PROPERTY SEARCH
English to the south, Germans on the islands: where are foreigners buying houses in Spain?
Last year, foreign buyers snapped up nearly one in five homes sold in Spain
Spain’s real estate market is experiencing a golden moment, driven not only by domestic demand but also by the interest of foreign buyers. While residents face mounting housing pressures that have sparked protests up and down the country, foreign buyers are diving into the market in growing numbers, chasing sun, sea and second homes. And depending on where you look, different nationalities are dominating the property landscape.
As ever, the British are leading the charge. They're the top foreign buyers across Spain, especially in the sun-drenched south, with hotspots like Murcia, Alicante and Andalucía seeing the highest share of UK-owned homes. Most of these buyers are not relocating permanently, but investing in holiday homes, drawn by year-round sunshine and relaxed Mediterranean living.
The same is true of the Germans, who tend to concentrate their investments in the Canary and Balearic Islands, where they account for more than half of all foreign sales. The British follow, albeit at a much smaller margin.
Meanwhile, in the north of Spain, it seems proximity is the name of the game. French buyers are choosing homes close to the border in regions like Catalonia, Navarra and the Basque Country, while Portuguese investors have carved out a niche in Extremadura and Galicia.
The latest figures from the Notarial Statistical Information Centre show that foreign buyers snapped up nearly one in five homes sold in Spain in 2024, totalling 139,102 transactions, a 5.9% increase from 2023.
Much of this growth came in the second half of the year, as falling interest rates from the European Central Bank gave the market a jolt.
However, this trend could be reversed if certain government plans go ahead to hike up taxes for foreign investors in a bid to halt property speculation.
But for the moment at least, foreign demand is driving the market, not least because people living outside Spain tend to spend more on property - €3,063 per square metre on average, compared to €1,795 among resident foreign buyers. Americans, Venezuelans and Colombians top the price-per-square-metre charts, with some paying more than €5,500 per square metre.
In Madrid, Chinese and American investors are making significant moves, representing 18% and 10% of non-resident purchases respectively. The capital is also one of the few places where Asian investors outnumber others, especially among non-residents.
Among foreign residents, Moroccans and Romanians stand out. They bought more than 8,900 homes combined in the second half of 2024, mirroring their position as the largest immigrant groups in Spain. While their investments are more widespread, they’re notably less present in regions like Galicia, Madrid and the islands, where other nationalities take the lead.
One surprising trend is that Ukrainians are making an increasingly visible mark. In Asturias, they’ve become the second-largest group of foreign resident buyers, accounting for 11% of transactions - a rise that tracks with the influx of refugees since 2022.
In the Valencian Community, which remains the top region for foreign purchases, nearly three out of every ten homes sold were bought by non-Spaniards. Dutch and Belgian buyers are particularly active here, coming in just behind the British and Germans.
Image: Notarial Statistical Information Centre
