Calpe, near Alicante, Spain.
We’re just coming off the peak season for visiting Spain, which means that, after enjoying the weather, the food and the culture, many holidaymakers are thinking to themselves: “Could I buy a place of my own here?”
The short answer is “yes,” but there are certain pressures currently affecting the Spanish housing market which mean that moving quickly is a good idea.
Foreign Interest Is Higher than Ever
Despite headlines earlier this year about Spain scrapping the golden visa program, foreign interest in Spanish property remains strong. In Q1 2025, foreign nationals bought over 21,500 Spanish homes, the highest figure ever recorded for the start of a year. That's a 19% increase on 2024, and 50% above the ten-year average, according to data from the Spanish Land Registrars.
And buyers aren’t just looking in Marbella or Mallorca. Mid-market homes in places like Valencia, Málaga, Jerez and the Costa Blanca are seeing healthy demand from international buyers—especially Brits, Germans, Dutch and, increasingly, Americans.
The continued demand is because golden visas were only ever relevant to a small, wealthy segment of buyers. Most international purchasers are looking for well-located, quality properties under €500,000—for part-time use, remote work, retirement or simply a change of lifestyle. And Spain still offers excellent value for these properties, especially compared to Italy or France.
Villajoyosa, near Alicante, Spain.
Low Supply Is Driving Prices Up
The trouble is that supply is getting tighter. According to Caixabank’s latest analysis, the stock of available housing in Spain’s most in-demand provinces is significantly below pre-pandemic levels. In some coastal areas, new home listings are down more than 20% compared to 2019, with construction completions failing to keep pace with demand.
This structural shortage is one reason why prices have remained resilient. Analysts expect house prices to grow by 3.5% in 2025, with even stronger performance in tourist-adjacent and lifestyle-driven regions. Foreign buyers already represent a chunky 15% of total transactions nationally, however they account for a much higher share—up to 35%—in some provinces, putting additional pressure on coastal inventory.
Financing has also become more complex. While mortgage rates have stabilized, access to credit is tighter than it was two years ago. Lenders are cautious, and the process—especially for non-residents—can be slow and paperwork-heavy.
This means that when a good property does appear—with a clean title, in a desirable area, and priced realistically—it often doesn’t last long. Many homes are selling within days, particularly in hot spot areas like Alicante, Málaga and parts of the Balearics. Caixabank notes that the average time a home spends on the market is falling, and that properties in coastal provinces are transacting faster than the national average.
So, if you’re visiting Spain now and using the summer to dip your toes into the housing market as well as the Mediterranean, don’t assume that the properties you like will still be around come autumn.
With transactions in Spain typically taking longer than in the UK—often several month—it pays to get organized early.
Málaga, Spain.
Spain’s Housing Market Has Its Frictions
The process of buying in Spain can feel frustratingly old school. There’s no single online portal or unified registry. Buyers still rely heavily on paper documents, local notaries and in-person bank visits.
A Redpin-commissioned survey of 120 property professionals in Spain and Portugal found that over 68% regularly experience delays in completing transactions due to slow or outdated payment processes. Around one-third said these delays had directly caused deals to fall through, with many professionals noting buyer frustration as a growing issue.
There’s also the essential need to protect account information from AI-enabled fraudsters: cybercrime in Spanish property transactions has risen 37% in three years, with a new report filed every 82 seconds—and international buyers are 32% more likely to be targeted. A staggering 67% of real estate cyber-fraud cases involve non-Spanish-speaking clients, and only 14% of defrauded real estate funds are ever recovered.
These rising risks have given rise to secure payment portals, such as Redpin and similar, focused on the Spanish real estate market. It’s imperative that consumers pick qualified professionals they trust, particularly ones that use secure, specialized platforms to process payments and legals.
Spain remains one of Europe’s most appealing places to live for good reason—and the fundamentals of the housing market remain strong. But in a climate of limited supply and rising prices, the best time to act is right now.
Vula Karademitrou is General Manager at Redpin Payments Spain.