The Shift in Luxury Real Estate: Wealthy Foreigners Flock to Northern Spain
When one thinks of affluent foreigners purchasing homes along the Spanish coast, the mind often drifts to the sun-soaked shores of the Balearic Islands, the vibrant city of Málaga, or the picturesque regions of Catalonia and Valencia. However, a notable transformation is underway in the luxury real estate market, as high-net-worth individuals are increasingly turning their attention to areas that were previously overlooked. The northern strip of the Iberian Peninsula, stretching from the lush landscapes of Galicia to the majestic Pyrenees, is now emerging as a desirable destination for luxury property buyers.
A New Wave of Buyers
Paloma Pérez, the executive director in Spain for Sotheby’s International Realty, has observed this shift firsthand. “Yes, we have noticed an increase in this type of buyer in the northern regions,” she confirms. This trend is echoed by Constanza Maya, operations director at Engel & Völkers Iberia, who notes a surge in transactions in these cooler, greener areas of Spain. “The buyers’ nationality depends on the particular area,” she explains, highlighting how different regions attract distinct demographics. For instance, the Pyrenees have seen an influx of Latin American clients seeking winter retreats, while Cantabria has traditionally attracted French buyers, now joined by Americans.
The Allure of Galicia
Rafael Rosendo, director of prime real estate firm Lucas Fox in Galicia, points out that American buyers are particularly drawn to the region. “Especially since last summer, when interest in properties over €1 million increased,” he states. Many of these buyers have familial ties to Galicia, as illustrated by the sale of a triplex in Vigo to a Galician who had emigrated to the United States. The trend extends beyond Americans; a Canadian buyer recently purchased a penthouse in the same city, further emphasizing the region’s growing appeal.
Interestingly, the desire for a cooler climate is prompting some buyers to shift their focus from the Mediterranean. Rosendo recounts the story of a German couple who, seeking respite from the summer heat, invested €1.8 million in a property in Galicia after owning a home in Altea on the Mediterranean coast. This trend, identified in a recent CaixaBank Research report, indicates that Galicia recorded the highest increase in home sales across Spain in 2024, with a staggering 22.3% rise.
Privacy and Space: Key Motivators
The allure of northern Spain extends beyond its climate. Many buyers are seeking properties that offer greater privacy and space, a stark contrast to the crowded tourist hotspots of the Mediterranean. Pérez notes that these buyers are often looking for secluded homes nestled in nature, particularly appealing to American clients. “They are looking for privacy, for secluded places in the middle of nature,” she adds.
The type of properties being purchased also reflects this desire for understated luxury. Traditional stone houses are favored over the modern villas typically found in Ibiza or Marbella. “It’s a silent luxury trend,” explains Silvia Blahutova, managing partner of Barnes San Sebastian. “They are people with money who want to go unnoticed, rather than be surrounded by other millionaires.”
A Younger Demographic
Another interesting aspect of this trend is the age demographic of buyers. “The owners of big fortunes are getting younger and younger,” says Ana White, director of premium properties at Knight Frank in Spain. These younger buyers are increasingly attracted to the quality of life that northern Spain offers, further driving demand in the region.
Competitive Pricing
Despite the growing interest from foreign buyers, the real estate market in northern Spain remains relatively competitive compared to other coastal destinations. Pérez highlights that properties in the north can be acquired for between €3 and €4 million, often at prices 10% lower than the initial asking price. Rosendo adds that homes sold through his firm typically close between 3% and 8% below the asking price, making it an attractive option for discerning buyers.
Maya points out that the price per square meter in northern Spain is significantly lower than in more popular areas. “The price of a square meter is lower than in other places because there has not been the same kind of demand,” she explains. However, recent data from Engel & Völkers indicates that certain areas are experiencing notable price increases. For example, Cantabria saw a 107% rise in average price per square meter in 2024, while Pontevedra and Álava also recorded substantial increases.
Foreign Buyer Statistics
While the percentage of foreign buyers in northern Spain remains lower than in the Mediterranean, the trend is shifting. According to the Association of Registrars, foreign buyers accounted for only 2.19% of property purchases in Galicia, compared to 32.6% in the Balearic Islands. However, the increasing interest from wealthy foreigners in the north suggests that this figure may rise in the coming years.
In summary, the northern regions of Spain are carving out a niche in the luxury real estate market, attracting a diverse array of wealthy buyers seeking cooler climates, privacy, and competitive pricing. As these areas gain recognition, they are poised to become a significant player in the luxury property landscape, offering a refreshing alternative to the more traditional coastal hotspots.
