Foreign holiday-home demand falls sharply across Spain

Foreign non-resident buyers – the holiday-home crowd – have sharply reduced their purchases across Spain, according to the latest Housing Ministry data.

After years of expansion and a post-pandemic buying frenzy, the trend has turned negative in 2025, and the pace of decline appears to be accelerating.

From slowdown to slide

Nationwide, foreign non-resident (FNR) purchases fell by 13.5% year-on-year in the second quarter (Q2), compared with a smaller decline of 3.7% over the first half as a whole (H1). That means the falloff gathered pace as the year progressed.

A glance at the chart shows the downturn is broad-based, affecting all the major foreign-buyer regions — Andalusia, Catalonia, the Valencian Community, the Canaries, and the Balearics — with the steepest quarterly drops in some of Spain’s most international markets. Madrid’s numbers also show a dramatic percentage fall, though it represents a small slice of total foreign demand.

Why is foreign demand cooling so quickly?

Several factors are likely at play. Prices in many coastal and island markets have risen sharply in recent years, while the supply of desirable properties has tightened, leaving buyers with less choice and less perceived value. After an extraordinary post-pandemic boom, the market may simply be normalising.

But sentiment also matters, and Spain’s political climate could be part of the mix. Prime Minister Pedro Sánchez’s public statements about taxing or restricting non-resident foreign buyers from outside the EU may have influenced how Spain is perceived abroad. Even if no concrete measures have been introduced, the rhetoric itself may be enough to give some buyers pause.

The cost of cooling confidence

While domestic demand remains strong, foreign second-home buyers are an important pillar of many regional property markets. The current slide, if it continues, could start to be felt in the real-estate sector and beyond — from construction and legal services to tourism-linked businesses.

After years of being one of Europe’s hottest property destinations, Spain may now be experiencing the flip side of a boom: fewer bargains, thinner supply, and a subtle shift in sentiment that’s cooling foreign enthusiasm.