with foreign buyers accounting for 33.37% of total sales, followed closely by the Canary Islands at 31.11% and Valencia at 28.79%. These areas, known for their appealing climate and lifestyle, continue to draw significant international attention.
While Moroccans have climbed the ranks, other nationalities maintain a strong presence in the market. French and Romanian buyers also feature prominently among foreign investors. Notably, British participation, which dominated the market in 2014 with 15.77% of foreign purchases, is projected to decline to 8.37% in 2024. This shift is partially attributed to the repercussions of Brexit and new restrictions on residency and investment for UK citizens.
The trend of Moroccan dominance in foreign property acquisitions is not new. In the first half of 2021, Moroccan buyers purchased 5,159 homes, representing 10.8% of total foreign transactions and surpassing British buyers, who acquired 4,614 properties (9.7% of the total).
Interestingly, while Moroccans lead in the number of purchases, they invest at the lower end of the price spectrum. The average price paid by Moroccan buyers stands at €640 per square meter, the lowest among foreign investors. In contrast, Swedish buyers top the list with an average of €2,768 per square meter, followed closely by Danish and German investors.
Despite a 7.5% year-on-year decrease in foreign property purchases in Spain during the first half of 2023, certain nationalities continued to show strong investment growth. Russian buyers increased their acquisitions by 50.2% compared to the previous year, with Ukrainian and American investors also showing significant upticks of 41.6% and 13.6%, respectively.
Murcia and Catalonia remain hotspots for foreign investment, attracting buyers with their mild climate and tourist appeal. As the Spanish real estate market continues to evolve, the increasing prominence of Moroccan investors signals a new chapter in the country's property landscape, reflecting broader shifts in global investment patterns and cross-border economic ties.