idealista reports confirm that the luxury housing market in Spain is growing rapidly. One of the latest studies by the real estate platform highlights the increase in the supply of homes above €1.5 million, with 20% of these homes valued at over €3 million.
At the same time, foreign interest in buying luxury homes has risen in recent years. Certain areas across the Balearic Islands, Alicante and Málaga have seen demand from foreigners surpass 60% for high-end properties in Spain.
So, what type of luxury housing are foreign buyers seeking? According to the latest idealista report on foreign residential demand in Spain for the fourth quarter of 2024, 77% of the luxury housing stock nationwide on idealista consists of single-family homes, compared to the remaining 23% which includes flats, apartments and premium penthouses. Foreign demand for detached houses priced above €1.5 million accounts for 32.8% of the total demand, while 20.7% of the demand for high-end flats comes from abroad.
From villas in the Balearic Islands to luxury apartments in Madrid: this is how premium foreign demand is distributed
The Balearic Islands, Málaga and Alicante, together with Madrid and Barcelona, have the largest stock of luxury housing in Spain and significant foreign demand, especially in coastal tourist destinations.
In the Balearic Islands, 86% of the luxury housing stock consists of villas, with an average price of €3 million, compared to 14% of flats. Foreign demand for villas in the Balearic Islands accounts for nearly 52% of the total, more than half, while foreign interest in flats on the islands reaches 47.5%, making it one of the most prominent regions alongside Málaga.
On the Costa del Sol, 80% of the luxury housing available comprises single-family homes, with prices close to €3 million, and 49.7% of the demand originates from abroad. Of the remaining 20% of the stock, nearly 42% of the interest in apartments and penthouses in Málaga and the surrounding province comes from outside Spain.
Alicante is the third most popular destination for foreign tourists, where luxury single-family homes account for nearly all of the listings on idealista (96%), with average prices surpassing €2.3 million. Nearly half of the demand for high-end villas on the Costa Blanca comes from abroad (49.7%). For the remaining 4%, foreign demand is also notable, with 36.3% of the total.
Meanwhile, in Barcelona, the supply of luxury homes is more evenly distributed, with 61% comprising villas and 39% made up of luxury flats, apartments and penthouses. In this market, where Spanish demand is stronger, the proportion of foreign interest is more balanced, though it remains significant. Notably, 25.4% of the demand for luxury flats in the Catalan province comes from abroad, compared to 22.2% of the foreign demand for single-family homes.
In the province of Madrid, there has been a radical change in the distribution of luxury housing types, with 63% of the stock being apartments compared to 37% of villas spread across the region. Meanwhile, foreign demand does not have the weight that can be found in coastal areas, but there is a notable 14.3% foreign demand for the most expensive apartments, together with 12.1% foreign interest in detached houses.
Where foreign demand for luxury villas and apartments in Spain is soaring
The latest idealista report on foreign residential demand in Spain for the fourth quarter of 2024 also analyses the most notable residential areas where more than half of the demand comes from abroad, encompassing both types of luxury housing.
Among the 32 residential areas with high-end property prices that meet these criteria, the Balearic Islands stand out, with 14 neighbourhoods or districts spread across Mallorca and Ibiza. On the Costa del Sol, sought-after locations include Marbella, Estepona and Benahavís, while other notable areas include Altea in Alicante and Gavà in Barcelona.
With an average price of €2.15 million for single-family homes, the Dalt Vila-La Marina area in Ibiza attracts 72.9% of its demand from abroad. German, Dutch and British buyers show the most interest in purchasing villas here. They are also prominent among those seeking luxury apartments, which have an average price of €1.9 million.
Equally noteworthy is the 73.3% demand for apartments in Puerto de Andratx, Mallorca, where average prices reach €1.87 million. German, British and Swedish buyers show the strongest interest in both these apartments and the villas in the area, which command average prices of nearly €7.5 million. Up to 66.8% of the demand for these single-family homes comes from international buyers.
Another standout area is Peguera, in Calvià (Mallorca), where foreign demand accounts for 68.2% of apartment purchases, with average prices reaching €1.59 million. Meanwhile, 39.7% of those interested in villas are international buyers, with these properties averaging €4.25 million.
Beyond the most popular destinations in the Balearic Islands, where both housing types are in demand, there is also significant foreign interest in villas in Altea la Vella (62.4%), where average prices approach €2 million. For apartments in the area, which average €2.1 million, foreign demand reaches 50%, with German, Dutch, American and Belgian buyers leading interest.
Nueva Andalucía, in Marbella, is another area with strong international demand for both flats and villas. Foreign buyers account for 62% of demand for flats, which are priced at €1.8 million on average, while villas see 46.6% foreign demand, with prices close to €4 million.
Among the most sought-after luxury destinations, the highest prices are found in El Velerín, in the Málaga town of Estepona, where villas average €7.5 million. Interest is particularly strong among German, American and Dutch buyers, with 50.4% of demand coming from abroad. Meanwhile, foreign interest in flats stands at 45.5%, with prices averaging €2.19 million.
Also at €7 million are the villas in San Carlos, in Santa Eulalia del Río (Ibiza), where 58.2% of the demand is foreign, with Germans, Dutch and French in the lead. Flats in San Carlos are sold for an average price of €1.5 million and 56.9% of the demand comes from abroad.
