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Property purchases by foreign buyers in many of Spain's most popular areas have fallen dramatically in the first half of 2025, sparking concern among local estate agents. In the Canary Islands, sales fell by 7.7% between January and June, while prices soared by over 14%, according to new data released by Spain’s General Council of Notaries. The archipelago off the coast of North Africa was closely followed by the Balearic Islands, which saw just 2,816 sales to foreign buyers - a fall of almost 7% compared with the same period in 2024.
The popular Spanish holiday islands were among four regions to record a decline in sales, alongside Navarre in northern Spain and Valencia on the east coast. Across the country as a whole, foreign home purchases rose by 2% year-on-year, reaching 71,155 transactions, led by British, German and Moroccan buyers. However, their overall share of the Spanish housing market fell from 20.3% in 2024 to 19.3% this year.
In the Canaries, prices remain among the highest in Spain, with the average cost for properties bought by foreigners standing well above the national mean of €2,417 (£2,104) per square metre, the third-largest price rise after Madrid (17%) and La Rioja (16%). The report also highlights that non-resident foreigners continue to pay a significantly higher price of £2,721/m² on average, compared with foreign residents (£1,664/m²) and Spanish nationals (£1,574/m²).
Buyers from the UK continue to top the list with 5,731 transactions, followed closely by Morocco (5,654) and Germany (4,756). Purchases by Dutch, Belgian and French nationals also remain strong, while those by Russian citizens plummeted by nearly a fifth, Canarian Weekly reported. Buyers from Portugal, meanwhile, sharply increased their activity, up by nearly a quarter.
On the mainland, the main house buyers in the Valencian community last year were local residents. A study of 69 regional real estate agencies and their transactions by the National Federation of Real Estate Associations (FAI) and the Association of Valencian Community Real Estate Agents (Asicval) found that non-EU buyers, including those from the UK, accounted for 10% of primary residence transactions in 2024, compared to 24.6% the previous year. In the case of second homes, these fell from 36% to 11.5%, according to Costa Blanca FM.
Daniel Arenas, the president of the ABINI association of national and international real estate agents, said this was "an adjustment" caused by high prices and limited supply.
Elsewhere in Spain, sales to foreigners rose by up to 30%, as in Asturias.
Second-quarter figures from the College of Registrars showed a 1.6% year-on-year fall in the sale of homes to foreign buyers, confirming a trend that has been evident since 2023.
This news comes as it was revealed earlier this month that bars and restaurants in the Balearics have suffered greater loss of custom than in any other Spanish region over the course of the tourism season. In its Restaurant Results in summer 2025 report, Delectatech points to a direct link between a fall in occupancy and a "prolonged rise in prices". Restaurants in Majorca have consistently complained about a fall in business since last summer, attributing this to lower tourist spending.
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