The Spanish housing market is attracting interest from Americans
The Spanish housing market continues to show an increase in value, which does not diminish the interest of foreign investors. In fact, foreign buyers are actively considering Spanish property as a profitable investment and residential option.
The presence of foreign buyers in the market
According to Reuters, foreigners account for around 20% of property transactions in Spain. At the same time, they are often offered properties at a higher price. While the average cost per square metre for locals is EUR 1,713, it is EUR 2,362 for foreigners. Additionally, prices vary depending on the buyer’s citizenship:
– US citizens pay an average of EUR 3,390 per square metre;
– Swedes pay an average of EUR 3,295 per square metre;
– Germans pay an average of EUR 3,224 per square metre.;
– Norwegians pay an average of EUR 2,800 per square metre;
– Chinese buyers pay an average of EUR 2,160.
In 2024, foreign buyers completed over 139,000 property transactions. Although U.S. citizens accounted for only 2% of buyers, experts have noted a steady increase in their interest in Spanish property. Over the past five years, the number of transactions involving Americans has increased fourfold. Conversely, there has been a decrease in activity on the part of the British. Traditionally, UK citizens have held a dominant position among foreign buyers in Spain. However, over the past nine years, their share has fallen from 12% to 8.5%.
Overall, the number of transactions involving foreigners increased by 6% in 2024 compared to 2023. However, a decline was recorded for individual countries. The number of deals with British and German citizens fell by 2%, while the number of deals with French citizens dropped by 14%. Meanwhile, interest from Polish citizens increased significantly (by 36%). Analysts also noted increased activity among buyers from the Netherlands.
Spanish housing market trends
Spanish property prices are steadily increasing — they rose by 11% last year. At this rate of price rise, the local market ranks second in the European Union after Portugal.
Price growth is not only observed for the purchase of housing, but also for rent. This is causing concern among local residents. In April 2025, in the largest cities of the country held actions demanding reform of the property market. One of the main issues protesters highlighted was the rapid growth of short-term rentals. This reduces the availability of housing for long-term residence.
The Spanish government is taking steps to stabilise the situation. Key measures include:
1. Closing the Golden Visa programme.
2. Tightening the rules for short-term rentals, which are in place in a number of cities. For example, 43 neighbourhoods in Málaga have banned the registration of new flats for daily lettings.
3. Mandatory registration of all properties that are used for rentals.
4. Increased control over the operation of accommodation booking platforms such as Airbnb.
These changes reduce the attractiveness of Spanish property for investors, as rental yields are falling and demand is decreasing. However, experts say that the key problem in the property market is not the growth of the rental sector, but the low rate of construction.