The British market for homes in Spain
Annual reports on the Spanish property market segment involving buyers from the United Kingdom, giving you a quick overview of the key trends each year and how British demand compares with other major international markets for residential real estate in Spain.
2024 Full Year
The UK market overview: British demand for Spanish property in 2024
This report provides an overview of British demand for Spanish property during the full year of 2024, using data primarily sourced from the Association of Spanish Notaries. It examines total sales, trends by residency status, expenditure patterns, and foreign market share. The report also places UK buyer activity in a broader international context and explores key economic and regulatory factors affecting demand. Designed for property professionals, investors, and market observers, the analysis offers insights into how the UK market segment has evolved and where it may be heading.
Sales performance
In 2024, British buyers purchased a total of 11,912 Spanish properties (Fig. 1). This represents a marginal annual decline of 4% compared to the previous year, and a 11% decrease when compared to the ten-year average. Despite maintaining its position as the largest group of foreign buyers in Spain, the British market continued a downward trend last year that really started back in 2015.
This performance reflects a continuation of a longer-term decline that began after the Brexit referendum, further influenced by structural and economic limitations that capped buyer interest from the UK. As shown in subsequent sections and figures, market dynamics within the British segment reveal diverging trends depending on buyer type: foreign non-residents versus British expatriates already living in Spain.
Sales by residency status
Breaking down the market by residency status provides further insight into underlying trends (Fig. 2).
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Foreign non-residents (FNRs) accounted for 7,161 of the purchases by British buyers in 2024.
- This marks a year-on-year decline of 3%.
- Compared to their ten-year average, sales among this group are down 17%.
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British expatriates living in Spain purchased 4,751 homes.
- This represents a steeper year-on-year decline of 6%.
- However, when viewed in a longer-term context, sales in this group are actually up 2% compared to their ten-year average.
The contrasting trajectories of these two groups are further illustrated by the ten-year indexed sales trend (Fig. 3), which uses a base value of 100 from ten years ago to track relative performance over time. The overall UK and FNR indices are heavily down, whilst the expat index is slightly up.
- The overall British market index decreased from 100 to 75 — indicating a 25% decline in total sales from British buyers over the last decade.
- The FNR index has fallen more significantly from 100 to 63, highlighting a 37% fall in this group’s purchasing activity.
- In contrast, the expat index rose to 104, showing a modest 4% increase over ten years. So more British expats in Spain are buying today than ten years ago.
For readers unfamiliar with index interpretation: an index measures relative change over time, with a base value (usually 100) set at the starting period. A value above 100 indicates growth since the start date, while a value below 100 shows contraction.
This data suggests that expats have become a more stable and even slightly growing segment of British demand, while non-resident buyers—once the dominant group—have declined sharply, contributing significantly to the overall drop in British sales.
Foreign market share (FMS)
The British foreign market share (FMS) of Spanish property sales in 2024 stood at 8.6%, down from 9.1% the year before (Fig. 4). This ongoing erosion in market share continues a trend observed over the past decade.
In the last ten years, the UK’s FMS has declined significantly. At its peak, British buyers accounted for 21.9% of all foreign purchases in Spain. The current 8.6% share is the lowest on record, highlighting how far British market dominance has retrenched since its pre-Brexit highs.
Expenditure trends
In terms of average expenditure, British buyers paid €2,271 per square metre in 2024. This reflects a slight increase of 10% compared to 2023. Despite falling transaction volumes, this price trend signals that the British buyers still active in the market are purchasing comparatively high-value properties, possibly targeting more upmarket or second-home segments.
Relative performance
The final three charts presented in this report compare key metrics across nationalities:
- Total sales volume by nationality
- Year-on-year change in sales by nationality
- Foreign market share for all nationalities
These visualisations provide comparative context, helping to assess the UK’s performance in relation to other important foreign markets in Spain. Readers can use these charts to gauge how British demand measures up against other nationalities in terms of strength, direction, and market share.
Market drivers
Several drivers contributed to the decline in British demand in 2024:
- Economic uncertainty in the UK: 2024 saw a sluggish economic recovery from recent downturns, with persistent inflation squeezing household budgets. These conditions hampered the ability and appetite of British buyers to invest in overseas property, leading to reduced demand.
- Brexit-related restrictions: Mobility limitations stemming from Brexit continued to have a major impact. British citizens are now subject to the 90/180-day rule within the Schengen Area, restricting the use of second homes in Spain and weakening lifestyle-driven purchases from non-residents. Before Brexit, UK nationals enjoyed unrestricted travel within the EU, making second-home ownership in Spain significantly more attractive and convenient.
- Currency fluctuations and logistical frictions: On top of legal changes, Brexit has introduced administrative friction, including complications tied to taxation, healthcare access, and long-stay visa requirements. These have added cost and complexity, particularly for retirees and long-stay visitors.
Combined, these factors have significantly reduced the attractiveness of Spanish property for British buyers, especially non-residents who once formed the bulk of demand.
Conclusion
In 2024, the British market for Spanish property continued its gradual contraction, with total transactions falling 4% year-on-year and 11% below the ten-year average. The largest drop came from non-resident buyers, reflecting the dampening effect of Brexit on second-home purchases and seasonal use of Spanish property.
Expat demand remains far more resilient, even exceeding ten-year trends slightly. This divergence suggests that lifestyle changes among permanent residents – such as retirees or long-term British migrants – are more stable motivators of property demand than the discretionary purchases of holiday homeowners.
Despite these challenges, British buyers continue to spend relatively heavily, suggesting that while their numbers have dropped, their purchasing power remains high.
Looking forward, any recovery in British demand will likely depend on:
- Loosening mobility restrictions or improved legal pathways for long-stay property use
- Improved economic sentiment and personal finances in the UK
- Greater clarity and simplification around post-Brexit administrative processes
Unless these headwinds are addressed, the UK's role in the Spanish property market is likely to remain diminished relative to the highs of the last decade.
2024 H1
The British market for Spanish property in the first half of 2024
This report provides an in-depth analysis of property purchases in Spain involving British buyers during the first half of 2024. Using key metrics and trends, it explores the performance of this important foreign market and highlights insights relevant to both industry professionals and property investors.
Key findings
During H1 2024, Spanish property purchases involving British buyers totalled 5,864 (Fig. 1). This represents an annualised decrease of -7.14% compared to the same period last year and a -8.71% decline relative to the ten-year average.
Breakdown by residency status
British buyers fall into two categories: foreign non-residents (FNRs) and expats living in Spain. The data for H1 2024 is as follows (Fig. 2):
- Foreign non-residents: 3,480 purchases, down -5.33% year-on-year and -15.25% compared to the ten-year average.
- Expats living in Spain: 2,384 purchases, down -9.66% year-on-year but up 2.87% compared to the ten-year average.
These trends highlight diverging dynamics within the market, with expats showing relative resilience compared to non-residents. This may reflect lifestyle motivations or a stronger attachment to Spain as a permanent home.
Ten-year index of sales
A ten-year indexed comparison further illustrates these trends (Fig. 3):
- Overall sales index: Down from 100 to 81.91.
- FNR index: Down to 69.61.
- Expat index: Up to 110.37.
An index measures relative performance over time, with 100 representing the base year. These figures show that while demand from British non-residents has significantly declined, purchases by expats have grown. This may reflect demographic changes, Brexit effects, or lifestyle priorities among British buyers.
Foreign market share
The foreign market share (FMS) of British buyers was 4.22% in H1 2024, compared to 4.62% a year earlier (Fig. 4). This represents a decline from a historical high of 9.84% to the current level. Such reductions may indicate shifting priorities among British buyers or increased competition from other foreign markets.
Expenditure trends
British buyers spent an average of €2,271 per square metre, marking a year-on-year increase of 9.76%. This suggests that while the volume of sales has declined, investment per property remains robust, perhaps reflecting a focus on higher-quality or more expensive homes.
Comparison with other foreign markets
The final three charts included in this report provide a comparison of British demand to other foreign markets in terms of:
- Total sales.
- Year-on-year changes.
- Market share of each nationality.
These visuals offer a broader context for understanding the UK’s position relative to other key international buyers in Spain.
The role of British buyers in the non-EU foreign non-resident market
Looking specifically at the market for second homes and investments in Spain purchased by foreigners officially resident outside of the EU, this segment accounted for a total of 9,166 purchases during H1 2024. These buyers represented 31.6% of the overall market for foreign non-residents (FNRs), which totalled 29,023 sales during the period.
The British market made a significant contribution to this segment, with 3,480 sales, equating to 38% of all purchases by non-EU foreign non-residents. This demonstrates the continued importance of British buyers in this particular market, despite broader economic challenges and shifting government policies.
Overall, British buyers accounted for 12% of all foreign non-resident purchases during the period and 5% of the total foreign property market in Spain.
Potential policy impacts
It is worth noting that in January 2025 the Spanish government has identified non-EU foreign non-residents purchasing second homes as a speculative segment and has expressed intentions to discourage such activity by applying punitive taxes. This policy shift could have significant implications for British buyers, given their substantial representation in this segment.
For more information on these proposed changes, visit Non-EU FNR buyer tax.
Final thoughts
The data highlights the critical role British buyers continue to play in the Spanish property market, particularly in the non-EU foreign non-resident segment. However, potential regulatory changes targeting this group could influence future demand patterns. Real estate professionals and investors should monitor these developments closely to anticipate their impact on the market.
