As Fuerteventura continues to attract investors, the Spanish real estate market sees significant activity.
According to preliminary data from property registrars, home sales in Spain exceeded 705,000 units in 2025, marking a remarkable 10.4% year-on-year increase—the highest level of transactions since the peak of the real estate boom in 2008. Notably, foreign buyers constituted 13.8% of these sales, equating to approximately 97,300 transactions, setting a new record for non-Spanish nationals. Among these international buyers, citizens from the European Union accounted for over half, which climbs to more than 60% if we include other European nations like the UK, the largest group of foreign buyers in Spain.
The sale of existing homes saw a record high, with over 556,091 transactions in 2025—an increase of 10.1% from the previous year. Resale properties made up 78.9% of total sales. Conversely, new construction sales reached 149,266 units, reflecting a 13.3% year-on-year rise, although this segment faced challenges due to a limited supply of new properties.
Key real estate markets such as Andalusia, the Valencian Community, Catalonia, and Madrid collectively accounted for 65% of total transactions, although their growth has been more stable in contrast to smaller regions like Galicia, La Rioja, Navarra, and Castilla-La Mancha, which experienced double-digit growth.
Despite a slight decrease in foreign demand—down from 14.6% in 2024 to 13.8% in 2025—the absolute numbers remain significant. While almost 93,000 homes were purchased by foreigners in 2024, this figure climbed by nearly 5% in 2025.
In the fourth quarter, British buyers held the largest share at 8.57%, followed by Germans (6.67%), Dutch (5.91%), Moroccans (5.30%), French (5.28%), Romanians (5.17%), and Italians (4.76%). Regions with the highest percentage of foreign purchases included the Balearic Islands (32.8%), the Valencian Community (29.6%), and the Canary Islands (24.5%). In Alicante, a notable 45.7% of all transactions were made by foreign buyers.
Average housing prices in Spain continue their upward trajectory, rising by 9.5% to reach €2,354 per square meter—marking a new peak. Prices for new homes reached €2,500 per square meter, an 8% increase compared to 2024, while existing homes concluded the year at €2,317 per square meter. The Community of Madrid led with the highest average prices at €4,241 per square meter, followed by the Balearic Islands at €4,101 per square meter and the Basque Country at €3,489 per square meter.
In the fourth quarter, 132,385 mortgages were registered, representing a 7.2% quarterly increase and accounting for 74.3% of all home sales. Year-to-date, 498,500 mortgages had been recorded, up 14.5% from 2024. The average mortgage debt rose to €1,763 per square meter, reflecting a 13.9% annual increase.
Despite these positive indicators, the Registrars caution that the current market dynamics may not be sustainable indefinitely. They cite factors such as population growth, an increase in household formation, and a shortage of supply—all contributing to rising prices. However, concerns remain that continuous price growth could eventually lead to a slowdown in real estate activity.
Image credit: www.idealista.com
Source: www.idealista.com.
Curated by Fuerteventura Times Real Estate Desk.
