Foreign buyers are leading demand in Spain's ultra-luxury property market, accounting for 60% of total demand, according to Hiscox, which reports a 30% increase in prices over the past five years.
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According to the Luxury Housing Market Report in Spain 2026, commissioned by Hiscox and prepared by Catella, the sector is enjoying an "excellent moment" marked by strength and its growing appeal to high-net-worth individuals. The annual volume of transactions involving foreign buyers reached an estimated 130,000 deals in 2025.
Within this market, non-resident foreign buyers pay the highest prices per square metre, driven by their preference for prime properties and locations. This trend has fuelled a sustained rise in values, with luxury property prices increasing by 30% over the last five years, according to the report.
Balearic Islands, Málaga, Madrid and Barcelona
The Balearic Islands, Málaga, Madrid and Barcelona together account for 83% of all properties valued at more than €3 million in Spain, although the report notes a clear distinction between coastal and urban markets.
International demand is particularly strong in leading coastal destinations. In Benahavís (Málaga), 84% of luxury properties are purchased by foreign buyers, while in Andratx (Mallorca) they account for 79% of total sales.
Golden Visa withdrawal has "Virtually zero" impact
By contrast, the major urban centres present a different picture. In Madrid city, foreign buyers account for just 14% of transactions in the luxury segment, rising only slightly to 17% in nearby municipalities such as Alcobendas. This suggests that demand in Madrid's luxury housing market continues to be driven by a remarkably strong domestic buyer base.
The report also states that the removal of Spain's investment residency programme (the Golden Visa), which took effect on 3 April 2025, has had a "virtually zero" impact on market activity, as the scheme represented only 0.5% of total transactions.
"Investors in the luxury segment purchase properties based on lifestyle, security and residential quality considerations, with investment volumes that are typically well above the €500,000 minimum threshold previously required under the legislation," the report concludes.
