US buyers have emerged as the leading foreign purchasers of property in Spain, paying the highest prices for real estate in the country. Their growing presence in Spain, particularly in central and northern regions, adds to the housing strain already affecting the nation. Unlike northern Europeans, who have long flocked to Spain for its sunny beaches and mild climate, US investors have only recently begun to make substantial inroads in the Spanish property market. Motivated by factors such as the strength of the dollar and concerns over political instability back home, American buyers have surged in number.
Recent data reveals a remarkable increase in property deals involving US citizens, with their transactions now more than four times higher than five years ago. In fact, US buyers now account for around 2% of the total 139,102 transactions by non-resident foreign nationals, according to reports. This marks a notable shift, as their presence in the market continues to grow, while the share of British buyers has declined from 12% to 8.5% during the same period. Interestingly, U.S. buyers paid, on average, nearly 30% more per square metre than their British counterparts, 3,390 euros compared to the 2,362 euros paid by foreign buyers overall.
Foreign nationals account for about 20% of all residential purchases in Spain, with US citizens being the most significant contributors to the rise in property prices. While housing in Spain remains more affordable than in many wealthier European countries, property prices surged by 11% in the last year alone, making it the second-largest increase in the European Union after Portugal. This price surge has intensified Spain’s ongoing housing crisis, which has sparked protests against rising rent and property prices.
In response, the Spanish government has threatened to impose a tax of up to 100% on property purchases by non-EU buyers, though experts remain sceptical that this measure will significantly curb price hikes caused by an ongoing housing shortage.
The end of Spain’s 'golden visa' programme, which granted residency rights to foreign investors purchasing large amounts of property, has further complicated matters. While many US buyers previously took advantage of the scheme, its discontinuation is unlikely to stop Americans from investing in the country if they perceive the prices as favourable.
Spain’s real estate market, especially in cities like Madrid and along the southern Costa del Sol, continues to attract attention from US buyers who see substantial potential for price growth compared to other European cities. Many of these buyers, particularly those with Latin American heritage, are drawn to Spain not just for its climate and relatively affordable prices but also because of the shared language and cultural ties, making it an appealing option for those looking to invest abroad.
