Spain’s housing market sends shockwaves as foreign purchases plunge

Spain's housing market is experiencing a significant downturn in foreign purchases, with a 13% decrease in international buyers during the first half of 2026 compared to the same period last year, marking the sharpest decline since the Covid-19 pandemic. The slowdown in demand is evident in the reduced activity among non-residents, who completed 18% fewer purchases year-on-year.

Despite the decline, foreign buyers continue to contribute to Spain's housing market, with their share of transactions dropping from 20.3% in 2024 to 18.3% in 2026. The average price paid by foreign purchasers reached a record €2,644 per square metre, up 9.4% from the previous year, while non-resident buyers paid an average of €3,493 per square metre.

The slowdown in international demand is particularly notable in popular destinations such as the Balearic Islands and the Valencian Community, where property prices have surged despite fewer foreign transactions.

Brief written by urgent.news from Euro Weekly News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.