Almost 80% of second-home buyers in 2022 were foreign

IN 2022 78.8% of buyers of second homes in the Valencia Region were foreigners, as were 70.1% of those who bought here for investment purposes. according to a survey of estate agents.

Nearly 80% of second homes were bought by foreign buyers (PhotoMIX Company on Pexels)

When it came to primary residences, 65.2% of buyers were of Spanish origin, with the most frequent buyer profile being families with children who are already homeowners but want to move, have personal savings, and with an average age of 43.4. The price of the most sought-after properties was between 100,000 and 150,000 euros. These are the main conclusions of a Survey about homebuyers in 2022, carried out by FAI, the National Association of Estate Agents and ASICVAL, the Association of Estate Agents for the Valencia Region.

Who’s buying property?

The profile of the majority of homebuyers has not changed much in relation to the same survey in 2021, although there are differences in specific sections, according to the Valencian estate agencies surveyed. People aged between 40 and 50 head the list of buyers, accounting for 40.4% of acquisitions, followed by the 30-40 age bracket, with 36.3%. In 2021, they accounted for 47.1% and 37.3%, respectively. However, the number of 50-60-year-olds paying for a home in 2022 (22.2%) increased compared to 2021 (15.7%) while just 1% of buyers were in their 20s and 30s.

The number of families with children buying a home dropped to 44.3% in 2022, compared to 62.8% in the previous year. However, in 2022 more couples without children (33.8% compared to 23.5% in 2021) and single people (19.5% compared to 13.7% in 2021) decided to buy a property. Companies accounted for 2.25% of purchases.

Regarding the use of the dwellings purchased last year, 68.7% were bought as a main residence, 3.99 points more than in 2021. However, purchases of second homes (21.2%) and those for investment (10.1%) fell in 2022. Comparatively, in 2021 they reached higher values of 23.5% and 11.8%, respectively.

Among homebuyers, 64.6% of transactions were homeowners moving house, 19.2% switching from renting to buying and 16.1% were first-time buyers.

Second homes and investment housing in the hands of foreign buyers

Buyers of Spanish origin (65.2%) accounted for most of the purchases of primary residences, followed by those of non-EU origin (18.4%) and those from other EU countries (16.3%).

As for the purchase of second homes, 78.8% of buyers were of foreign origin (44.4% from EU countries and 34.3% from non-EU countries). The percentage of Spanish buyers who purchased a second home in the Valencia Region was 21.11%.

With regard to investment purchases in Valencia, 36.1% of buyers were from non-EU countries, compared with 34% of EU buyers and 29.8% of Spanish buyers who opted for this type of operation.

Homes between less than €100,000 and €200,000, financed with personal savings and mortgage

According to Valencian estate agents, properties between €100,000 and €150,000 were the most in-demand by buyers (43.4%), followed by those under €100,000 (24.2%) and those between €150,000 and €200,000 (21.2%). Properties between €200,000 and €300,000 accounted for 4% of enquiries, while those over €300,000 accounted for 7%.

In terms of financing, 42.1% of buyers opted for a combination of personal savings and mortgages. The percentage of people who bought a home exclusively with personal savings stood at 26.5% compared to 15.7% in 2021. Those who bought with mortgage-only financing has risen from 15.7% in 2021 to 19.7% last year. The formula: savings, family loan and mortgage accounted for 6,8% of buyers. The remaining 4.7% opted for other forms of financing.

In the case of mortgage financing, the surveyed agencies revealed that 45.4% of mortgage loans were granted for 80% of the purchase value, 42.4% for less than 80%, and 12.1% for more than 80%.

Finally, with regard to the time taken to process the sale and purchase transactions, 58.5% of the agencies surveyed stated that it took between two and four months to complete the process, while 34.3% reduced this time to between one and two months. Six percent indicated that it took between four and six months. Only 1% took more than 10 months.

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