The Spanish real estate market continues to draw a surge of international investors, solidifying its role as a cornerstone of the national economy amid post-pandemic recovery and macroeconomic stability. While transaction volumes have shown a slight slowdown compared to previous peaks, foreign demand maintains steady growth, driven by the digitalization of purchasing processes, the pursuit of sustainable properties, and the diversification of buyer profiles. According to recent projections, the residential real estate sector is expected to reach a value of US$5.90 trillion in 2025, with the broader real estate market at US$7.38 trillion, reflecting a compound annual growth rate of around 4-7% through 2030. This evolution not only highlights the market’s resilience but also underscores emerging regulatory challenges, such as the elimination of the real estate investment option in the Golden Visa program on April 3, 2025.
Key Factors Driving Spain’s Appeal
The blend of an enviable climate, efficient transportation network, and competitive prices relative to other European destinations remains the primary magnet for foreign buyers. In 2024, Spain’s GDP grew by 3.2%, surpassing the eurozone average of around 1%, which has bolstered investor confidence. Additionally, interest rate cuts by the European Central Bank have eased mortgage access, leading to a 5% uptick in sales to foreigners in the second quarter of 2024.
Experts note that over 90% of luxury properties are sold to non-residents, a trend holding steady into 2025. However, new fiscal measures, such as proposals for a 100% property value tax on non-EU buyers, could temper this enthusiasm, though they affect only a small fraction of total transactions (about 1-2%). Despite this, interest in properties with high energy certifications (A or B) has risen by 20% in the first half of 2025, aligning with global sustainability trends.
In the year up to the first quarter of 2025, foreigners acquired approximately 93,000 homes, accounting for 15-20% of total operations—a historical high that exceeds 2019 figures by 38%. This surge is fueled by net migration and job creation, with around 400,000 new positions projected for 2025.
Evolving Profile of the International Buyer
Foreign investors are no longer limited to European retirees; the profile has rejuvenated, with 30% of buyers under 45 years old, many being remote entrepreneurs or families seeking work-life balance. Their purchasing power is evident: the average price per square meter paid by non-residents reached €3,063 in 2024, a 38% increase over five years, compared to €1,713 for national buyers.
These purchases focus on mid-to-high-end properties emphasizing energy efficiency, smart spaces, and amenities like heated pools or home offices. Digitalization has streamlined this: 40% of 2025 transactions begin with virtual tours, ideal for transatlantic buyers. Moreover, 66.9% of prime segment sales (properties over €2.5 million) involve internationals, with a 7% rise in available listings.
| Feature | Foreign Buyers (2025) | National Buyers |
|---|---|---|
| Average Age | 42 years | 48 years |
| Average Price per m² | €3,063 | €1,713 |
| Sustainability Preference | 75% seek A/B rating | 45% |
| Primary Motivation | Investment/vacational (60%) | Residential (80%) |
Geographic Origins: Accelerated Diversification
The landscape of nationalities has fragmented, moving away from post-Brexit British dominance. The UK holds a 15% share but has yielded ground to Morocco (11.75% annual growth, with 10,512 purchases in 2024) and Poland (from 0.7% pre-pandemic to 4.7% now). Germany and France are closing in on the British, with about 7,000 Germans buying in the Balearics and Canaries.
Outside Europe, the US stands out with 10.4% of foreign purchases in 2024, becoming the top investor in regions like the Basque Country and Galicia, thanks to tourism growth (94 million visitors in 2024) and a strong dollar. Latin America, particularly Argentina and Colombia, accounts for 1% of operations, focused on Madrid.
In the first half of 2025, 64,375 sales involved foreigners—the second-best historical record—with 17.1% from non-EU Europeans and upticks from Ukrainians and Moroccans.
| Nationality | Share (%) 2020-2024 | Annual Growth (2024) | Preferred Regions |
|---|---|---|---|
| UK | 15 | -5% | Andalusia, Valencia |
| Morocco | 8 | +11.75% | Costa del Sol |
| Germany | 12 | +6% | Balearics, Canaries |
| USA | 10 | +15% | North (Basque Country) |
| Poland | 4.7 | +20% | Madrid, Catalonia |
Hot Zones and Property Preferences
The Mediterranean arc (Costa del Sol, Blanca, and Cálida) leads with a 38.4% foreign share in Malaga and 37.8% in the Balearics. However, the north and rural areas are gaining traction, with 24% of provinces seeing over 2% quarterly price growth. Madrid and Barcelona remain strong, but Seville and Valencia are emerging as affordable alternatives.
Buyers seek authenticity: villas with eco-gardens, domotics systems, and proximity to tech hubs. In 2025, 20% of properties incorporate AI for energy management, appealing to millennials. Supply-demand imbalance persists, with modest increases in new builds driving annual prices up 4%.
In this context of high international demand, especially on the Costa del Sol—one of the most coveted areas by Brits, Germans, and Americans—local agencies experienced in cross-border deals become essential allies for sellers. Ríos Espinosa Inmobiliaria, with over 39 years of expertise since 1985, positions itself as an ideal partner to maximize your property’s value in premium spots like Marbella, Estepona, Sotogrande, and Seville. The agency provides comprehensive sales services, including initial pricing assessments tailored to international demand, multilingual promotion on portals and social media (in Spanish and English), professional photography and home staging, as well as full management of viewings, negotiations, and legal-fiscal closure with their in-house team of lawyers and economists.
What sets Ríos Espinosa apart is its focus on both national and international buyers, streamlining processes for foreign investors and offering a 20% discount on fees for exclusive sales. If you’re a property owner on the Costa del Sol looking to capitalize on the foreign demand boom for a quick sale at the best price, contact with us in our Real Estate page, or call 952 89 09 29 for a free valuation. This way, you can directly connect with the expanding global market of buyers seeking quality of life and returns in Spain.
Challenges and Opportunities for 2025
Despite the optimism, regulations like the 12 measures announced in May 2025—including curbs on tourist apartments and fiscal incentives for rentals—could affect profitability. Nonetheless, the market adapts: 13% of sales are second homes, and projections of over 100 million tourists in 2025 will sustain demand.
In summary, Spain positions itself as a safe haven for global investors, with an expanding market prioritizing innovation and sustainability. For those looking to enter or sell, 2025 presents opportunity windows before regulatory pressures intensify. If you’re considering offering your property to the international market, platforms like Ríos Espinosa can be the perfect bridge to qualified buyers and successful transactions.
