Foreign buyers account for 60% of demand in Spain’s ultra-luxury property sector, according to the “2026 Report on the Luxury Housing Market in Spain,” commissioned by insurer Hiscox from real estate consultancy Catella and published on 13 August. The report describes the sector as going through an “excellent period,” with prices up 30% over the past five years and the annual volume of transactions by foreign buyers reaching an estimated rate of roughly 130,000 in 2025.
Non-resident foreign buyers are paying the highest prices per square metre, the report says, driven by a preference for “prime” properties and locations that has fuelled a “steady increase” in values. Geographically, the market is concentrated: the Balearics, Málaga, Madrid and Barcelona together account for 83% of all Spanish properties valued above €3 million.
But the foreign-buyer presence varies sharply by destination type. In coastal hotspots it is “overwhelming” — 84% of luxury properties in Benahavís (Málaga) and 79% in Andratx (Mallorca) are bought by foreigners. In large urban centres the picture flips: foreign buyers account for just 14% of luxury transactions in Madrid city (17% in neighbouring municipalities such as Alcobendas), which the report says shows Madrid’s luxury market remains “surprisingly robust[ly]” driven by local buyers.
The report also finds that the abolition of Spain’s investment-based residence visa (the Golden Visa), which took effect on 3 April 2025, has had a “virtually negligible” impact on transaction trends, accounting for barely 0.5% of all transactions. “Investors in the luxury segment purchase properties driven by lifestyle considerations, security and residential quality, with investment volumes typically far exceeding the minimum legal threshold of €500,000 required under the previous legislation,” the analysis notes.
