The British are still by far the biggest group of foreign buyers of Spanish property, almost double the next biggest group – the French. Agents and developers tell me they have seen an increase in British buyers with budgets above €400,000, and a fall in numbers in the middle market between €200,000 and €400,000.
Changes in British demand
There is a correlation between British demand for Spanish property and the strength of the pound, as you can see from the chart below. But whilst the pound has fallen below its level in 2013, British demand has been far more resilient.
Nationallity of buyers
A weaker pound means that some British buyers will be trading down, but in volume terms British demand has been surprisingly unaffected by the referendum result. Some buyers in the middle market are trading down, bolstering the lower end. I’ve heard one theory that Brits with financial resources are getting money out of the UK and into European assets like Spanish property before Brexit really bites.