Where Expats Are Buying Homes in Spain in 2025: Key Hotspots, Trends, and Buyer Insights

Record-Breaking Foreign Demand for Spanish Property in 2025

Spain’s property market is breaking records in 2025, with foreign buyers snapping up tens of thousands of homes and driving the strongest growth since before the pandemic. Recent data from Spanish registrars and notaries show that overseas purchasers now account for a historically high share of transactions, with more than 70,000 homes bought by non-residents in the first half of the year alone and foreign demand up on 2024. In coastal and island provinces such as Alicante, Málaga, the Balearic Islands and Santa Cruz de Tenerife, foreign interest can represent between a quarter and a third of all sales, pushing prices higher in the most desirable areas. For a deeper dive into the numbers behind this boom, see our news explainer on how foreign buyers are powering Spain’s 2025 property market.

Coastal and Island Regions Lead the Way

Alicante and Costa Blanca

This area continues to attract the highest percentage of international buyers, thanks to its vibrant coastal towns, established expat networks, and competitive pricing. Towns like Torrevieja, Jávea, Orihuela Costa, and Altea are particularly popular, offering a mix of affordable resale properties and stylish new builds. Buyers are drawn to the region for its year-round sunshine, accessible beaches, and excellent amenities. In 2025, the share of foreign purchases in parts of Alicante province is among the highest in Spain, with strong demand from Northern European and British buyers driving both sales volumes and rental potential.

Malaga and Costa del Sol

Known for its cosmopolitan vibe, Marbella, Estepona, and Mijas remain favorites among British, Dutch, German, and Nordic buyers. Aside from gorgeous coastline and luxury developments, Malaga’s busy airport and rich cultural life make it a primary choice for expats seeking lively communities and stable investment. Prices in prime areas have risen notably, and quick sales are common for homes with good rental potential. Recent data show Málaga as one of the top Spanish provinces for the number of foreign transactions, particularly in higher‑end segments close to the coast.

Balearic Islands

Mallorca, Ibiza, and Menorca each have a reputation for attracting European buyers searching for exclusivity, leisure, and high rental yields. While luxury clients flock to exclusive neighborhoods, families and professionals are also settling in up-and-coming areas with modern infrastructure. New regulations around rental licenses and zoning add to the appeal of securing compliant properties early. Foreign buyers account for a notably high proportion of sales here, with German, British and other EU nationals particularly active in both luxury and mid-market brackets.

Canary Islands

Tenerife, Gran Canaria, and Lanzarote offer an unbeatable climate, diverse landscapes, and relaxed living. Digital nomads, retirees, and long-stay visitors are among the rising wave of foreign homebuyers discovering the islands’ blend of affordability and holiday atmosphere. Provinces like Las Palmas and Santa Cruz de Tenerife now show foreign‑buyer shares well above the national average, confirming the islands’ growing appeal beyond purely holiday stays.

Valencia and Murcia

Drawing growing interest for their strong rental yields, these regions feature dynamic cities and hidden coastal gems. Valencia city is particularly known for its arts, booming tech sector, and affordable beachside living, while Murcia stands out for its sunny weather and laid-back charm. For many overseas buyers, these provinces offer a “value” alternative to better‑known hotspots, with lower average prices but increasing international demand along the coast.

What’s Driving the Demand?

Currencies and Investment Appeal

Global buyers are taking advantage of favorable exchange rates, stable mortgage conditions, and Spain’s reputation for lifestyle quality and affordable property. In coastal provinces where foreigners already account for a large share of purchases, this combination is keeping demand and prices resilient even as other markets cool.

Infrastructure and Services

Modern healthcare, international schools, and efficient transport links add practical value, making Spanish locations attractive not only for retirement, but for families and remote workers relocating permanently. Well‑connected regions such as the Costa Blanca, Costa del Sol and Valencia coastline particularly stand out for having airports, hospitals and services geared to international residents.

Visas and Legal Pathways

Streamlined digital nomad, golden visa, and non-lucrative visa options make Spain accessible for both short-term and permanent moves, with many buyers planning to spend extended periods in their new homes. These residency routes are especially relevant for non‑EU buyers from the UK, North America and other third countries who want a property that doubles as a base for long stays.

Rental Income and Investment Security

Coastal and urban hotspots offer strong year-round rental demand, which continues to hold appeal for investors seeking reliable returns from both holiday lets and longer-term contracts. Limited supply of quality homes in prime seaside areas and major cities is helping underpin both rental yields and long‑term capital growth expectations.

Who’s Purchasing?

UK buyers maintain a lead overall, especially for holiday and resale homes, but Germans, Dutch, French, Italians, Scandinavians, and North Americans play a major and growing role. The spectrum ranges from retirees and young families to remote-working professionals and lifestyle seekers, with luxury buyers focusing on high-end villas and apartments in Marbella, the Balearics, and city centres. Recent reports confirm that British nationals still top the rankings by nationality, but the mix of non‑EU and EU buyers is becoming increasingly diverse across regions.

Practical Advice and Trends for 2025

Early Viewing and Preparedness

Proactive buyers are setting up local representation and finances early. The most desirable homes—modern villas, sea view apartments, and townhouses—often sell rapidly, so it pays to act quickly and have legal advice before making offers. In the busiest coastal provinces, agents report that well‑priced, high‑spec properties can attract multiple offers in a short space of time.

Legal Checks and Documentation

With new rules around rental licensing and anti-money laundering, buyers are advised to double-check all legal paperwork, planning permissions, and community fees before closing any deals. This is particularly important in hotspots where tourist rentals are tightly controlled and compliance can significantly affect both income and resale value.

Long-Term Outlook

Supply shortages are expected to persist, especially for new builds and energy-efficient homes. Experts predict continued growth in value, especially in premium and emerging markets along the coasts and around major cities. Demand for modern, sustainable properties is likely to remain strong as both locals and foreign buyers look for lower running costs and better energy ratings.

Exploring Hidden Gems

Beyond the big names, Almería, Cadiz, and inland spots in Málaga offer a relaxed lifestyle, lower prices, and growing infrastructure for those seeking an authentic local experience or quieter living. These less publicised areas still see rising interest from international buyers but often at significantly lower average prices than headline coastal hotspots.

How to Choose the Right Region

When comparing regions, start with your main goal: full‑time relocation, a holiday base, or a primarily investment‑focused purchase. Coastal hotspots with high foreign demand tend to offer better rental prospects and faster resale, while emerging areas and inland towns can deliver more space and better value if lifestyle matters more than yield.

It also helps to test day‑to‑day life before buying by renting for a season, checking transport links in and out, and speaking to local advisers about upcoming infrastructure or zoning changes that could affect your long‑term plans.

Bottom Line for Buyers

Spain is set for another strong year of foreign home purchases. Buyers who choose prime regions and act decisively can expect property values to keep rising, vibrant communities, and exceptional lifestyle opportunities. From coastal luxury to urban dynamism and family-friendly enclaves, Spain offers something for every expat—making 2025 an ideal time to invest, relocate, or simply enjoy a new way of life under the Mediterranean sun.

Thinking of buying a home in Spain?

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