Foreign buyers now account for one in four Barcelona property sales, hitting record high

Last year, Barcelona's property market saw 15,960 apartments and houses sold. Growth was minimal, rising just 1% year-on-year. However, foreign buyers have set a new record, accounting for 25% of all transactions. This compares with 14-15% market share before the pandemic.

Local demand has stalled: Spanish buyers purchased just 0.7% more homes than the previous year. Foreign buyers, by contrast, increased purchases by 2%, suggesting that international demand is now the primary driver keeping the market afloat.

Prices tell an interesting story. The average price per square metre rose 6.3% to €4,674, whilst new-build properties climbed 6.1% to €5,320. This occurred despite near-zero growth in transaction volumes, pointing to a market strangled by supply shortages. New housing construction in Barcelona remains negligible, with just 689 new-build properties sold last year—a 10.3% decline year-on-year.

Corporate buyers are retreating. Investment companies cut purchases by 14.7%, driven by a hostile environment in Catalonia: high taxes, strict regulation and anti-speculation policies are deterring institutional investors.

The conclusion is clear: Barcelona is not a market of volume growth, but of price growth. Demand rests on foreign buyers, supply is constrained, and prices continue to climb.

Source: Spanish Property Insight