Mark Stücklin
Foreign demand for Spanish property hit a new all-time high in the first quarter of 2025.
According to the latest data from the Spanish Land Registrars, there were 21,525 home sales involving foreign buyers between January and March, the highest Q1 figure on record. That’s more than in the post-Covid boom years of 2022 and 2023, but this time there’s no lockdown overhang or other distortion—just strong, organic international appetite for Spanish homes.
Rather than returning to pre-2020 norms, the market appears to have shifted up a gear. The foreign market share (FMS) averaged 12.6% before the pandemic. Since 2021, it’s been closer to 14%, and in Q1 this year it was 14.1%—near the all-time high.
I’d expected the market to settle after last year’s dip, but the soft landing never bedded in. Foreign sales rose 19% year-on-year in Q1, while local demand was also up 20%. Compared to the ten-year average, foreign demand is up 50% versus a 40% gain for locals.
Who’s buying?
The British remain the biggest group with 2,110 purchases, followed by Germans (1,626), Dutch (1,549), and the French (1,314), who’ve slipped from their usual top-three spot.
The standout story is the Americans, who jumped 57% to 520 purchases—by far the strongest growth. The Dutch rose 36%, and even the British posted a 7% gain despite years of decline. The only major fall was Russia, down 6%.
Why the boom might last
So what’s driving the surge? Spain continues to offer sunshine, safety, quality of life and good value—all attractive as global instability grows. The Trump factor may be pushing more Americans to buy abroad, and a strong dollar in late 2024 helped too.
Falling borrowing costs also play a big role. The ECB has cut rates three times this year, and the Euribor is down 12%, making mortgages cheaper and boosting buying power across the board.
Clouds on the horizon?
Spanish politics could yet put a brake on things. Prime Minister Pedro Sánchez has floated the idea of banning non-resident, non-EU buyers—a move that would mainly hit Brits and Americans. So far it’s just talk, but if it went any further it could do serious damage to the market.
Then there’s the power grid. The nationwide blackout a few weeks ago, reportedly caused by over-reliance on renewables, brought the country to a standstill. If it happens again it could undermine investor confidence and destabilise the market.
For now, though, the fundamentals remain strong. Spain looks like a safe haven in a chaotic world, and buyers—both foreign and local—are betting that will continue.
