Foreign Demand for Homes in Spain: A Record-Breaking Year in 2025

Foreign interest in the Spanish real estate market has shown remarkable resilience, with 2025 marking a record year for property transactions involving international buyers. According to the latest statistical report from the College of Registrars, nearly 100,000 transactions were completed by foreigners, setting a new benchmark for the market.

The Numbers Behind the Boom

In total, foreign buyers acquired approximately 97,500 properties, which accounted for 13.8% of all sales in Spain. While this figure represents an absolute record, it also indicates a slight decline in the percentage of foreign buyers compared to previous years. In 2024, their share was nearly 14.6%, and in 2023, it peaked at almost 15%. Despite this downward trend in percentage terms, the overall volume of sales has increased, highlighting the significant role that foreign demand plays in the Spanish property market.

The Property Registrars’ yearbook emphasizes that this trend of slight percentage declines, coupled with rising absolute numbers, underscores the importance of foreign investment in maintaining the strength of Spain’s real estate sector.

Coastal Provinces: A Magnet for Foreign Buyers

Certain coastal provinces have become particularly attractive to foreign buyers, with some areas seeing foreigners purchase one in five homes sold. Leading the charge is Alicante, where a staggering 43.29% of transactions were made by international buyers in 2025. Following closely are Málaga (32.80%) and Santa Cruz de Tenerife (30.04%). Other notable provinces include the Balearic Islands (29.86%), Girona (25%), Las Palmas (21.72%), and Murcia (21.42%).

In contrast, urban centers like Valencia and Madrid saw lower foreign participation, with only 12.23% and 6.9% of transactions, respectively. Some provinces, such as Salamanca, Jaén, and Badajoz, recorded foreign buyer participation below 2%.

Who Are the Foreign Buyers?

The demographics of foreign buyers reveal interesting trends. The British continue to lead as the largest group of foreign purchasers, acquiring 7,665 properties (7.97% of total foreign purchases). However, their market share is gradually being eclipsed by other nationalities. The Germans follow closely with 6,273 transactions (6.52%), while the Dutch (6,071, or 6.3%), Moroccans (5,524, or 5.74%), Romanians (5,042, or 5.24%), and French (4,918, or 5.11%) round out the top five.

Geographical preferences also vary by nationality. British buyers predominantly favor Andalusia, Murcia, and the Valencian Community, while Germans are drawn to the Balearic Islands. The French prefer Catalonia, Italians are inclined towards the Canary Islands, and Chinese buyers are increasingly looking at properties in Madrid.

Property Preferences: New vs. Second-Hand Homes

When it comes to property types, foreign buyers show a preference for second-hand homes, with only 21.54% opting for new builds, compared to 21.76% of Spanish buyers. Among the leading nationalities, the French (86.42%), Bulgarians (85.34%), and Moroccans (85.28%) are particularly inclined towards purchasing existing properties. Conversely, Polish (39.84%), Belgian (34.49%), and Dutch (32.91%) buyers are more likely to invest in new constructions.

In terms of property size, Spaniards typically purchase larger homes, while foreigners tend to favor smaller properties, often as second homes rather than primary residences.

Rising Property Prices and High-Value Transactions

The Spanish real estate market has witnessed a significant increase in average property prices, reaching €2,284/m² in 2025. The Community of Madrid leads the way with an average of €4,091/m², followed by the Balearic Islands (€3,988/m²), Basque Country (€3,295/m²), and Catalonia (€2,709/m²).

This surge in prices has also led to a notable rise in high-value transactions. For the first time, over 12% of homes purchased by foreigners exceeded €500,000. The Balearic Islands (41.79%), Madrid (24.4%), Andalusia (19.22%), and Catalonia (13.15%) all surpassed the national average for high-value purchases.

The registrars noted that this trend marks a return to growth after a brief interruption in 2023, with the acceleration in average property prices contributing to the increase in high-value transactions. Among foreign buyers spending over €500,000, 53% hailed from EU countries, while 47% came from non-EU nations.

The Spanish real estate market continues to thrive, driven by robust foreign demand and evolving buyer preferences. As the landscape shifts, it remains to be seen how these trends will shape the future of property transactions in Spain.