Northern Spain is becoming a new magnet for foreign property buyers

Traditional favorites like Catalonia, Valencia and the Balearic Islands are losing ground to unexpected regions.

More and more wealthy foreigners are choosing the northern autonomous regions of Spain – Galicia, Cantabria and Asturias – regions where until a few years ago foreign presence was rare.

The green north versus the hot south
According to data from Sotheby's International Realty and Engel & Völkers , demand for luxury properties in these areas has increased sharply in the past year. The reasons are a milder climate, an abundance of greenery and a desire to escape the Mediterranean heat. German families who already own villas on the Costa Blanca are now adding homes in Galicia, while Americans are actively buying properties priced above 1 million euros.

Prices are hitting records
The growing demand is already being reflected in prices: in Cantabria the price per square meter has jumped by 107% (to €4,110), and in Pontevedra – by 44% (to €2,070). However, these values are still far from the levels of Mediterranean resorts – in Marbella the price reaches €8,650 per sq m, and in Ibiza – €5,360.

Who buys and where?
The Americans are focusing on Galicia, where a housing complex was recently sold for a record amount to a Spaniard living in the United States.
The French traditionally prefer Cantabria, but now they are joined by the British and Scandinavians.
Germans are looking for an alternative to the oversaturated southern resorts.

The flip side of the boom
Local residents are increasingly expressing their discontent. Mass protests against rising housing prices have swept across Spain: rents have doubled in the last 10 years, and supply has fallen by 50% due to the reallocation of housing to the tourist sector.

As authorities seek a balance between investment inflows and housing affordability, the northern part of the country is undergoing a transformation – from a quiet agricultural region to a new point of attraction for international capital.

Based on materials from prianproperty.com