Foreigners are buying up luxury real estate in Spain

Luxury Property in Spain — Foreign Investors Dominate the Market

Spain has long been known for its warm climate, picturesque landscapes and high quality of life, making it one of the most attractive destinations for real estate investment. In recent years, the luxury housing market in this Mediterranean country has been experiencing a real boom, largely due to the activity of foreign buyers. According to recent studies, more than 90% of luxury property purchases in Spain are made by citizens of other countries. An analysis of the geography of foreign investors shows that 49% of luxury property buyers come from countries outside the European Union. Among them, citizens of Russia, China, the UAE, as well as Latin American countries — Mexico, Colombia and Venezuela — stand out. These countries traditionally represent large sources of capital, and their wealthy citizens are increasingly choosing Spain to diversify their investment portfolios and get the opportunity to spend time in the comfortable conditions of the Mediterranean climate. The remaining 43% of foreign buyers are Europeans, with the French, Italians, Greeks, Britons and Germans leading the way. For many of them, purchasing luxury property in Spain is not only a profitable investment, but also an opportunity to acquire a second home in a country with more favorable weather conditions and a relaxed lifestyle.

Factors that make Spain attractive to foreign investors

• Spain is becoming a global magnet for wealthy property buyers for a number of reasons. First of all, the country offers investment security and a stable economy, which is especially important in the current geopolitical conditions. In addition, Spain is known for its favorable tax regime for non-residents, including special visa programs for investors and the possibility of obtaining a residence permit when purchasing real estate for an amount of 500,000 euros.
• High quality of life is another key factor that attracts foreign buyers of luxury property to Spain. The country is famous for its warm climate, developed infrastructure, rich cultural heritage and excellent level of healthcare. All this makes Spain an ideal place not only for investment, but also for living, relaxing and working.
• Despite the significant increase in prices, the demand for luxury real estate in Spain continues to grow steadily. Over the past decade, the cost of premium housing in the country has increased by an impressive 75%, reaching 8,000 euros per square meter in the most prestigious areas. However, even such a significant increase in prices does not stop foreign investors, who still see excellent opportunities for preserving and increasing capital in the Spanish real estate market. The number of transactions with properties worth more than 3 million euros reached 8,000, which is 55% more than in previous years. These figures eloquently testify to the growing interest of wealthy foreigners in Spanish real estate and their willingness to invest significant funds in premium properties.

Geographic preferences of foreign investors

• Speaking about the geography of investments in luxury real estate in Spain, it is worth noting several key locations that are most popular among foreign buyers. First of all, these are the largest cities of the country — Madrid and Barcelona, ​​which attract investors with their cosmopolitan atmosphere, developed infrastructure and wide opportunities for business and leisure.
• The resort regions of Spain, such as the Costa del Sol coast (especially Marbella and Puerto Banus) and Costa Dorada, are no less in demand. These picturesque areas are ideal for those who dream of their own residence by the sea and want to enjoy the Mediterranean climate and a relaxed lifestyle. The growing popularity of the Marbella and Benahavis area, where the most significant growth in prices for luxury real estate is observed, deserves special mention.
• Another center of attraction for wealthy foreigners is San Sebastian — an exquisite resort town in the north of Spain, famous for its beaches, gastronomy and cultural events. This elegant and sophisticated city has long earned a reputation as a favorite vacation spot for the European aristocracy and creative intelligentsia.

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Forecasts and trends in the luxury real estate market in Spain

• Experts are unanimous in their forecasts for the further development of the luxury real estate market in Spain. In 2025-2026, prices for premium housing are expected to continue to grow, which will be facilitated by a number of factors. Firstly, high demand from foreign investors, which is likely to continue in the coming years. Secondly, a limited supply of luxury properties, especially in the most popular locations, which will support price growth. And finally, an increase in the share of buyers from non-European countries, in particular from Asia and Latin America, who are increasingly interested in the Spanish real estate market.
• In addition to general trends, a number of new trends are observed in the luxury real estate market in Spain, which will determine its development in the near future. One of them is the concept of “branded residences”, which involves the creation of exclusive residential complexes managed by famous hotel brands. Spain plans to build more than 1,200 such properties by 2027, which will make it one of the key players in this promising market segment.
• Another important trend is the growing demand for eco-friendliness and sustainability in luxury real estate. More and more buyers are interested in properties built using environmentally friendly materials and equipped with energy-efficient technologies. Such residences not only help to reduce the negative impact on the environment, but also allow for significant savings on operating costs.
• Digitalization is another trend that is gaining momentum in the luxury real estate sector in Spain. Wealthy buyers are increasingly giving preference to “smart homes” equipped with advanced automation and control systems. Such technologies provide maximum comfort and safety of living, and also allow remote control of all life support systems of the house.
• Finally, it is impossible not to note the growing demand for individualization and uniqueness in luxury real estate. Buyers of premium housing in Spain are increasingly looking for properties with an exclusive design, original architectural solutions and the ability to personalize to their tastes and needs. Developers and developers are responding to this trend, offering more and more customized projects and residences created in collaboration with leading architects and designers.

In conclusion, it is safe to say that the luxury real estate market in Spain is experiencing a period of active growth and transformation. High demand from foreign investors, a combination of a favorable climate, high quality of life, a stable economy and innovative projects make Spain one of the most attractive destinations for purchasing premium real estate in the world.
Despite significant price increases, the Spanish luxury housing market remains competitive compared to other popular international destinations. Moreover, experts predict a further increase in the cost of premium properties in the coming years, which makes investing in luxury real estate in Spain not only a prestigious, but also a financially profitable decision.

For potential buyers, the key factors for success will be choosing the right location that suits their lifestyle and investment goals, as well as focusing on properties with high potential for value growth. An important role is also played by taking into account tax incentives and special regimes for non-residents, which can significantly increase the profitability of investments in Spanish real estate. In addition, investors should closely monitor new trends in the market, such as “branded residences”, eco-friendliness, digitalization and individualization, which will determine the development of the elite segment in the near future. Timely response to these trends and the selection of objects that meet current market demands will allow not only to preserve but also to increase the invested capital.