The appetite of Lithuanians and other foreigners in Spain is only growing: this is what is happening with real estate prices and supply Business

In the first quarter of the year, the prices of first and second homes on the coast increased the most in Málaga – 9.3 percent, in the Balearic Islands – 8.8 percent, and in Alicante – 7.2 percent. Analysts rule out the possibility that coastal housing is generally overvalued. The only exception would be specific locations on islands and on the Mediterranean coast.

“Only in Ibiza is there a particular situation of price tension, where demand is increasingly concentrated in the luxury housing segment,” says Andrea de la Hoz, senior consultant at Tinsa’s research department.

Kristina Aržuolaitienė’s photo. /Villa in Spain

Lithuanians are among the most interested

One of the culprits behind the increase in housing prices in Spanish coastal cities is foreigners and their “hunger” for real estate on the Spanish coast. They accounted for 25 percent. of the purchase and sale transactions that took place in these areas last year and 15.44 percent. of RT operations throughout the country.

“This number is the second highest on record and only slightly behind 2022.” in the third quarter – 15.92 percent. It shows a strong appetite among Europeans for Spanish real estate, as foreign investors now appear to be the main dynamic factor with the number of transactions decreasing,” says Ferran Font, pisos.com director of research and spokesperson.

The biggest “fans” of the Spanish coast who want to buy housing here are the British, French and Germans, who bought the most real estate in the country last year. However, analysts noted that citizens of Italy, Belgium and Ireland, as well as Ukrainians, Poles, Lithuanians, Russians, Chinese, Americans and Argentines, have increased their interest in Spanish real estate.

“British buyers stand out and value our area with great interest, not only for real estate prices, but also for climate and quality of life, which is why even today, when demand is more diverse than ever, they continue to occupy the first place in the ranking,” admits F .Font.

Builders and developers have realized that Spanish real estate attracts foreigners and have started to work with it: “In new housing, you can find complete projects for a specific nation, sold in the countries of origin, and even foreign developers focused on the demand profile of their country of origin,” he explains. A. de la Hoz.

Kristina Aržuolaitienė’s photo. /Villa in Spain

Rental prices grew by 9 percent.

Due to rising purchase prices, in the first quarter of this year, compared to the previous year, 8.9 percent. vacation rental in coastal areas has also risen, according to the INE tourist apartment rental price index (IPAP).

This recovery is slightly less than the double-digit acceleration recorded in the same period in 2022 and 2023. period, but “it’s still intense,” admits Tinsa. The research department indicates that almost three-quarters of the coastline reflects 5-30 percent. rent increase.