Spain’s coastal property market is experiencing a renewed surge, led largely by international buyers. In 2024 alone, nearly 40% of all property purchases were made by foreign nationals, totalling over 139,000 transactions. This marks a 10% increase year-on-year and underscores the rising global appeal of Spain’s coastal regions, particularly the Mediterranean and island territories.
Coastal Prices Continue to Rise
Average property prices purchased by foreigners in 2024 climbed to €2,362 per square metre — an 8.6% rise compared to the previous year. In comparison, Spanish nationals paid an average of €1,713/m². The price gap reflects the continued strength of international demand, often focused on second homes or investment properties in beachside and lifestyle destinations.
Among the most in-demand regions were Valencia (41,400 sales), Andalucía (25,500), and Catalonia (21,500). According to the Bank of Spain, prices in coastal provinces such as the Balearic Islands, Andalucía, and the Canary Islands have risen by over 38% since 2014, not adjusted for inflation.
Pressure on Local Housing Supply
This influx of foreign investment has significantly reduced available housing for residents, especially in tourist-heavy areas. In the Balearic and Canary Islands, over half of the housing stock is now in foreign ownership. Malaga and Alicante have each seen a reduction in residential availability of 40% and 35% respectively.
Short-term rental platforms such as Airbnb have added further pressure, shifting long-term homes into the tourist market. In response, the Ministry of Consumer Affairs has mandated the removal of over 65,000 unlicensed holiday rental listings in an attempt to ease the crisis.
Changing Profile of International Buyers
While British and French demand showed signs of decline, other nationalities sharply increased their presence in the Spanish market. Polish buyers led the trend with a 44% surge in purchases, followed closely by Chinese (26.5%), Ukrainians (26.3%), Dutch (26%), and Colombians (23.4%).
This shift reflects broader global interest in Spain as both a safe haven and a lifestyle destination, diversifying the traditional pool of European buyers.
2025 Outlook: Prices Set to Climb Further
Early figures for 2025 suggest continued upward pressure on prices, with national home values projected to rise nearly 10% in Q1 alone. The Bank of Spain estimates a housing shortfall of 550,000 units, particularly concentrated in urban and economically vibrant provinces such as Madrid, Barcelona, Alicante, Valencia, and Malaga.
This structural imbalance — with demand far outpacing new construction — will likely drive both price increases and renewed focus on planning regulations in the years ahead.
Looking to take advantage of this market momentum?
JUST Real Estate offers access to exclusive coastal opportunities along the Costa del Sol — including off-market listings and developments not yet available to the public. Whether you’re buying as an investor or looking for a second home, our local expertise and global network ensure you find the right property at the right time.
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