Foreign buyers purchased 13% fewer homes in Spain in the first half of 2026, with holiday-home demand falling even faster. But after a record-breaking 2025, the latest figures suggest a market cooling down rather than falling off a cliff.

The latest figures from Spain’s Housing Ministry show that 353,557 homes were sold in the first half of the year (H1), down 7.1% compared to the same period last year. These figures are based on transactions completed before notaries, providing a timely picture of how the market is performing, particularly when it comes to foreign demand.

Foreign demand falls faster than domestic demand

Foreign buyers purchased 57,595 homes in H1, down 12.6% year-on-year, compared to a 6.1% decline in purchases by Spanish buyers.

Foreign non-residents (FNRs) — predominantly holiday-home and second-home buyers — led the decline, with purchases falling 17% to 22,610 transactions. Foreign residents living in Spain, or expats, reduced their purchases by a more modest 9.6% to 34,985.

As a result, foreign buyers accounted for 16.3% of the market (FMS), down from 17.3% in the same period last year.

There was, however, one encouraging sign. Total foreign purchases declined by 14.6% in Q1 but by a smaller 10.7% in Q2, suggesting that the market might have started to recover as the year progressed. That would bode well for the second half, although it’s not necessarily consistent with what I’m hearing from estate agents on the ground.

Holiday-home demand weakens across Spain

Looking specifically at foreign non-resident buyers, the segment most relevant to holiday-home markets popular with northern Europeans and other international buyers, the picture is uniformly negative but with some important regional differences.

All the major foreign holiday-home destinations recorded double-digit declines in FNR purchases in H1, with Madrid down 44% and Catalonia down 24%. Madrid’s percentage decline is dramatic, though its relatively small FNR market limits the wider impact.

Andalusia, home to the Costa del Sol, performed best, with purchases down 14% in H1 and just 2% in Q2. That suggests a significant improvement as the year progressed.

Elsewhere, the picture was less encouraging. FNR demand in the Balearics, Canaries and Catalonia continued to decline by more than 20% in Q2. The Valencian Region and Murcia also recorded substantial falls.

In other words, there are signs of stabilisation in some markets, particularly Andalusia, but no convincing evidence yet of a broad recovery in foreign holiday-home demand.

A soft landing after a record year?

The important context is that 2025 was the strongest year on record for Spanish home sales, and the first half of 2026 was still the second strongest. So, despite all the red figures, we’re not looking at a market slump. At least not yet.

A soft landing after an extraordinary post-pandemic boom is a more reasonable interpretation of the data.

Nevertheless, the market faces some significant headwinds. Rising house prices have stretched affordability, whilst limited supply continues to restrict choice. Higher interest rates, increasing Spanish political and regulatory risk, and growing geopolitical uncertainty all threaten to dampen demand further.

The question is whether 2025 will turn out to have been the peak of this cycle, with 2026 marking the beginning of a downward shift in gear.

For owners thinking of selling in the next couple of years, that possibility is worth taking seriously. Market conditions remain relatively favourable for sellers, but they might not get any better. Indeed, they could easily deteriorate.

If you’ve already been considering a sale, this might be a sensible time to turn that intention into a plan, whilst demand remains historically strong and prices are still high.

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