There has been a significant fall in British demand for Spanish homes since the EU referendum, despite the overall Spanish housing market growing by 14% last year, with property purchases by foreign buyers up 16%, according to the latest figures from the Spanish Association of Land Registrars.
The data reveals that sales registered to foreign buyers in the final quarter of last year were up 5.1% to 12,678 home purchases, with the British still the biggest group - accounting for 2,074 sales registered in the quarter - followed by German and French buyers.
But while the UK remains the largest market, its market share - in terms of the percentage of foreign buyers - dropped to 16% in Q4 2016, from 24% in the same period a year earlier, followed by Germany and France on 9%.
“The fall in UK demand was largely driven by the decline in the pound brought on by Brexit,” said Mark Stuklin of Spanish Property Insight.
Overall in 2016, sales registered to foreign purchasers were up 15% to around 53,500, led by Brits with 10,156 purchases, partly due to a strong start to the year.
Stucklin explained: “Over the year demand increased in most key markets, with the exception of Norway, Russia, and Denmark. The UK was up 2% for the year, but only because British purchases registered in Q1 last year were almost 50% up, based on sales that took place in Q4 2015, when the pound was riding high before Brexit worries took hold.
“If you compared 2016/2015 British purchases in the quarters that count Q2, Q3 & Q4 then British demand was down a cumulative 18% in that period, and all thanks to Brexit.”