Record 71,000 Homes Purchased by Foreigners in Spain's First Half of 2025

Foreign Home Purchases in Spain Surpass 71,000 in H1 2025

In an unprecedented development, over 71,000 homes were bought by foreigners in Spain during the first half of 2025. This marks a 2% increase from the previous year, according to Idealista. This growth underscores the sustained strong demand in the luxury housing segments of Spain, with transactions exceeding 70,000 for the first time since late 2022. British buyers led the charge, but records were also set by American, Portuguese, and Italian buyers. Notable hotspots include the Valencian Community, the Balearic Islands, and Málaga, emphasizing Spain's appeal among international buyers despite rising prices and potential regulatory changes.

Foreign Buyers Paying Record Prices for Spanish Homes

The surge in foreign purchases has been accompanied by record-high prices. Foreign buyers paid an average of €2,417 per square meter in 2025, a 7.6% increase year-on-year, according to Idealista. Non-resident buyers paid even more, with average prices exceeding €3,100/m², marking an 8% increase from 2024. The highest average prices were paid 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). The willingness of foreign buyers to invest at these price levels highlights the enduring allure of Spain's diverse and scenic real estate market.

Foreign buyers paid an average of €2,417 per square meter in 2025, a 7.6% increase year-on-year

Valencian Community and Balearics: Hotspots for Foreign Investment

The Valencian Community, Balearic Islands, and Málaga have emerged as key hotspots for foreign property investment. In these regions, foreign buyers account for up to 40% of all property transactions, noted in a report by Barchart. The appeal is largely driven by the regions' attractive cost of living, economic stability, and the recovery of investment in second homes. The Costa Blanca coastline, particularly Jávea, is highlighted for its scenic beauty and value compared to other tourist hubs like Barcelona and Madrid. This ongoing trend suggests that these areas will continue to be magnets for international buyers seeking both investment opportunities and lifestyle enhancements.

Nationalities Leading the Charge in Spanish Property Market

British nationals remain at the forefront, accounting for approximately 7.9% of foreign home purchases in Spain in the third quarter of 2025, according to Barchart. Other nationalities showing significant presence include Germans (6.5%), Dutch (5.98%), and Italians (9.47%). The surge in interest is attributed to the diverse offerings of Spanish real estate, ranging from

British nationals remain at the forefront, accounting for approximately 7.9% of foreign home purchases in Spain

coastal retreats to vibrant city life. Recent data also indicates increased interest from Austrians, Danes, and Dutch, further diversifying the buyer pool. This underscores Spain's position as a prime destination for those seeking a blend of affordability and quality of life.

Government Policies and Potential Regulatory Challenges

The Spanish government, under Prime Minister Pedro Sánchez, has proposed measures that may impact future foreign investments. A controversial 100% tax on property purchases by non-EU foreigners has been suggested to curb the housing crisis, as reported by Al Jazeera. Such measures might deter some potential buyers, particularly in light of rising prices and ongoing economic stability concerns. However, the consistent interest shown by foreign investors indicates that Spain's real estate market remains resilient amidst these potential regulatory hurdles.

Future Implications for Spain's Real Estate Market

Looking ahead, Spain's real estate market is expected to continue thriving amidst the backdrop of rising prices and potential new regulations. Analysts project that international demand will persist, driven by the country's lifestyle appeal and investment potential. The anticipated regulatory changes, if implemented, may initially slow the pace of foreign purchases, but the inherent value of Spanish real estate is likely to sustain international interest. As noted in Forbes, regions such as Valencia continue to offer compelling opportunities for both lifestyle and investment, which could offset any negative impacts from proposed taxes or regulatory changes. The market dynamics into 2026 will hinge on how these factors balance out, but the enduring demand from diverse international buyers suggests a positive outlook overall.