Foreign investment

“We need to attract foreign capital; domestic funds alone won’t meet current demand,” said Q Living CEO Rosa Gallego at a conference on the housing crisis organised by the Madrid Association of Economists.

Spain’s property market continues to attract a significant number of British and Irish buyers, with new data from leading homebuilder Taylor Wimpey España shedding light on buyer trends over the past two years.

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.

According to the latest Colliers report, Europe now hosts seven of the world’s top ten destinations for foreign investment in commercial real estate. Amid growing geopolitical uncertainty, investors are favouring safer, more stable markets, making Europe the leading global region, surpassing North America and Asia-Pacific. Spain has risen three spots since Q1 2024 to rank fifth worldwide, entering the global top five for the first time.

Germans are playing an increasingly prominent role in the Spanish property market. In 2024, they were the third-largest group of foreign property buyers in Spain and also ranked third in terms of the highest average purchase prices.

Foreign demand for second homes in Spain remains strong, with 51,800 sales in 2024, highlighting Spain’s appeal as a secure, attractive investment amid global inflation and geopolitical uncertainty.

The Spanish housing market remains firmly on the radar of international investors, although affordable rentals have taken a back seat. The spotlight is now on housing projects intended for sale.

The Costa del Sol is playing a key role in the transformation of the Spanish property market. Once mainly a holiday spot, it is now one of the most dynamic and desirable areas for both investment and living, especially among foreign buyers. This change is driven by its climate, the rise of remote work, global mobility, and Málaga’s air links to over 140 destinations.

Valencia’s historic centre is increasingly popular with international buyers. According to Engel & Völkers, 66% of the property sales the agency handled in Ciutat Vella during Q1 2024 involved foreign purchasers. In total, the firm completed 57 sales in the area – a 39% rise compared to the same period last year.

Foreigners bought more homes in Spain in the second half of 2024 and paid record prices.

The purchase of homes by foreigners in Spain reached nearly 93,000 transactions in 2024, a record figure never before seen in the country, according to quarterly data from the Registrars, compiled by idealista/news.

The European Commission has confirmed in a letter to the government of Andorra that it may include provisions in the association agreement to limit the acquisition of real estate by non-residents, similar to the system in Malta, specifically targeting second homes.

Spain’s property market is witnessing a significant shift, with demand for newly constructed homes far outpacing that for older properties. According to recently published Q4 2024 figures from Spain’s Association of Registrars, sales of new homes surged by 21.6% year-on-year.

The purchase of second homes by foreigners, particularly along the Mediterranean coast, continues to rise, with a significant number of buyers choosing Catalonia for its prime location.

Spain’s luxury property market is thriving in 2025.

The President of Spain, Pedro Sánchez, has proposed a tax increase of up to 100% of the property's value for non-EU buyers who are not residents of Spain.In response to this proposal, the American real estate network Keller Williams anticipates a 6% decline in property sales along the Spanish coast,

Foreign homebuyers have completed 30.7% more property transactions than in 2019, nearly double the 17.7% increase recorded by Spanish buyers during the same period.As a result, foreigners purchased 125,857 homes in the first nine months of 2024, accounting for 18.4% of total transactions, according

Spain has long been a favourite destination for foreigners and expats seeking sunshine, culture, and a laid-back lifestyle. Its vibrant cities, picturesque countryside, and stunning coastline offer something for everyone. But what makes owning a luxury villa in Spain such a wise choice?

Spanish Prime Minister Pedro Sánchez's announcement of new measures to restrict property purchases by non-resident, non-EU foreigners has drawn significant attention, particularly among British nationals – who rank among the country’s primary property buyers. The proposed measures include a substantial increase in the tax burden, reportedly up to 100% of the property’s value. The news has featured prominently in major British newspapers, including The Financial Times, The Guardian, and The Telegraph, becoming one of the most widely read stories on the subject.

Spain is planning to impose a tax of up to 100% on properties purchased by non-residents from countries outside the European Union, such as the United Kingdom.

The profitability of the luxury sector in major US cities such as New York, San Francisco and Miami is declining, prompting prominent investors from North America to explore alternative cities for their projects.

Spain continues to attract foreign property buyers.

Real estate investment in Barcelona has shown signs of recovery during 2024, reaching a volume of €1.5 billion between January and September, according to data from CBRE, one of the leading real estate consulting and services firms globally. This figure represents a growth of 12% compared to the same period in 2023, although it is still 12% below the last decade's average.

Spain is one of the countries that attracts the most foreign direct investment.

Alicante is on the rise in Spain’s luxury real estate market. We're looking at how Alicante is positioning itself as a key player in the luxury real estate market in Spain, as this phenomenon is driven by a combination of factors that have made Alicante an attractive destination for affluent buyers, both nationally and internationally.