Spanish property market update: Foreign investment surges as tourism reshapes real estate

British buyers still rule the Costa roost

Foreign property purchases in Spain rose 1.8% in the first half of 2024, according to the latest data from the General Council of Notaries. Foreign buyers currently represent 20.4% of real estate transactions in the country. British buyers led transactions at 8.4%, followed by Moroccans and Germans.

Nationalities seeing the biggest rises included Poles, Ukrainians and Colombians.

Keith Spitalnick, an agent on the Costa Del Sol told us recently, “our market's global now. They're coming from everywhere. Loads of Americans, Canadians. They're coming from Australia, from New Zealand. In terms of our client base, it's now a global market as opposed to just being limited to Northern Europe.” Average prices hit a record €2,249 per square metre, with non-resident foreigners shelling out nearly €2,900/m² - an 11.4% increase that's enough to make even a seasoned estate agent wince. 

Bargain hunters' paradise: Spain's best-kept coastal secrets revealed

While the Costa del Sol continues its love affair with eye-watering price tags, Kyero has done budget-conscious property buyers a solid by revealing Spain's most affordable coastal gems. Topping the list is Galicia's A Coruña at a modest average price per property of €134,000 - proving there's still hope for those whose property dreams don't require a lottery win.

The real revelation? The province of Castellón seems to be having a property car boot sale, claiming four spots on the top-ten list. From Benicarló's €156,000 average to Oropesa del Mar's still-digestible €239,000, this overlooked Costa del Azahar province is practically giving away seaside views. Even Peñíscola, with its Game of Thrones-worthy castle, barely breaks the €230,000 mark. Time to brush up on your Valenciano, perhaps?

"Thanks, but we're full": Spanish tourism hits breaking point

Spain's tourism sector is experiencing what might be called a champagne problem. With 21.8 million international visitors descending upon its shores this summer - a 7.3% increase from 2023 - locals are beginning to wonder if there's such a thing as too much of a good thing. Barcelona's response? A bold plan to end tourist apartment rentals by 2029, effectively putting up a "No Vacancy" sign for future Airbnb enthusiasts.

However, the picture varies significantly across regions. John Goldacre, a property expert in Fuerteventura, suggests mainland protests don't reflect the reality in the Canaries. "We've had 1.6 million tourists here in the first six months of the year, bringing vital jobs and revenue," he says. "The real issue isn't tourism - it's the lack of affordable housing provision from local governments." His view? The press might be making mountains out of molehills, at least on his sunny island. Listen to our full interview with John on our YouTube channel. 

Málaga says "No Más" to tourist rentals

Meanwhile, in a move that's sent property investors reaching for the sangria, Málaga has introduced strict limits on tourist rentals across 43 neighbourhoods. The historic centre, where holiday lets currently make up a staggering 75% of tourist accommodation, faces a complete ban on new licenses. The restrictions aim to protect residential housing stock and manage tourism growth sustainably.

Move over Paris, Valencia is the new European hotspot

In what might come as a surprise to absolutely no one who's visited recently, Valencia has nabbed the title of Europe's Best City in Conde Nast Traveller's Readers' Choice Awards. The city's winning combination of paella, parties, and property potential has earned it official recognition with the magazine’s discerning readers. Meanwhile, the luxurious Finca Cortesin near Marbella was celebrated among Europe's finest hotels in the same awards. More accolades followed in Time Out’s latest list of Europe's most beautiful places, chosen by seasoned travel writers. The Royal Alcázar of Seville ranked eighth - though locals insist it was robbed of the top spot.

Alicante's answer to housing crisis: Build up, not out

Alicante is tackling its housing shortage with typical Spanish flair: by building three 15-story residential towers in a new neighbourhood called Lomas de Garbinet. The development promises 1,000 homes, including 300 public housing units, extensive green spaces, and - naturally - a new roundabout. Construction is slated for late 2027, giving everyone plenty of time to practice pronouncing "Garbinet" correctly.

Spain's property market defies gravity: Sales surge as prices climb

In a real estate rollercoaster that would make economic pessimists blush, notary figures reveal a 6.2% sales volume increase compared to last year, accompanied by a mortgage approval surge that would make a banker smile. At €1,599 per square metre, property prices continue their upward march, with regional variations. Standout performers include Castilla y León and Asturias, leading the sales growth charge, while Castilla-La Mancha has apparently discovered property market rocket fuel with a jaw-dropping 62.9% price increase, while Navarra recorded a 25.6% rise. Who said economic challenges could dampen Spanish spirits?

Brexit? What Brexit? 1.5 million Brits plot Spanish escape

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A new report by Currencies Direct suggests approximately 1.5 million Britons are planning to swap drizzle for dazzle within the next year. Spain tops the list of preferred destinations, with cost-of-living concerns and sky-high UK property prices driving the exodus. The report shows that 38% of British expats have no regrets about their move - the other 62% presumably just need more time at the beach.

Inflation retreats, but wallet-pinching persists: Welcome to Spain's new normal

With inflation diving to a three-year low of 1.5%, Spain offers a glimmer of hope to foreign property buyers concerned about living costs. But don't break out the celebration sangria just yet. Economists warn that pre-pandemic price levels are about as likely as finding a beachfront bargain in August.

Since December 2019, food and drink prices have leaped 30%. While energy prices have cooled 20% from 2023 peaks, other costs remain stubbornly elevated. Wages have climbed 12.8%, suggesting a new economic choreography where higher prices are balanced by slightly healthier wages.

Madrid's tech-driven transformation attracts global attention

Move over, Silicon Valley. Madrid is staging an urban transformation that's part tech revolution, part environmental manifesto. According to a recent profile by Smart Cities World, the city's "Madrid Nuevo Norte" project is transforming the northern districts, integrating smart mobility, green spaces, and sustainable infrastructure.

With ambitious goals to slash emissions by 65% by 2030 and hit net-zero by 2050, Madrid is positioning itself as the European city that doesn't just talk sustainability—it breathes it. The city's digital transformation strategy is delivering user-friendly e-services and positioning Spain’s capital as a hub for tech talent. Madrid is not just another European city; buy property here and you're in for a lifestyle upgrade.