Soaring rents and fierce competition are pushing many people towards room rentals. On average, 22 prospective tenants compete for each listing on idealista, though demand remains lower than for full homes. Palma (65) and San Sebastián (62) record the most enquiries per room, while among the largest markets, Barcelona (22) edges ahead of Madrid (20).

Rental properties in the Balearic Islands (29.1%), Alicante (27.4%), Málaga (25.7%) and Santa Cruz de Tenerife (21.9%) are seeing strong international demand, each accounting for more than 20% of total rental interest in Q1, according to a study by idealista.

The British remain the largest group of foreign homebuyers in Spain, but interest is growing among citizens of other countries, including Germany, France, the Netherlands and Italy, particularly for properties on the Mediterranean coast, the main draw for foreign buyers.

Forty-nine of Spain’s 50 provinces have at least one home listed on idealista for over €1 million, though the distribution is highly uneven. Málaga, the Balearic Islands, Madrid, Alicante, Barcelona and Girona alone account for 84% of all such properties. In many provinces, with fewer than 22 listings, their share is so small that it rounds down to 0.0%.

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.