Spain Property Market 2023 (Guide for British Buyers)
Spain property prices – a quick summary
As a whole, Spanish property prices have risen steadily over the last few years.
Below is the annual change based on Spain House Price Index produced by TINSA – a leading Spanish property valuation expert.
2019: +5.2%
2020: +6.7%
2021: +5.2.%
2022: +8.4%
As you can see above, there have been gains in all years.
Nothing too drastic – just single-digit growth.
Has Brexit led to a fall in Spanish property prices?
The simple answer is no.
Overall, Spanish property prices have risen since Brexit.
Some coastal areas have seen a decline in demand from British buyers.
But the Spanish property market has held up because demand has been strong from other nationalities, such as German, French, Scandinavian, Irish, Russian, and Chinese buyers – who have not been affected by Brexit.
In addition, ultra-low interest rates have boosted demand from local buyers.
Can Brits still retire in Spain?
No doubt, Brexit has changed a few things for retirees.
For those who are already legal residents of Spain, there is little to worry about.
Your current rights are protected by the Withdrawal Agreement.
For those looking to retire in Spain, there are now solutions post-Brexit.
If you want to become a legal resident of Spain, going forward, you will need to get something called a TIE residence card.
It’s possible to do it yourself.
But my advice would be to get assistance from a legal professional in Spain.
Here is an affordable and competent Spanish law practice I am happy to recommend and know will do a good job.
It won’t cost much – around €300 – to get their expert help (and there’s no kickback for us).
We’ve used the services of this company and found them to be trustworthy.
While you might consider this step a pain, let’s face it – if you want to live or buy a property in Spain, spending a few hundred Euros is nothing to make sure you are on the right side of the law.
Healthcare is another concern for pensioners. That is something the UK government is still in negotiation about with countries in the EU.
Spain and France have already indicated they remain keen to attract British nationals to live in their country as long as those individuals are not a financial burden on the state (it’s not exactly an unreasonable request).
As they say, where there’s a will, there’s a way.
In the interim, it is best to have private healthcare.
While it adds a cost, you may find it is not an obstacle to stop you from fulfilling your life plans.
Remember: day-to-day life is a lot cheaper in Spain anyway and the sun is usually shining. That’s still the case.
Buying a holiday home in Spain
If you are looking to buy a holiday home in Spain, I can’t see how Brexit is an issue.
Post-Brexit, UK citizens have the same rights as citizens from other non-EU countries like the US, Canada, Australia, and New Zealand.
It means you can visit Spain without the need for a visa but are restricted to a 90-day limit every 180 days.
So effectively you can stay in Spain for 6 months a year (half the time).
Do you know any second homeowners or holidaymakers that use their Spanish property for more than 6 months a year?
I’ve never met one.
From a logical standpoint, Brexit doesn’t impede British holiday homeowners in Spain.
Spanish property is cheap compared to the UK
If you were hoping that prices had crashed since Brexit, I wouldn’t be too disappointed.
Compared to the UK, property in Spain is cheap.
The post-Covid property boom seems to have widened the gap.
The best way to compare the cost of property between Spain and the UK is to look at the average property price per square metre.
By using cost per square metre, you also take into account the average size of a property.
In countries like Spain, it’s less crowded than in the UK, so the average property size tends to be bigger.
You have to also take into account exchange rate differences.
Overall, the average property price in the UK is 72% higher than in Spain based on price per square metre.
That’s a significant difference.
But when you get on the ground, you can see it for yourself.
Put simply, you get more property for less money in Spain.
A lot of Brits pocket the difference (and live the good life).
The Brits are back (they never actually left)
It might surprise you to know that Brits continue to buy more Spanish property than any other foreign nationals.
In 2022, British buyers made up 9.3% of total foreign buyers.
In case you were wondering the Germans (8%) were second and the French (6.2%) third.
If you just read the mainstream press for news, you would think Brits had abandoned Spain altogether.
Far from true.
The reasons are simple…
Spain’s key attractions remain the same: climate, lifestyle, and great value for money.