What agents need to know about international buyers’ decision cycles

The Spanish property market is thriving, and foreign buyers are playing a key role. Unlike domestic buyers, international buyers take longer to make decisions due to logistics, market research, financing challenges, or national and cultural differences. For many agents, the extended wait is a valuable investment, as you are about to discover.

How do international buyers differ from domestic buyers?

Foreign buyers take anywhere from 3 to 12 months to buy their properties in Spain. Several key factors contribute to their extended decision-making cycle:

• National, cultural and legal differences: Property laws and the purchasing process may be unfamiliar to first-time buyers, requiring them to navigate additional legal requirements. Language barriers may also add further delays. thinkSPAIN offers a wide range of multilingual guides and articles tailored to all aspects of living, working, or retiring Spain.
• Financing challenges: Obtaining cross-border mortgages, waiting to sell property in their home countries, handling currency exchange, or transferring funds also extends final decisions. For elderly buyers, managing pension funds, researching healthcare options, and planning for future retirement living all require careful consideration and additional planning.
• Market research: Foreign buyers need more time to research different regions to match their needs. For many, this stems from being unfamiliar with the country and its diverse areas. thinkSPAIN’s Find Your Place filtering feature helps buyers explore the best locations in Spain based on their lifestyle preferences.
• Travel logistics: International buyers need to coordinate trips to Spain. This includes booking flights and accommodation, scheduling viewings, planning time off work, family commitments, etc.

Despite extending the buying process, these additional formalities don’t deter foreign buyers from choosing Spain.

The value of international buyers

The contribution of international buyers to the market is undeniable. In the first half of 2024, they accounted for over 20% of all property transactions, and up to 50% in sought-after locations. For estate agents, this represents a strong and growing segment. Targeting it can boost lead generation and therefore increase sales opportunities.

As well as representing a profitable segment due to their strong presence, overseas buyers also tend to spend more. On average, foreigners pay a third more per square metre compared to locals, depending on the region. This higher spend can be attributed to a number of key factors:

• In 2024, Spain's cost of living had an index of 53.9. This compares favourably to Germany's 62.7 or the UK's 63.7, for example. As a result, individuals receiving salaries or pensions from these countries can afford to spend relatively more on Spanish properties, reflecting their stronger purchasing power.
• Spanish banks offer the second-cheapest mortgages in Europe. Spanish mortgage interest rates averaged 3.2% as of late 2024, lower than the eurozone average of 3.5%. This offers overseas buyers more affordable financing options to secure a mortgage.
• Another factor contributing to the higher spending of international buyers is Spain's favourable climate and lifestyle. According to the Spanish Ministry of Tourism, Spain remains a top destination for European retirees and second-home buyers, many of whom are willing to pay a premium for properties that offer lifestyle benefits not available in their home countries.

Outdoor living stands as the main priority, but convenience is also valued. Many prefer to be within walking distance of local amenities and beaches. Houses and villas are the top choice for over 60% of buyers, preferably with terraces, gardens, and pools.

How agents can support international buyers

To keep international buyers engaged during their decision-making cycles, we recommend agents to try a tailored approach that differs from working with Spaniards.

• Detailed information in listings: It is important to provide high-quality photos of all rooms as well as the exterior and surrounding areas, virtual tours and remote viewings, and ensure property listings are clear, descriptive and complete. thinkSPAIN uses AI to automatically translate listings into 12 languages to help agents reach a broader international audience.
• Communication and follow-ups: Offer services in multiple languages, including document translation, and maintain frequent, transparent communication. This builds trust and ensures a smoother, more personalised experience for clients. Providing additional assistance with paperwork, money transfers or furniture moving options is a plus.
• Leverage technology: Virtual tours and digital document-sharing platforms help simplify the process for buyers who cannot visit Spain frequently. Additionally, making digital operations easier for older buyers is highly recommended to ensure a smooth and accessible experience for all.

The role of thinkSPAIN in helping agents stand out

thinkSPAIN is the Spanish property portal of choice for international buyers, and an essential resource for agents looking to tap into this dynamic and expanding market.

• Exceptional global reach: With over 2 million international visits each month, thinkSPAIN keeps your listings in front of buyers at every stage of their decision cycle, ensuring continuous exposure to a global audience.
• Trusted by agents: We have been giving Spanish properties remarkable global visibility since 2003. Last year, over 3,500 estate agents advertised properties on thinkSPAIN.
• Q1 visibility boost: Many buyers start their buying cycles early in the year by researching properties online and planning upcoming investments.