For decades, German and British buyers were regarded as the driving force behind Spain’s property market. Now, however, a historic shift is taking place: for the first time, Dutch buyers have become the largest group of foreign property purchasers in Spain. The development is particularly significant for German buyers, as Germany remains one of the country’s most important source markets for residential property on the Iberian Peninsula.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
Spain remains one of Europe’s most attractive destinations for international property buyers. Its pleasant climate, high quality of life, modern infrastructure and, in many areas, property prices that remain relatively affordable by European standards continue to attract strong demand from overseas. At the same time, however, the composition of foreign buyers is gradually changing, reflecting shifting trends across the European property market.
According to the latest figures from Spain’s General Council of Notaries, Dutch nationals purchased more properties in Spain last year than any other foreign nationality. This marks the end of a decades-long period during which German and British buyers played the leading role in the Spanish property market. Germany, traditionally one of the country’s most important source markets for foreign buyers, has been overtaken by the Netherlands for the first time. The figures highlight how significantly international demand has shifted in recent years.
Dutch Demand Continues to Grow Strongly
In 2025, Dutch buyers purchased a total of 6,289 properties in Spain. This put them just ahead of German buyers, who recorded 6,233 purchases, and British buyers with 6,152 transactions. When including Dutch residents already living permanently in Spain, the total rises to 8,354 property purchases. Compared with the previous year, this represents an increase of more than 12 per cent.
For Germany, however, this development by no means indicates a decline in interest in the Spanish property market. On the contrary, German buyers remain among the most important foreign investors and have been one of the most consistent buyer groups for many years. The narrow gap to the Netherlands rather highlights how closely the three largest purchasing nations are now positioned in the market.
Many German buyers purchase property not only as holiday homes, but increasingly also as retirement residences or long-term investment assets. In particular, individuals who work remotely or wish to spend their retirement years in a warmer climate continue to choose Spain as their preferred destination.
Shift at the Top
For many years, British buyers were regarded as the dominant force in Spain’s property market. In particular, the Costa del Sol, the Costa Blanca and the Balearic Islands saw the development of numerous residential complexes and entire neighbourhoods that were strongly shaped by British property owners.
This picture is now changing. The number of property purchases by British nationals fell by around 8.5 per cent last year. A slight decline of approximately 2.6 per cent was also recorded among German buyers. However, this decrease was significantly more moderate than in the case of British buyers, highlighting that Germany continues to play a stable role in Spain’s property market.
Market observers see this less as a general decline in demand and more as a shift within Europe. While British buyers have become more cautious due to changing economic conditions and additional bureaucratic hurdles following Brexit, interest from the Netherlands is growing particularly strongly. German buyers, meanwhile, remain consistently present and continue to be one of the key target groups for developers and estate agents.
Costa Blanca Remains Highly Popular
The Mediterranean coast remains particularly popular among international buyers. The province of Alicante, with its numerous coastal towns, is increasingly becoming a focal point of Dutch demand. At the same time, the region has also been one of the preferred destinations for German property buyers for many years.
In addition to the Costa Blanca, the Costa del Sol is also extremely popular. Cities such as Marbella, Estepona, Mijas and Málaga attract thousands of international buyers every year. German buyers in particular often choose these areas due to their excellent infrastructure, year-round accessibility, and the wide range of German-speaking services, as well as international schools and medical facilities available in the region.
In addition, strong flight connections between Germany and Spain play a decisive role. Numerous German airports offer daily direct flights to Spain’s coastal regions, making holiday properties or second homes easy and convenient to access.
Foreign Buyers Remain an Important Economic Factor
Although the total number of property purchases by foreign buyers declined slightly last year, their impact on Spain’s property market remains substantial. In 2025, more than 138,000 properties were sold to international buyers. This means that nearly one in five property transactions in Spain involved foreign purchasers.
German buyers in particular have made a significant contribution to this development for many years. They invest not only in holiday apartments, but also frequently purchase high-quality detached homes, flats, or new-build developments. Many owners spend several months a year in Spain, while others later decide to take up permanent residence along the Mediterranean coast.
For many regions, German property owners therefore represent an important economic factor. They help sustain jobs in the construction industry, the real estate sector, tourism, and various service industries, while also contributing significantly to local economic value creation.
Why Spain Remains So Attractive
The reasons why so many Germans choose to buy property in Spain have changed little in recent years. The Mediterranean climate, abundant sunshine, and comparatively relaxed lifestyle remain key factors, alongside good healthcare provision and modern infrastructure.
In addition, property in many regions of Spain remains more affordable than comparable homes in numerous German metropolitan areas, despite rising prices. For many buyers, Spain therefore offers the opportunity to realise the dream of owning a home in the sun while at the same time investing in a long-term attractive asset.
Investors also continue to see attractive opportunities. In particular, holiday properties in highly sought-after tourist regions remain an appealing investment, provided that the relevant regional regulations governing short-term tourist rentals are observed.
Impact on the Property Market
The rising demand from the Netherlands is likely to further intensify competition for attractive properties, particularly along the Costa Blanca and the Costa del Sol. At the same time, Germany remains one of the most important markets for Spanish developers and real estate companies. Many project developers specifically tailor their offerings to German buyers and actively promote German-language services as well as comprehensive support throughout the property purchasing process.
However, the sustained high level of demand is also fuelling political debate about rising property prices. In many Spanish regions, discussions are taking place on how to ensure sufficient housing for the local population without at the same time discouraging foreign investment. This debate is expected to play a key role in shaping the property market in the years ahead.
