IT would seem that the effects of Brexit are starting to bite on the British share of the Spanish property market.
Latest figures show that the number of UK buyers has been dipping in 2021 ever since ‘real Brexit’ brought in new visa requirements.
Prior to the 2016 referendum, Brits made up 25% of the foreign market in Spain according to the Association of Spanish Land Registrars.
But that figure has plunged to just 9.5% by the second quarter of this yea – the lowest level since records began and a long way from the peaks seen in 2007 of around 45%.
Now, the German segment is nearly on a par, with it accounting for 9.04% of the foreign market.
Brits still make up the biggest group of fore ign buyers, accounting for 1,296 home sales in Spain in the second quarter of 2021, but long gone are the days when they were accounted for more than twice the sales of any other nationality.
In the past dips in British demand were often linked to periods when Sterling was weak but this should not be the case at the moment, with the pound standing up reasonably well this year.
The obvious reason is the extra obstacles put in the way of UK buyers looking for a home in Spain since the start of this year. These do not affect purchasers from EU nations, hence their numbers are holding up pretty well.
High transaction costs in Spain and the possibility of ‘non resident’ taxes may also be having effect.