Thirteen per cent of the homes sold through idealista in the second quarter of 2025 found a buyer in less than a week, according to a study by idealista, Southern Europe’s leading real estate marketplace.

The Balearic Islands, Costa del Sol and Costa Brava have long been Spain’s top destinations for luxury second homes, attracting wealthy foreigners seeking a getaway. Recently, Costa Blanca in Alicante has joined their ranks, with towns like Denia and Jávea offering a wide range of premium properties. According to Engel & Völkers, high-net-worth buyers from Germany, the Netherlands and Switzerland now see this region as one of their most exclusive options.

The property market in southern Europe’s three key countries continues to rise, with varying trends. According to idealista’s June report, Spain has hit record highs in both sales and rentals. Portugal remains the most expensive overall, though its price growth is more moderate. In Italy, sales prices are still below the peaks of over a decade ago, but rental prices have surged to historic highs, even surpassing Spain. We take a closer look at the property and rental markets in the main cities and top tourist areas of all three countries.

Property prices for resale homes in Spain have reached €2,391/m², the highest level recorded in idealista’s historical series.

When political noise takes priority over concrete housing policies, proposals like this tend to surface – in this case, a plan to limit the purchase of residential property in Spain by non-resident, non-EU foreigners.

Spain’s housing stock experienced a significant 16% annual decline, marking the steepest drop in recent years. The shortage is driven by rising demand, slow construction rates, and economic pressures, intensifying concerns over affordability and housing availability across the country.

The Socialist Parliamentary Group (PSOE) has introduced a bill aimed at promoting affordable rental housing.

Over the past year, the percentage of household income needed for housing rose to 23% for purchases and 36% for rentals, according to an idealista study based on Q1 2025 data.

Purchasing power has varied significantly across luxury housing markets since 2014, with "drastic shifts in purchasing power over the past decade," according to real estate consultancy Knight Frank's latest report, The Wealth Report 2025, on the luxury real estate market.

"It’s the economy, stupid." This phrase became famous during Bill Clinton’s successful 1992 presidential campaign against then-President George H. W. Bush. Since then, it has been widely used to highlight what is both obvious and essential.