Mark Stücklin
A sharp drop in non-resident foreign buyers is the standout story in Spain’s latest housing figures published by the Spanish Housing Ministry, though the segment is still bigger than before the pandemic.
Foreign demand for Spanish property took a step back in 2025—but not across the board. The big shift came from foreign non-resident (FNR) buyers, who typically purchase second homes on the coast.
FNR purchases fell by almost 10% year-on-year to 51,411 transactions, the lowest level in four years. These are mainly buyers from northern Europe—Brits, Germans, Dutch—drawn by lifestyle, climate, and investment potential. Their retreat is the most notable change in the latest data.
The wider market remains strong
Set against this decline, the broader market held up well.
According to the latest figures from the Housing Ministry, total home sales reached 752,098 in 2025, up 5% on the year and around 30% above the ten-year average.
Foreign buyers still accounted for a significant share, purchasing 126,981 homes—around 18% of the total, and down 2% year-on-year. But the composition of that demand is shifting.
Expats rise as lifestyle buyers fall back
While FNR demand dropped, foreign resident buyers—expats—moved in the opposite direction.
Expats purchased 75,570 homes in 2025, up just over 4% year-on-year, and now account for almost 60% of all foreign transactions. This group includes many economic migrants from countries such as Morocco, Romania, and across Latin America.
These buyers tend to operate in a different segment to FNRs—typically lower price brackets and urban or suburban locations—meaning their growing presence reflects a different kind of demand.
What’s behind the drop in FNR demand?
A near 10% decline in non-resident buyers is hard to ignore, especially given the strength of the post-pandemic boom in second-home purchases.
One likely factor is political signalling. The Spanish government has floated proposals to penalise or tax non-EU FNR buyers—widely seen as targeting British and American purchasers. Even if no concrete measures have been implemented, the message may have unsettled some buyers.
At the same time, policymakers continue to blame foreign buyers for pushing up house prices. In reality, FNRs tend to buy in coastal and lifestyle markets that often have limited overlap with local demand.
If anything, upward pressure in entry-level housing is more likely to come from rising demand among economic migrants, whose numbers are increasing and who compete more directly with local buyers. The Spanish government is encouraging this immigration whilst blaming FNRs for its impact on housing access.
Still above trend—and reasons for optimism
Despite the decline, FNR demand remains strong in historical terms.
Purchases are still above the ten-year average, around 20% higher than in 2016, and comfortably above pre-pandemic levels, when annual sales were closer to 40,000.
Looking ahead, global uncertainty may even work in Spain’s favour. Ongoing tensions in the Middle East are affecting competing destinations like the UAE and Cyprus—potentially nudging some internationally mobile buyers towards Spain instead. It will be an interesting year for the Spanish holiday-home market.
