Foreign buyers lose appetite for Spanish property as demand falls 17.6% year-on-year

The first official data for 2026 reveals a cooling Spanish market, with demand from overseas buyers declining at the sharpest pace. In the first quarter, foreigners purchased 26,977 properties—a 17.6% drop compared with the same period last year. Their market share fell from 17.8% to 16.5%.

The steepest decline has occurred in the non-resident foreign buyer segment—those purchasing homes for leisure and lifestyle purposes. Their acquisitions fell by 22% and have now dipped below the ten-year average. This marks a significant shift: this cohort has become the weakest among all buyer categories. Expatriates relocating to Spain for permanent residence are declining more slowly at 14.4%, but remain above historical norms.

Spanish domestic buyers are also purchasing less, down 9.8%, yet they are holding considerably firmer. Their demand remains 15% above average—they continue to form the backbone of the market.

Experts cite several factors: elevated prices, poor affordability, supply shortages and economic uncertainty. Add to this Prime Minister Sánchez's policy stance, which has been openly critical of foreign buyers and proposes punitive taxation. The message appears to have landed—some foreign purchasers now sense they are not particularly welcome.

Spain has long relied on foreign demand in coastal regions. Should this trend persist, it could substantially reshape the market.

Source: Spanish Property Insight