There has been a decrease in purchases since the start of 2023. | Archive

In 2023, the fall in foreign home buying has been greater in the Balearics than at a national level. And in August, foreign buying in the Balearics was the lowest since 2015.

Hans Lenz, president of the ABINI association of national and international real estate agencies, said on Monday that the sector will need to adjust expectations.

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Figures from the College of Registrars show that there was a 31% decrease in foreign home buying in the first quarter of 2023 and a 28% decrease in the second quarter. Nevertheless, foreign buyers continue to account for 35% of total purchases in the Balearics. Germany is the main source - 60% of this 35%, followed by the UK (12%).

Italy is a growth market, now up to seven per cent, with a focus on Ibiza and Formentera in particular. Despite the growth in the number of visitors, the US market continues to occupy a very low percentage.

There has been a marked slowdown in the foreign market, which was at a record level in 2022.