Spain property market update – May 2025: Coastal hotspots, visa changes & where smart buyers are investing

Andalucia and Catalonia shine in Spain’s spring 2025 property surge

Spain's housing market is blooming as bright as spring flowers, with nearly 59,000 residential properties changing hands in February! That's a bouncy 12.2% jump compared to the same month last year, according to the latest provisional data from Spain's Land Registry.

Regional highlights:

• Andalucia is the star performer, with sales soaring by an impressive 24.5% year-on-year. Looks like everyone wants a piece of southern Spanish sunshine!

• Catalonia isn't far behind, posting a robust 15.6% increase. Barcelona's charm continues to work its magic. 

• The Murcia Region shows solid growth at 13.0%, while the beautiful Balearic Islands have attracted 10.7% more buyers than last February.
   
• Madrid remains a strong market with an 8.5% upswing, and the Canary Islands show modest but positive growth at 3.9%.

• Only the Valencia Region is swimming against the tide with a slight 1.9% dip in sales.

On the financing front, approximately 38,500 residential mortgages were registered during February, representing a modest but stable 1.9% increase year-on-year. While mortgage growth isn't matching the pace of property sales, it suggests homebuyers remain confident in Spain's housing market.
Sunshine, sangria, and surging property sales - Spain's real estate market is definitely having a moment!

Foreign buyer record: Spain hits 93,000 international home sales

Ole! Spain has officially become international buyers' hottest crush with a record-breaking 93,000 homes purchased by foreign buyers last year! That's not just a number to celebrate—it's the highest ever recorded and represents a whopping 15% of all property transactions across the country.

And where are these global house-hunters planting their flags? The coastal hotspots are absolutely sizzling:

Alicante (Costa Blanca) is the undisputed champion, with an astonishing 43.8% of homes being snapped up by international buyers. Almost every other property sold goes to someone from abroad!

Málaga (Costa del Sol) continues to shine bright, with foreigners accounting for 32.4% of the market. Seems like everyone wants their slice of the sun-drenched Costa del Sol lifestyle!

Santa Cruz de Tenerife in the Canary Islands isn't far behind, with international buyers claiming 33% of sales. Island life clearly has universal appeal!

The beautiful Balearic Islands (Mallorca, Ibiza, Menorca) remain as magnetic as ever, with foreign buyers representing 32.6% of all transactions.

It's clear why these Mediterranean havens continue to entice buyers from around the world—they offer the perfect cocktail of sunshine, lifestyle, and investment potential that keeps international buyers coming back for more!

The golden goose is gone

Spain’s Golden Visa scheme—offering residency to non-EU nationals investing €500,000 or more in property—officially ended on April 3, 2025.

Although it only impacted a small percentage of buyers, the program’s closure marks a shift in how Spain approaches foreign property investment. Buyers from outside the EU will now need to explore other visa routes, such as the non-lucrative or digital nomad visas. Check out our comprehensive guide to Spanish visas for more information. 

Spain says “¡Bienvenidos!” 

Big changes are coming to Spain’s immigration rules on May 20—and they’re mostly good news! Non-EU family members of Spanish nationals can now get a five-year permit with work rights, the age limit for dependent kids jumps to 26, and even unmarried couples get recognition if they’ve lived together or share kids. Students can work more hours, work permits last longer, and rejected asylum seekers might have a new shot at legal residency. In short: easier paths to entry, more flexibility, and a warmer welcome all around.

Spain welcomes 85 million visitors as tourism stays strong

Amid concerns about housing pressures, Spain’s tourism industry is thriving—and it’s a positive sign for homeowners and investors. 2024 saw over 85 million international visitors, close to pre-pandemic highs, according to the latest official government data.

British, German, and French travellers topped the charts—especially in coastal destinations like Málaga, Alicante, and the Balearic Islands

Hotel and holiday rental bookings for summer 2025 are already up year-on-year

Why it matters? A strong tourism sector supports property values and short-term rental potential, especially in well-connected towns with year-round appeal.

Planning on renting?

This year Spain has introduced significant new regulations for short-term rentals that vary across national and regional levels.

If you're buying property with plans to offer vacation rentals, be sure to inform your estate agent about your intentions from the start. It's also essential to work with a local lawyer who can check whether you'll be able to obtain the necessary rental license, as requirements differ considerably between Spain's regions. 

Read more in our latest article - Short-term rental rules in Spain: What buyers need to know in 2025

Spanish mortgage market update: May 2025

Securing a mortgage in Spain remains a viable option for both residents and non-residents, with competitive rates and various lending options available.
Market Trends:

• The Euribor has decreased from its 2023 peak of 4.05% to approximately 2.95% in 2025, leading to more favourable variable-rate mortgage conditions.
• Fixed-rate mortgages remain popular, offering long-term stability with rates fixed for up to 20 years.
• Mixed mortgages are gaining traction, providing an initial fixed-rate period followed by a variable rate, combining predictability and potential savings.

It's advisable to consult with mortgage brokers or financial advisors to explore the best options tailored to your financial situation and property goals.

Costa Almería: A hidden gem

Costa Almería, nestled in the southeastern corner of Spain, is often overshadowed by its more famous neighbours like Costa del Sol and Costa Blanca. Yet, as Daniel Marín, CEO of Spanish Property Expert, passionately outlines, this region offers a unique blend of affordability, natural beauty, and investment potential. 

Historically underdeveloped compared to other Spanish regions, Almería is now witnessing a surge in interest, partly due to infrastructural advancements like the upcoming high-speed AVE train, which will connect Vera to Madrid in just two and a half hours. 

Watch the full interview with Daniel Marin here:

Quirky news from the coast

Need a reminder of why Spain is so loved? Here are a few recent stories that made us smile:

Ibiza to launch a "quiet zones" initiative this summer—bringing a touch of calm to select beach areas, ideal for families and retirees.

A flamingo colony has returned to the salt flats of Cádiz after decades—drawing eco-tourists and photographers alike.

In Benidorm, a local café has gone viral for serving “sunset cocktails” with names inspired by British TV shows—proof that the Costa Blanca still knows how to have fun.

Final thoughts: What buyers should know in Summer 2025

Spain still offers excellent opportunities for international buyers, but 2025 may require a more strategic approach.

Top tips:
1. Stay informed on visa and residency options

2. Work with a local lawyer and estate agent familiar with foreign buyer rules

3. Consider emerging markets beyond the usual hotspots

4. Explore mortgage options early to secure favourable rates and terms