Market Overview: A Polarized Market
The latest quarterly report from Spain’s College of Property Registrars (Colegio de Registradores de la Propiedad) reveals a starkly polarized real estate market for Q2 2026. While strong demand from foreign buyers has pushed their market share and prices in certain regions to historic highs, the total volume of property transactions across the country continues to decline.
Foreign Buyer Demand Hits All-Time High
In the reporting period, foreign buyers made over 26,800 property purchases in Spain, accounting for a record-breaking 15.98% of the national total. The British were the top buyers at 6.99%, closely followed by the Dutch (6.94%), Germans (6.11%), Moroccans (6.09%), and Romanians (5.7%). Buyers from Italy (5.13%), France (4.97%), and Poland (4.33%) were also significantly active. Overall, buyers from EU countries dominated the market, constituting 57.39% of all foreign purchases.
Uneven Regional Popularity: Coastal and Island Areas in High Demand
Foreign buyers’ interest is primarily focused on the Mediterranean coast and island regions. The Balearic Islands (Baleares) stand out, where foreign buyers account for a staggering 32.2% of purchases—more than double the national average and the highest of any autonomous community. Other popular regions for foreign investors include the Valencian Community (31.03%), the Canary Islands (29.33%), the Region of Murcia (23.71%), Catalonia (17.63%), and Andalusia (15.95%).
Prices Climb as Transaction Volume Moves in the Opposite Direction
Fueled by strong demand, Spain’s national house prices rose by 3.14% quarter-on-quarter in Q2, officially breaking the previous record set during the 2007 property bubble. Madrid stands as the most expensive region, with an average price of €4,477 per square meter. The Balearic Islands follow at €4,311/m², with its capital, Palma, reaching €4,291/m² and ranking as the fourth most expensive provincial capital in the country.
However, in stark contrast to the price hikes, the total number of property transactions nationwide dropped to 167,934 in the second quarter, a 5.7% decrease from the previous quarter, marking the second consecutive quarterly decline. This surge in foreign demand and climbing prices has ignited widespread social debate on housing affordability and market sustainability, particularly in hotspots like the Balearic Islands, even as the local real estate industry opposes measures to restrict purchases by non-residents.
