Germany remains the pace-setter on the buying side, while the US leads the rental hunt. Here’s how the map looks for late summer 2025, plus where each group is most active and what it means for finding a home that fits your plans.
Foreign housing demand snapshot for August 2025
Foreign property buyers
Germans are still the leading nationality in Spain’s property purchases, accounting for 12.3% of foreign demand and holding the top spot since 2022. Over 90% of Spain's luxury homes are being bought by foreigners, and Germans are the most common foreign mortgage holders.
Sellers’ hotspots
The biggest shares of foreign demand in Spain are concentrated in the coastal and island provinces: Alicante (31.6%), Balearic Islands (30.6%), Málaga (26.3%) and Santa Cruz de Tenerife (25.2%). The Costa Blanca is a top choice for foreigners purchasing luxury homes.
Foreigner renters
Americans now rank first for rental demand, responsible for 10.1% of total foreign demand in 2025. The foreign market as a whole makes up 15% of rental demand this year. From 2022 to 2024, the leading renting nationality was Germany.
Where foreign renter interest is strongest
Alicante: 28% of the rental market is foreign. On listing visits, 27.4% come from abroad, led by the Netherlands (14%), Germany (11%) and the UK (9%).
Málaga: 26.3% of the rental market is foreign. A quarter (25.7%) of rental searches come from outside Spain, especially the UK (11%), Germany (10%) and the Netherlands (9%).
Balearic Islands: 25.8% of the rental market is foreign. Nearly a third of listing visits (29.1%) are from abroad, dominated by Germany (39%), with the UK (9%) and Italy (7%) well behind.
Santa Cruz de Tenerife (western Canary Islands): Foreign renters account for 21.9% of listing visits. Germans (23%) top Italians (19%) and the British (8%).
Other coastal draws: Las Palmas, Girona and Almería all see foreign visits above 15%, with interest spread across Germans, French, British, Italians and Dutch.
Major-city rental demand (who’s looking and where)
Valencia stands out among big markets, with 17% of rental listing visits coming from abroad, ahead of Barcelona (15.3%), Madrid (9.1%) and Seville (8.1%).
The United States drives the largest share of foreign visits in Valencia, Madrid and Seville (between 13% and 14%). In Barcelona, Americans are second (10%) behind the French (11%).
What this means if you’re American or German relocating to Spain
For American renters
Expect more competition in Valencia, parts of the Costa Blanca (Alicante), the Costa del Sol (Málaga) and island hubs, where foreign interest is already high.
- City choices: Valencia is the most active major market for foreign renter interest and already has a strong US audience. Madrid and Seville also show a meaningful American presence. Barcelona sees strong US interest, though it’s slightly behind French demand.
- Islands and coasts: If you’re eyeing the Balearics or the Canaries for a mid- to long-term stay, note the depth of foreign searches, which can push up prices and shorten listing windows in peak seasons.
For German buyers and renters
The German footprint is especially visible in island markets and along the Mediterranean, where winter sun, direct flights and established communities make settling in more straightforward.
- Buying: You’re still the largest foreign buying group nationwide. The most international for-sale markets are Alicante, the Balearics, Málaga and Santa Cruz de Tenerife, where stock and pricing are influenced by sustained cross-border interest.
- Renting: German searches dominate in the Balearics and rank strongly in Málaga and Santa Cruz de Tenerife. In Alicante, Germany sits just behind Dutch demand. If you’re planning a test-the-waters rental before buying, these areas offer depth and variety but also lively competition.
Quick tips for navigating high-demand areas
Before relocating, it's a good idea to update yourself on the cost of buying a house in Spain and the taxes and fees involved. Being familiar with the simple 'dos' and 'don'ts' when purchasing property in the country will also make the process easier.
- Timing: Late summer and early autumn see continued churn in coastal and island markets.
- Neighbourhood focus: In hotspots like Valencia and Málaga, narrowing to two or three districts speeds things up and keeps viewing days efficient.
- Budget realism: In places with high foreign activity (Balearics, Alicante, Málaga), sensible buffers for rent or purchase prices reduce frustration, especially near seaside zones.
This overview uses figures from the monthly residential market report for August 2025 provided by idealista/data.
For current local price trends, check the latest Spain price evolution pages for sale and rent, which are updated monthly.