British buyers retreat from Spanish property market to decade-low levels

British purchases of Spanish real estate have fallen to their lowest point in years, trading nearly 40% below 2016 levels.

In the first quarter of 2026, British buyers acquired just 1,691 properties in Spain. This represents a 20% decline year-on-year and a 23% drop below the ten-year average. By contrast, overall foreign demand fell by only 3.2%, suggesting that British buyers are withdrawing significantly faster than their international counterparts.

The shift in market share is even more striking. At their peak, British purchasers accounted for 22% of all foreign property acquisitions; they now represent just 6.8%. Meanwhile, overall foreign demand has nearly doubled since 2016. Spain has become more popular internationally, but markedly less so among British investors.

The reasons are multifaceted. British buyers have traditionally sought affordable coastal properties, but they now face headwinds from a weakened pound, rising prices and visa complications following Brexit. With property values climbing whilst the British economy stagnates, Spain no longer presents the straightforward, affordable opportunity it once did.

Source: Spanish Property Insight