In 2025, Spain real estate investment is booming—over 30% of Costa Blanca, Costa del Sol, and Balearic Islands sales are to foreign buyers. Discover how international investment is driving Spanish coastal property prices to record highs.
Spain real estate investment continues to soar in 2025, driven in large part by strong foreign demand, especially in the coveted coastal regions. According to the latest data from the Registrars, more than 30% of all property sales in sought-after areas like the Costa Blanca, Costa del Sol, and the Balearic Islands are directly attributed to international buyers, with figures reaching as high as 43.67% in Alicante.
Foreign Buyers Dominate the Coast
The magnetism of Spain’s sun-drenched coasts remains undiminished for overseas investors and lifestyle seekers. The Registrars’ Q2 2025 data reveals:
- Alicante (Costa Blanca): 43.67% of all property sales involve foreign buyers.
- Malaga (Costa del Sol): 34.75% of sales are to international investors.
- Balearic Islands: Foreigners account for 30.03% of sales.
In regions like Girona (Costa Brava), foreign investment also remains robust, representing over a quarter of transactions (26.59%) in 2025.
These Mediterranean regions stand in stark contrast to the coastal provinces in the north, where foreign activity is minimal—just 2-4% in A Coruña, Lugo, Pontevedra, Cantabria, Guipúzcoa, and Vizcaya. Demand remains local and speculative activity subdued, resulting in more moderate price movements.
Rising Prices Fueled by International Real Estate Demand
The consistent influx of international capital is closely linked to increasing property prices along the Spanish coast:
- Costa Blanca: Prices have climbed 39.77% since 2020, now averaging €278,617 (up from €199,335).
- Costa del Sol: Experienced the most dramatic rise, a 52.75% increase over five years—from €263,497 to €402,496.
- Balearic Islands: Home prices are up 35.79%, now averaging €479,315, compared to €352,991 in 2020.
- Canary Islands: The cost of coastal homes surged 48.88%, reaching €288,982 (from €194,100).
Overall, the data confirm the direct correlation between foreign demand and property price escalation in these popular markets.
Most Expensive and Affordable Spanish Coasts
Despite brisk international activity nearly everywhere along the Mediterranean, price differences remain pronounced:
Most Expensive Coastal Areas (2025):
- Costa del Garraf: €550,057 (from €478,835 in 2020)
- Basque Coast: €432,209 (down from €455,809 in 2020, the only decrease among major coasts)
- Costa Brava: €417,230 (up from €384,455)
Most Affordable Coastal Areas (2025):
- Costa de Almería: €140,115 (from €117,304)
- Rías Altas: €161,982 (from €148,685)
- Costa Cálida: €168,730 (from €145,967)
The slowest price growth is seen in the northwest and north: Rías Altas (+8.94%), Costa Brava (+8.53%), Costa Verde (+9.16%), while the Basque Coast defied the general trend with a decrease of -5.18%.
Outlook: Foreign Investment Remains Key to Spain’s Real Estate Market
Spain’s real estate market in 2025 highlights a pronounced east-west divide: Mediterranean and island regions are booming, with foreign buyers exerting upward pressure on prices, while northern provinces retain their characteristically more stable and accessible markets.
Investors eyeing Spain’s coast—particularly the Costa Blanca, Costa del Sol, and Balearic Islands—should weigh the rapid price growth and strong international competition. Meanwhile, those seeking value may still discover opportunities for appreciation and lifestyle in regions like Almería or the Rías Altas.
Spain Real Estate Investment: Key Takeaways
- Coastal property prices have soared—in some cases over 50% in five years—driven by foreign buyers.
- More than 30% of sales in Costa Blanca, Costa del Sol, and Balearic Islands involve international investors.
- The strongest price growth and foreign buyer presence are in the Mediterranean and islands; northern coasts remain stable.
- The market outlook: International demand will likely continue, adding value but also increasing competition for prime coastal properties in Spain.
