As Fuerteventura continues to attract investors, the latest property trends in Spain illustrate its enduring appeal.
In the first half of 2025, over 71,000 homes were purchased by foreign buyers in Spain, marking a 2% increase from the previous year. This is the first time since late 2022 that transactions exceeded 70,000, reinforcing Spain’s status as a coveted residential and tourism destination. Although foreigners represent less than 20% of the overall market, they hold significant influence in the luxury segment.
Evolving Buyer Demographics
British buyers have historically been the dominant group but have shown a slight decline due to economic fluctuations and rising mortgage costs in the UK. Meanwhile, there has been a notable surge in buyers from the USA, Portugal, Italy, Morocco, Ukraine, Colombia, and the Netherlands. Chinese and other Asian investors are also increasingly targeting high-end properties in established locations, where prices typically exceed market averages.
In Madrid, American buyers are focusing on valuable central properties, while foreign purchasers generally gravitate towards Mediterranean hotspots and island regions, with a rising interest in northern locales. The Valencian Community, especially Alicante, leads in attracting foreign investments, followed by the Balearic Islands, Málaga, and Santa Cruz de Tenerife. Girona in Catalonia is also noteworthy, with foreign buyers accounting for 26% of all transactions.
Interestingly, Germans have surpassed Britons as the top nationality seeking mortgages, with the French now in third place.
Record Property Prices
Foreign buyers are paying record prices as of 2025, with an average cost of €2,417 per square meter, reflecting a year-on-year increase of 7.6%. Non-resident buyers are spending over €3,100 per square meter, up 8% from 2024, while resident buyers pay an average of €1,912 per square meter, still below the peak prices seen in 2008. The most expensive properties are being purchased by buyers from the USA (€3,465/m²), Switzerland (€3,457/m²), Sweden (€3,421/m²), Norway (€3,292/m²), and Germany (€3,270/m²).
Policy Changes and Future Outlook
Debate regarding the taxation of foreign buyers has intensified, yet no significant actions, such as doubling purchase taxes or limiting sales to non-residents, have been enacted. The termination of Spain’s ‘golden visa’ program in April 2025 has removed a significant incentive for high-value investments, but experts predict limited overall impact.
Additionally, the Spanish Tax Agency is stepping up monitoring of non-resident buyers to enhance transparency and combat irregularities in the property market.
Despite ongoing political discussions and potential regulatory changes, Spain continues to be an attractive market for foreign investors, thanks to its favorable climate, high quality of life, and relatively lower property prices compared to other major European nations. As we look ahead, the domestic property market is poised to remain a top target for international investment in 2026.
Image credit: www.idealista.com
Source: www.idealista.com.
Curated by Fuerteventura Times Real Estate Desk.
