Spain’s housing market sends shockwaves as foreign purchases plunge

For British residents dreaming of buying a home in the Spanish sunshine, the latest figures reveal a changing property market, where soaring prices appear to be putting the brakes on international demand.

New statistics from Spain’s General Council of Notaries show that foreign nationals bought 62,327 homes during the first six months of 2026. This was a 13 per cent decrease compared with the same period last year, marking the sharpest annual decline since the Covid-19 pandemic.

The figures, published on October 15, also reveal that international buyers are accounting for a shrinking share of Spain’s housing market, even as the cost of purchasing property reaches new records.

Foreign property purchases fall sharply

Foreign nationals accounted for 18.3 per cent of all property transactions in Spain between January and June 2026.

This compares with 19.2 per cent during the first half of 2025 and 20.3 per cent in 2024, highlighting a continued decline in international demand.

The slowdown was particularly noticeable among non-residents, who are often associated with holiday homes and second properties.

This group completed 22,940 purchases, an 18 per cent fall year-on-year and the lowest number recorded in five years.

Foreign residents also reduced their activity, with purchases falling by 9.7 per cent to 39,387.

The figures suggest that the appeal of owning a Spanish property remains strong, but increasingly expensive homes are making the market more difficult to access.

Property prices continue to break records

Despite fewer international buyers entering the market, prices are moving in the opposite direction.

The average price paid by foreign purchasers reached a record €2,644 per square metre during the first half of 2026, representing a 9.4 per cent increase compared with the previous year.

Non-resident buyers paid considerably more, averaging €3,493 per square metre, compared with €2,102 for foreign residents and €1,971 for Spanish purchasers.

Nationality also made a significant difference.

American buyers paid the highest average price, at €3,948 per square metre, followed by Swedish purchasers at €3,839 and German buyers at €3,763.

For British buyers, prices were also above the overall foreign-buyer average.

Balearic Islands among the hardest-hit markets

The slowdown was particularly noticeable in some of Spain’s most popular destinations for international property buyers.

The Balearic Islands recorded a 15.4 per cent decrease in foreign property purchases during the first half of the year.

However, the islands remained one of the country’s most expensive markets, with foreign buyers paying an average of €5,344 per square metre, up 9.3 per cent year-on-year.

The Valencian Community, another major destination for British residents and overseas property investors, also recorded a 15.4 per cent decline in foreign purchases.

Despite this, the region remained Spain’s leading destination for non-resident foreign buyers, attracting 9,250 transactions.

Foreign buyers paid an average of €2,240 per square metre in the Valencian Community, representing a 15.6 per cent annual increase.

The figures underline the growing gap between property prices and international demand, particularly in areas traditionally popular with overseas purchasers.

British buyers lose their position at the top

Another significant development is the changing nationality of foreign property buyers.

Moroccan nationals became Spain’s largest group of foreign purchasers during the first half of 2026, completing 4,960 transactions, equivalent to eight per cent of all foreign purchases.

British buyers ranked second, with 4,541 transactions, representing 7.3 per cent.

However, purchases by British nationals fell by 21 per cent compared with the same period in 2025.

Dutch, German and British nationals remained the most active groups among non-resident buyers, with the Dutch accounting for 12.6 per cent, Germans 11.8 per cent and Britons 10.4 per cent.

The changing figures offer a fresh insight into Spain’s evolving international property market, where overseas demand remains important but is no longer growing at the pace seen in previous years.

With prices continuing to rise in popular coastal destinations, prospective buyers face an increasingly expensive market, even as the number of international purchasers begins to fall.