Mark Stücklin
A sudden drop in second-home buyers in 2025 is the kind of signal that makes vendors nervous—but what does it really mean if you’re trying to sell on the coast or islands?
The latest figures from Spain’s Housing Ministry show a near 10% fall in foreign non-resident (FNR) buyers in 2025—the lowest level in four years.
These are the classic holiday-home buyers from northern Europe, and for coastal and island markets they have long been the lifeblood of demand. So when their numbers fall, it naturally raises a concern: fewer buyers chasing properties like yours.
On the face of it, that suggests a softening market for second homes.
Context matters: the market is still strong
Before jumping to conclusions, it’s worth zooming out.
Total home sales reached 752,098 in 2025, up 5% year-on-year and well above the long-term average. Foreign buyers still purchased more than 126,000 homes, and demand remains structurally strong.
Even among FNRs, transactions are still above the ten-year average and significantly higher than pre-pandemic levels.
So this is not a collapse—it’s more a wobble.
A changing buyer mix
Another important shift is who is buying.
Foreign resident buyers—expats—actually increased their purchases and now make up the majority of foreign demand. But they tend to buy in different segments, often at lower price points and in different locations.
For sellers of coastal or island properties, that’s not a direct substitute for lost FNR demand. In other words, not all foreign buyers are interchangeable.
What’s behind the drop—and what comes next?
There are a few possible explanations for the dip in FNR demand.
Political messaging from the Spanish government about taxing or restricting non-EU buyers may have had a chilling effect, even if no concrete measures have been implemented.
At the same time, rising geopolitical uncertainty is likely prompting some investors to sit on their hands for now. From the war in Ukraine to renewed tensions around Trump and tariffs, ongoing conflict in the Middle East, and now what some are calling Gulf War III—too recent to appear in the data but almost certainly influencing behaviour today—there are plenty of reasons for caution. When the world feels unstable, discretionary purchases like holiday homes tend to be put on hold, at least in the short term.
In the short term, that likely means a “wait and see” mindset among some buyers.
Longer term, however, instability in competing destinations such as the Gulf could play to Spain’s advantage. For many buyers, Spain looks like a safer and more predictable place to park money and lifestyle.
So what should sellers do now?
If you’re trying to sell, the instinct might be to react—cut your asking price, rush to market, or change strategy.
The best advice right now? Don’t overreact.
It’s too early to say whether the dip in FNR demand is a temporary pause or the start of a trend. Markets rarely move in straight lines, and one year’s data doesn’t make a cycle.
Instead, focus on what you can control:
- Set realistic price expectations based on current demand
- Get your paperwork and due diligence in order
- Present your property properly
- Work with a competent agent who understands your segment
In a market with slightly fewer buyers, execution matters more than ever.
A window of opportunity for prepared sellers
There’s also a possible upside.
If some buyers are hesitating now—but expect competition to increase later (for example, due to geopolitical shifts)—they may choose to act sooner rather than later. That could create a window for well-prepared sellers to capture motivated demand.
The key is to be ready.
If you’re already selling—or thinking about it—now is the time to get your strategy, pricing, and paperwork lined up properly.
Thinking of selling a property in Spain?
I’m currently testing a new tool designed to help property owners prepare for sale and manage the process more effectively. It’s something I’ve been developing for readers of Spanish Property Insight, particularly those dealing with distinctive or hard-to-sell homes to help them navigate the Spanish sales process.
I’m looking for a small number of owners who may be planning to sell and would be interested in trying it out during the early testing phase.
If that might be you, leave your details below and I’ll get in touch.
