Stable interest rates, strong national and international demand and the attractiveness of the Spanish residential market continue driving property activity, especially in coastal areas such as Costa Blanca and Costa Cálida.

According to the Spanish Association of Real Estate Franchisors (AEFI), the sector maintains stable performance during the second quarter of the year, alongside positive growth forecasts for the whole of 2026.

Property sales in Spain in 2026 could reach 800,000 transactions

Forecasts from the Spanish Association of Real Estate Franchisors indicate that property sales in Spain could reach close to 800,000 transactions during 2026.

The association, which includes some of Spain’s leading real estate networks, also estimates total investment between €19 billion and €20 billion, representing up to 10% year-on-year growth in investment activity.

These forecasts reflect the strength of the Spanish property market despite ongoing international economic uncertainty and limited housing supply in certain areas.

Stable interest rates continue supporting property sales in Spain in 2026

One of the factors continuing to support property sales in Spain in 2026 is the stabilisation of interest rates.

Current forecasts point to a relatively moderate financing environment, helping maintain stable mortgage conditions for both national and international buyers.

This situation continues favouring property activity in markets with strong residential and tourism demand.

International demand continues strengthening the Spanish property market

International buyers continue playing a key role within the Spanish real estate market.

Spain remains one of Europe’s most attractive destinations thanks to factors such as:

• Mediterranean climate
• quality of life
• residential tourism
• international connectivity
• wide property selection

The recovery of tourism and the growth of alternative residential models such as coliving and remote-working lifestyles continue reinforcing the appeal of the Spanish property market compared to other European countries.

Costa Blanca and Costa Cálida remain among the most sought-after areas

Within the Spanish residential market, areas such as Alicante, Costa Blanca and Costa Cálida continue attracting strong international demand.

European buyers remain highly interested in purchasing property by the Mediterranean, especially those looking for:

• second homes
• retirement in Spain
• property investment
• remote working by the sea

The combination of climate, services, flight connections and Mediterranean lifestyle continues positioning Costa Blanca as one of the strongest property markets on the Spanish coast.

If you would like to discover homes in Costa Blanca or Costa Cálida, you can explore the available properties at <a href=”https://esentyaestate.com/properties-for-sale/”>Esentya Estate</a>.

Limited housing supply remains one of the market’s biggest challenges

Despite growing demand, the Spanish residential market continues facing a structural shortage of available housing.

Major real estate networks agree that the imbalance between supply and demand remains one of the sector’s main challenges, especially in coastal areas with strong international demand.

This situation continues placing upward pressure on property prices across parts of the Spanish Mediterranean coast.

The real estate sector continues focusing on professionalisation and digitalisation

Leading real estate networks also highlight the importance of professionalisation and digitalisation as key factors for the sustainable growth of the sector.

Improved processes, transparency and specialised training continue strengthening buyer confidence within the Spanish property market.

Spain continues strengthening its property market in 2026

Forecasts of nearly 800,000 transactions confirm that the Spanish property market continues showing strong growth potential in 2026.

Within this context, Costa Blanca and Costa Cálida continue positioning themselves among the most attractive areas for international buyers looking for Mediterranean lifestyle and long-term property opportunities.

Frequently asked questions about property sales in Spain in 2026

How many property sales could Spain reach in 2026?

Industry forecasts point to nearly 800,000 property transactions during 2026.

Why does property demand continue growing in Spain?

Stable interest rates, international demand and Spain’s residential appeal continue supporting the market.

Which areas of Spain attract the most international buyers?

Costa Blanca, Costa Cálida, Málaga and other Mediterranean coastal areas continue concentrating a large share of foreign demand.

Source: Spanish Association of Real Estate Franchisors (AEFI)

With a total of 77 Blue Flags, the province of Alicante once again tops the national ranking, reinforcing the quality of its beaches, the excellence of its services and the international appeal of its coastline.

The Valencian Community also continues to hold a leading position within Spain, confirming the value of its coastal destinations for residents, tourists and international property buyers.

Alicante once again leads Spain’s Blue Flag beaches

In 2026, Alicante stands out as the Spanish province with the highest number of Blue Flag beaches.

This distinction, awarded by the Association for Environmental and Consumer Education (ADEAC), recognises key factors such as:

• water quality
• safety
• accessibility
• cleanliness
• beach services and infrastructure

The Alicante coastline continues to outperform other Spanish coastal areas thanks to its combination of climate, services, maintenance and well-established tourism quality.

The Valencian Community remains one of Spain’s leading Blue Flag regions

The Valencian Community continues to rank among the regions with the highest number of Blue Flags in Spain.

Alicante plays a fundamental role in this recognition, especially due to the importance of the Costa Blanca within international tourism and European residential destinations.

The province stands out not only for the number of awarded beaches, but also for the diversity of beaches and coves recognised along more than 200 kilometres of Mediterranean coastline.

The most outstanding Blue Flag beaches in South Costa Blanca

South Costa Blanca is home to some of the most highly valued beaches among international buyers and European residents.

Blue Flag beaches in Torrevieja

Torrevieja remains one of the most sought-after destinations on the Costa Blanca.

The beaches awarded in 2026 are:

• Cabo Cervera
• Cala de las Piteras
• El Cura
• La Mata
• Los Locos
• Los Náufragos

The combination of services, promenade areas and Mediterranean climate continues to attract international residential tourism.

Blue Flag beaches in Guardamar del Segura

Guardamar del Segura maintains several recognised beaches:

• Centre Dels Vivers
• Ortigues-Campo
• El Moncayo
• La Roqueta

These beaches are especially known for their wide natural sandy areas and protected surroundings.

Blue Flag beaches in Orihuela Costa

Orihuela Costa continues to be one of the most popular areas among foreign property buyers.

The beaches awarded in 2026 are:

• Cala Capitán
• Cabo Roig – La Caleta
• Campoamor-La Glea
• La Zenia – Cala Bosque
• Mil Palmeras
• Punta Prima

The combination of beaches, services and international residential areas strengthens the appeal of this part of the Costa Blanca.

Blue Flag beaches in Elche

Elche maintains several outstanding beaches along the Alicante coastline:

• Arenales del Sol-Sur
• Carabassí
• L’Altet
• La Marina
• Les Pesqueres-El Rebollo

These beaches are particularly valued for their natural surroundings and wide open coastline.

Blue Flag beaches in Santa Pola

Santa Pola continues to strengthen its position as one of Alicante’s most attractive coastal towns.

The Blue Flag beaches are:

• Calas del Este
• Calas de Santiago Bernabéu
• La Ermita
• Tamarit
• Varador

Blue Flag beaches in Pilar de la Horadada

Pilar de la Horadada maintains several recognised beaches at the southern end of the Costa Blanca:

• Del Conde
• Higuericas
• Jesuitas
• Mil Palmeras
• Puerto Rocamar

The area is particularly valued for its water quality and family-friendly beaches.

Costa Blanca: quality of life by the Mediterranean

Alicante’s leadership in Blue Flag beaches confirms something that thousands of international buyers already know: the Costa Blanca offers a unique combination of climate, services, quality of life and Mediterranean lifestyle.

For those looking for a second home or investment near the sea, Blue Flag beaches are a strong indicator of quality and long-term value.

From signing a property transaction to handling legal and administrative procedures, a power of attorney allows a trusted person to act on your behalf in Spain.

What is the cost of a power of attorney in Spain?

The power of attorney in Spain cost typically ranges between €70 and €120 in most cases, although it can reach up to €150 depending on the complexity and type of document.

For very simple documents, the cost can be as low as €15. However, broader powers that grant more authority will usually increase the price.

Power of attorney in Spain cost for foreign property buyers

The power of attorney in Spain cost is especially relevant for foreign buyers who want to purchase property remotely. This legal document allows a lawyer or trusted representative to sign documents, manage payments and complete the purchase on your behalf.

For many international buyers, using a Spanish power of attorney for foreigners is the most efficient way to avoid multiple trips while ensuring the transaction is handled correctly.

Power of attorney price depending on the type

The power of attorney in Spain cost varies depending on the scope of the document:

• General power of attorney: from €70 up to €150
• Special power of attorney: usually more affordable for specific actions
• Power of attorney for property purchase: between €70 and €120
• Power of attorney for legal representation: around €50–100
• Power of attorney for inheritance: between €70–110
• Power of attorney for multiple parties: from €50, with additional cost per person

The broader the authority granted, the higher the cost.

Additional costs to consider

When calculating the total power of attorney in Spain cost, international buyers should consider additional services:

• Hague Apostille: between €10 and €30
• Sworn translation: between €30 and €120 per page
• Legal or administrative services: variable depending on the provider

These costs are common when documents are issued abroad and used in Spain.

What affects the power of attorney in Spain cost

Although notary fees are regulated by law, several factors influence the final power of attorney in Spain cost:

• Type of power of attorney (general or specific)
• Number of people involved
• Number of copies or document length
• Additional services required

What is a power of attorney used for in Spain

A power of attorney allows someone to act legally on your behalf without needing to travel.

In property transactions, it is commonly used to:

• Sign property purchase agreements
• Open bank accounts
• Manage mortgage procedures
• Represent you before Spanish authorities
• Complete notarial and legal processes

This makes the cost of power of attorney Spain property purchase highly valuable compared to the time and travel it saves.

Can you buy property in Spain without being there?

Yes. Many international buyers complete the entire purchase process remotely using a power of attorney in Spain.

This allows your legal representative to sign documents, manage payments and finalise the transaction on your behalf, making the process faster and more efficient.

If you are planning to buy a property, this is one of the most common and effective solutions.

How long does it take to get a power of attorney in Spain

The timeframe depends on the complexity of the document.

In simple cases, a power of attorney can be issued within a few hours. In more complex situations, it may take several days or weeks, depending on the notary and the scope of authority granted.

Conclusion: a key document for buying property in Spain

The power of attorney in Spain cost is relatively low compared to the value it provides.

It simplifies the buying process, reduces the need for travel and ensures that transactions can be completed securely, even from abroad.

For buyers interested in areas such as Costa Blanca or Costa Cálida, using a power of attorney is often a strategic decision that allows you to move forward with confidence.

Rather than a single market, the current landscape clearly reflects two distinct investment models. In the south, the focus is on capital preservation and prestige. In the east, the emphasis is on cash flow, accessibility and scalability.

Marbella: international luxury and exclusivity

In Marbella, the real estate market has long moved beyond local dynamics. It is now a fully international market, driven by high-net-worth buyers and global capital.

Since the pandemic, this trend has accelerated. Properties priced between €3 million and €15 million are increasingly being sold through private channels, where discretion and strong networks are essential.

Areas such as Puerto Banús and the Golden Mile continue to concentrate a large share of this demand. Limited supply, exclusive developments and strong international interest continue to push prices upwards.

A solid but highly selective market

The prime segment in Marbella remains strong, but it has also become more selective.

Buyers expect top-tier standards in terms of location, design, privacy and services. Properties that do not meet these expectations tend to stay longer on the market.

At the same time, this creates opportunities for investors focused on renovation and repositioning, particularly in well-established locations with strong potential.

Investing in Marbella: a safe haven with global exposure

Price growth in the luxury segment has ranged between 8% and 12% over the past year. While high-end short-term rentals can still generate strong returns, regulatory changes are leading many investors to consider long-term rentals as a more stable alternative.

However, Marbella remains highly sensitive to global economic conditions. Any slowdown in the international economy can quickly impact demand in the high-end segment.

Alicante: a real estate market focused on returns

In contrast to Marbella, Alicante offers a very different investment profile.

Entry prices are significantly lower, allowing investors greater flexibility and, in many cases, higher potential returns. This combination has positioned the province as one of the most attractive areas for international buyers seeking rental income, capital growth and diversification.

Cities like Torrevieja stand out for their strong demand from Northern European buyers, while locations such as Altea attract a more exclusive international audience within a still accessible market.

Why Alicante is gaining investor interest

One of Alicante’s key strengths is its more fragmented and less saturated market, which creates greater opportunities for active investors.

Over the past year, property prices have continued to rise steadily, with increases between 6% and 9%. At the same time, short-term rentals often deliver higher yields than in more saturated southern markets.

This environment supports active investment strategies, including renovation projects and new developments in prime coastal locations or high-demand areas.

Alicante: volume, strategy and scalability

Unlike Marbella, where a single transaction can involve several million euros, Alicante is typically a volume-driven market.

Many investors focus on building portfolios by acquiring multiple units, generating rental income and diversifying risk. This approach works particularly well in a market that still offers a wide range of property types, price points and consistent demand.

In addition, the rise of remote work, international professionals and digital nomads is boosting long-term rental demand, creating further opportunities for strategic investors.

Marbella or Alicante: two ways to invest in Spain

The evolution of the real estate market along the Mediterranean coast leads to a clear conclusion: Marbella and Alicante operate under very different investment logics.

In Marbella, the focus is on:

• capital preservation
• prestige
• high-net-worth international buyers

In Alicante, the focus is on:

• rental income
• accessibility
• portfolio scalability

For many investors, the key is not choosing one over the other, but understanding how each market fits within a broader investment strategy.

Conclusion: Alicante strengthens its position as an investment market

Spain remains one of the most attractive real estate markets in Europe, but understanding regional differences is becoming increasingly important.

In this context, Marbella continues to stand out as a global luxury destination, while Alicante reinforces its position as a market driven by returns, volume and long-term potential.

For investors looking at opportunities on the Costa Blanca, recognising this distinction is not just useful — it is essential.

This not only places Costa Blanca at the centre of the real estate market, but also reinforces its position as one of the most attractive destinations for international buyers in Europe.

Foreign property purchases Spain 2025: Alicante leads the ranking

Alicante tops the national ranking with 43.29% of property transactions carried out by foreign buyers in 2025, far ahead of other key provinces.

It is followed by:

• Málaga (32.80%)
• Santa Cruz de Tenerife (30.04%)
• Balearic Islands (29.86%)
• Girona (25%)
• Las Palmas (21.72%)
• Murcia (21.42%)

This means that in Alicante, almost one in every two properties sold was purchased by an international buyer.

Why Costa Blanca attracts international property buyers

Alicante’s leadership is no coincidence. Costa Blanca offers key factors that drive foreign demand:

• Mediterranean climate all year round
• High quality of life
• Wide range of properties (new build and resale)
• Excellent international connections
• Established and liquid real estate market

These factors make the area a top choice for both second homes and property investment.

Foreign demand continues to grow in Spain

In 2025, international buyers completed around 97,500 transactions, reaching a new historical record.

This represents 13.8% of all property transactions, reinforcing the importance of foreign buyers in the Spanish real estate market.

Although the percentage share has slightly decreased compared to previous years, the total volume continues to grow, confirming the strength of demand.

Nationalities buying property in Alicante and Spain

The international market is still led by European buyers, although it is becoming increasingly diversified.

Main nationalities:

• British (7.97%)
• German (6.52%)
• Dutch (6.3%)
• Moroccan (5.74%)
• Romanian (5.24%)
• French (5.11%)

There is also a clear geographical preference, with British buyers particularly active in the Valencian Community, reinforcing Alicante’s position.

What type of property foreign buyers purchase

International buyers show clear patterns:

• Strong preference for resale properties
• Growing interest in new build properties among certain nationalities
• Smaller properties (typically second homes)

This reflects a buyer profile focused on both investment and lifestyle use.

Growth in high-value property purchases

The increase in property prices is also reflected in foreign buyer behaviour.

In 2025:

• Average price: €2,284/m²
• Average price per property: €214,581

Purchases above €500,000 now exceed 12% of total transactions.

Conclusion: Alicante, a key destination for international property investment

Foreign property purchases in Spain in 2025 confirm a clear reality: Alicante leads the market and is consolidating its position as the main destination for international buyers.

For those looking to invest or buy a second home, Costa Blanca represents one of the strongest opportunities in the current market.

Font: Idealista

This result marks the high point of a clear upward trend. Spain was not included in the ranking in 2021, entered in seventh position in 2022, moved up to fourth place in 2024, reached second place in 2025, and now takes first place in 2026.

Why real estate investment in Spain in 2026 leads the European ranking

According to CBRE’s European Investor Intentions Survey 2026, based on the views of nearly 700 Europe-based investors, confidence in the real estate market continues to improve while expectations for investment activity also rise.

Spain now ranks first, followed by the United Kingdom in second place and Poland in third. The report also confirms a growing preference for Southern Europe. Alongside Spain in first position, Italy moves up to fourth place and Portugal reaches sixth, reflecting the relevance of these markets thanks to competitive pricing, limited supply, and strong fundamentals.

Nearly half of cross-border investors choose Spain as their main destination because of its return potential, supported by the strength of the economy, solid residential demand, and a shortage of supply in certain segments. This imbalance continues to put upward pressure on rents and absorption.

Spain attracts international capital with strong market fundamentals

For the second consecutive year, Spain is once again the only country with two cities among the five most attractive in Europe for international investors.

The report places Madrid in second position, just behind London, underlining its appeal thanks to market size and economic dynamism. Barcelona ranks fourth, while Lisbon stands in eighth place.

Spain’s leadership also follows a strong 2025, with more than €18.4 billion in investment, up 31% year on year and marking the highest level since 2018.

Looking ahead to 2026, CBRE’s Real Estate Market Outlook forecasts a further increase of between 5% and 10%, taking total investment volumes to between €19 billion and €21 billion. This outlook is supported by monetary stability and improved financing conditions, both of which are expected to help transactions and market liquidity.

Real estate investment in Spain in 2026 is supported by sector strength

The structural shift in investor preferences is becoming increasingly clear. Returns are no longer expected to come mainly from yield compression, but from the real ability to generate income. In this context, asset management and operational performance are becoming more important.

Living and Hotels are expected to remain among the most attractive sectors, while Offices and Retail could become two of the main surprises of 2026.

Living remains the leading sector

For the second consecutive year, Living is the preferred sector among European investors, chosen by 34% of respondents. Its attractiveness is supported by structural imbalances between supply and demand, as well as demographic growth.

Logistics keeps a strategic position

Logistics ranks second with 25% and continues to benefit from e-commerce growth, supply chain optimisation, and the need for modern assets close to major urban centres.

Offices, Retail, and alternative sectors gain relevance

Offices rank third with 13%, with a clear focus on prime, sustainable, efficient assets located in established business areas across major European cities. Retail is selected by 12% of respondents.

At the same time, alternative sectors continue to gain momentum. A total of 69% of investors plan to allocate capital to at least one alternative segment, especially student housing, senior living, or healthcare. This confirms growing interest in assets linked to long-term demographic and social trends, with more defensive risk profiles and more stable income flows.

Market outlook for real estate investment in Spain in 2026

The improvement in investor confidence across the European property market reflects price stabilisation and greater access to debt.

Almost nine out of ten investors, or 89%, expect their buying activity to increase or remain stable in 2026, while 83% expect selling activity to increase or remain stable.

The main challenge continues to be the gap between buyer and seller pricing expectations. Even so, the survey points to growing convergence, supported by better economic prospects, more stable valuations, and the expectation of further reductions in financing costs throughout 2026.

Investors continue to favour value-add and core-plus strategies, taking advantage of stable pricing and opportunities to improve income.

ESG is now a key factor in investment decisions

Sustainability is emerging as a major value driver in the European real estate market.

A total of 88% of investors take ESG criteria into account when making investment decisions, using them as a differentiating factor in risk management and in the future liquidity of assets.

Conclusion

Real estate investment in Spain in 2026 confirms Spain’s position as the leading European destination for international property capital.

With a resilient economy, strong residential demand, limited supply in key segments, and improving financing conditions, Spain enters 2026 as the market to watch in Europe.

According to market data and official statistics from the Spanish Property Registrars, international demand remains stable, with strong activity from British, German and increasingly Dutch buyers in the Spanish residential market.

Foreign property buyers in Spain: what the latest 2025 data shows

The most recent market data, particularly from the final quarter of 2025, confirms that international demand remains resilient. British buyers continued to represent one of the largest foreign groups purchasing property in Spain, while Dutch and German buyers followed closely, reflecting a diversified and stable international demand base.

A broader market perspective can be seen in the analysis of foreign home purchases in Spain in 2025, which highlights that overseas demand is structural rather than temporary.

The rise of European buyers and its relevance in 2026

One of the most notable trends in recent years is the growth of buyers from Northern Europe. Factors such as remote work flexibility, lifestyle improvement, climate, and long-term relocation planning are strongly influencing purchasing decisions in Spain.

In many cases, international buyers are no longer searching only for holiday homes. Instead, they are looking for properties suitable for extended stays, semi-permanent living, or full relocation, which contributes to a more stable and sustainable real estate market.

This shift also reflects a broader change in buyer behaviour, where quality of life, security, and long-term usability of the property are becoming as important as short-term investment returns.

Why Costa Blanca attracts foreign property buyers in Spain in 2026

Within the Spanish market, Costa Blanca has consolidated its position as one of the most attractive destinations for international buyers. The region offers a unique combination of Mediterranean climate, international infrastructure, healthcare services, and strong connectivity with major European cities.

For many foreign buyers, Costa Blanca represents a strategic balance between lifestyle and investment. The area provides year-round livability, established international communities, and a wide range of property types that adapt to different buyer profiles.

International demand in Costa Blanca continues to support real estate activity, as explained in foreign buyer demand in Costa Blanca, reinforcing its position as a key destination for overseas purchasers in Spain.

Investment perspective: international demand in 2026

In 2026, foreign buyers are increasingly adopting a hybrid approach that combines lifestyle goals with long-term investment security. Spain, and particularly Costa Blanca, offers a stable legal framework, consistent international demand, and strong long-term property value fundamentals.

Rather than purely speculative purchases, many international clients are selecting properties that can serve as a primary residence, second home, and long-term asset simultaneously. This diversification mindset is aligned with insights on real estate investment in Spain in 2026 and makes the Spanish coastal market especially attractive compared to more volatile real estate destinations.

Additionally, sustained foreign demand contributes to market liquidity and price resilience in consolidated coastal areas.

What type of properties foreign buyers are looking for in 2026

The profile of international buyers has evolved significantly. In 2026, demand is clearly focused on functional, efficient, and move-in-ready properties located in well-connected coastal areas with established services.

The most sought-after property types include modern villas with outdoor space and privacy, contemporary apartments near the sea, and energy-efficient homes designed for long-term usability. Turnkey properties are particularly attractive, as they reduce uncertainty and allow buyers to start using the property immediately.

Buyers are also prioritising properties with strong natural light, outdoor terraces, and proximity to amenities such as healthcare, restaurants, and transport connections. These features align with the lifestyle-driven motivations that dominate foreign demand in Spain.

Frequently asked questions from international buyers in 2026

Are foreign property buyers still active in Spain in 2026?

Yes. The latest complete market data from 2025 confirms that international demand remains stable, particularly in coastal regions like Costa Blanca, where lifestyle and long-term investment motivations continue to drive purchases.

Why do international buyers choose Costa Blanca?

Costa Blanca offers a strategic combination of Mediterranean climate, international connectivity, healthcare services, and a diverse property portfolio suitable for both residence and investment. Its accessibility and quality of life make it especially appealing to European buyers.

Are foreign buyers purchasing mainly for lifestyle or investment?

Most international buyers in 2026 follow a hybrid strategy, seeking properties that enhance their quality of life while also serving as stable long-term real estate assets. This dual objective is one of the main reasons why Spain remains a top destination for foreign property investment.

Key market insights for 2026

Foreign property buyers in Spain remain a key driver of the real estate market.
International demand continues to be stable based on the latest available data.
Costa Blanca stands out as a strategic destination for international buyers.
Buyers increasingly combine lifestyle relocation with investment objectives.
Move-in-ready and energy-efficient homes are the most in-demand property types.

Overall, the combination of stable international demand, lifestyle appeal, and long-term investment potential explains why Spain — and especially Costa Blanca — continues to attract foreign property buyers in 2026.

Following a particularly strong 2025, with more than €18.4 billion in real estate investment and a 31% year-on-year increase, Spain has outperformed the European average and consolidated its position as a priority destination for international investors. In markets such as the Costa Blanca and the Costa Cálida, this trend translates into greater interest in residential assets, second homes and projects linked to the “living” segment.

Real estate investment in Spain 2026 tops the European ranking

According to CBRE, Spain tops the European real estate investment ranking in 2026, ahead of the United Kingdom, Poland and Italy, while Portugal ranks sixth. This leadership is driven by a combination of structural factors such as economic growth, strong housing demand and limited supply in certain segments of the market.

The report is based on the outlook of nearly 700 investors across Europe and confirms a growing preference for Southern Europe, where Spain stands out for its market stability, liquidity and medium- to long-term return potential.

Strong investment growth after a record 2025

Spain’s leadership in real estate investment follows a particularly dynamic 2025. Investment reached €18.4 billion, the highest level since 2018, driven by the gradual return of international capital and more favourable financing conditions.

Looking ahead to 2026, CBRE’s Real Estate Market Outlook forecasts a further increase in investment of between 5% and 10%, placing total volume between €19 billion and €21 billion. This growth is supported by a more stable monetary environment and a gradual improvement in access to financing.

International capital shows strong preference for Spain

The study also highlights that nearly half of cross-border investors consider Spain their main destination due to its return potential. This preference is explained by several key factors:

• strength of the Spanish economy
• high housing demand
• limited supply in residential segments
• attractiveness of the tourism and residential market

In areas such as the Costa Blanca and the Costa Cálida, where international buyers play a structural role, this investor interest reinforces demand for both primary residences and second homes.

The “living” sector, the top investor choice in 2026

In terms of sector preferences, the residential or “living” segment has consolidated its position as the preferred asset class, chosen by 34% of European investors. It is followed by:

• Logistics (25%)
• Offices (13%)
• Retail (12%)

This is particularly relevant for coastal residential markets, where international demand and limited housing supply continue to drive investor interest.

Real estate market outlook for 2026

The report points to a scenario of moderate confidence. Around 89% of investors expect their acquisition activity to increase or remain stable in 2026, while 83% anticipate that selling activity will also rise or remain stable.

In addition, industry experts note that international capital has firmly established its presence in Spain, indicating a structural shift in investment preferences within the European real estate market.

Conclusion

Spain’s leadership as a real estate investment destination in Europe in 2026 confirms the strength of its property market and the growing interest of international capital, particularly in the residential sector. The combination of solid demand, limited supply and economic attractiveness positions the country as a strategic market in the medium and long term.

At Esentya Estate, we help international buyers and investors identify secure opportunities in the Costa Blanca and the Costa Cálida, offering professional guidance and in-depth local market knowledge.

Sources: CBRE, Idealista

In areas such as the Costa Blanca and the Costa Cálida, where international buyers play a structural role in the market, these figures help explain why demand remains strong, why resale properties continue to dominate transactions, and why provinces such as Alicante remain especially prominent.

Foreigners purchased homes in Spain in 2025: key figures

Although the relative weight of foreign buyers declined slightly compared to previous years (14.6% in 2024 and 15% in 2023), overall market growth offset this adjustment.

In 2024, international buyers purchased close to 93,000 homes in Spain. In 2025, this figure increased by almost 5%, reaching nearly 97,300 transactions. This confirms that foreign demand remains a key pillar of the Spanish property market, even in a context of rising prices.

Most active nationalities

During the fourth quarter of 2025, the highest volumes of foreign purchases were recorded among:

• British buyers

• German buyers

• Dutch buyers

• French buyers

• Belgian buyers

This profile is fully aligned with the typical European buyer seeking a second home or a long-term residential investment on the Spanish coast.

Resale housing reaches historic highs

Resale properties continued to dominate the market. In 2025, more than 556,000 resale home transactions were recorded, accounting for nearly 79% of total sales.

New-build properties also grew, exceeding 149,000 transactions, but their development remains constrained by the limited supply of new construction in many regions.

In the Costa Blanca and the Costa Cálida, this situation reinforces the importance of existing housing stock, where factors such as property condition, legal documentation and location are decisive for international buyers.

Alicante and the Mediterranean coast at the centre of foreign demand

One of the most striking figures of 2025 is the weight of foreign buyers in the province of Alicante, where they accounted for approximately 45.7% of all transactions.

At regional level, the highest shares of foreign purchases were recorded in:

• Balearic Islands

• Valencian Community

• Canary Islands

• Region of Murcia

• Catalonia

• Andalusia

This confirms that international demand continues to concentrate in regions offering favourable climate, good air connectivity and housing products tailored to overseas buyers.

House prices reach new record levels

Average house prices maintained their upward trend in 2025, increasing by 9.5% year on year to reach €2,354 per square metre, according to the Property Registrars.

Both new-build and resale properties closed the year at record price levels, a dynamic that is particularly noticeable in areas with strong foreign demand.

Mortgage activity also increases in 2025

Mortgage lending also grew significantly. In total, nearly 498,500 mortgages were granted in 2025, representing a 14.5% increase compared to 2024. In the final quarter of the year, around 74% of home purchases were completed with mortgage financing.

However, housing affordability indicators deteriorated slightly, with the average mortgage payment representing around 33.8% of household income, highlighting the need for careful financial planning by buyers.

Conclusion

In 2025, foreigners purchased homes in Spain at a pace close to 100,000 transactions, consolidating their key role in the property market. Regions such as the Valencian Community and the Region of Murcia, and particularly the province of Alicante, remain top destinations for international buyers.

At Esentya Estate, we assist international buyers throughout the entire purchase process on the Costa Blanca and the Costa Cálida, offering professional advice and carefully selected properties with clear documentation and transparent procedures.

Sources: Spanish Property Registrars (Real Estate Registry Statistics), Idealista

The key point is understanding that being able to buy a property is not the same as being able to mortgage it or legally live in it. Below, we explain what happens when these documents are missing and how this impacts mortgage approval in Spain.

What is the cédula de habitabilidad and what is it used for?

The cédula de habitabilidad is the document that certifies that a property meets the minimum legal requirements to be used as a dwelling. While the exact criteria vary by autonomous community, it generally confirms:

• a minimum usable surface area,

• adequate ceiling heights,

• the existence of a kitchen and bathroom,

• proper ventilation and natural light,

• compliant doors and windows,

• basic hot water supply,

• and minimum safety standards.

The inspection is carried out by a registered architect or technical architect.
The cost is usually low (often under €200) and the document typically has a validity of around 15 years, after which it must be renewed if the property is sold or rented, depending on regional regulations.

Is the cédula de habitabilidad mandatory to buy a property?

From a strictly legal standpoint, it is not always mandatory to complete a purchase, but the absence of a cédula of habitability can seriously complicate matters.

Without it:

• you cannot register as a resident (padrón),

• it may be impossible to connect or transfer utilities (water, electricity or gas),

• home insurance companies may refuse to provide cover,

• and most importantly, the property is usually not eligible for a residential mortgage.

For this reason, although the sale itself may go through, the risk for the buyer is considerable.

Do banks grant mortgages without a cédula de habitabilidad?

As a general rule, no.
Spanish banks only grant residential mortgages on properties that are officially recognised as habitable.

If a property lacks a cédula de habitabilidad or a first occupancy licence, banks consider that it does not meet the minimum legal requirements to be used as a home and therefore cannot be accepted as mortgage collateral.

In very specific cases, the only alternatives may be:

• a loan for a commercial property or non-residential use,

• or a self-builder / developer loan.

These products usually come with shorter repayment terms and higher interest rates, making them unsuitable for most residential buyers.

What if the property also lacks a first occupancy license?

This situation is even more problematic.
The first occupancy licence is issued by the local council and certifies that the building has been completed in accordance with the approved project and may legally be used as a residence.

If a property has never been granted this licence:

• it is considered not legally authorised for residential use,

• registering a mortgage at the Land Registry is usually impossible,

• utility connections are generally denied,

• and the buyer cannot register as a resident.

In areas such as the Costa Blanca and the Costa Cálida, this issue can occasionally arise in older properties, undeclared refurbishments or buildings with urban planning irregularities.

Can you buy a property without a cédula de habitabilidad?

Yes, but these transactions usually involve:

• properties classed as “out of planning order”,

• homes with unresolved urban planning issues,

• or older buildings that have never been regularised.

In such cases, the mortgage valuation is significantly affected. The appraisal value is often well below the market price and, as a result, the bank will not approve a mortgage.

Mortgage valuers always assess the legal and urban planning status of the property. If there are irregularities, the risk is transferred directly to the buyer.

What happens if I buy a property without these documents?

The buyer assumes full responsibility.
If they decide to keep the property, they must usually:

• undertake the legalisation process (if it is possible),

• cover the technical and administrative costs involved,

• or accept that the property cannot legally be used as a residence.

In some cases, regularisation is not possible at all, which is why proper due diligence before signing is essential.

Differences between the first occupancy license and the cédula de habitabilidad

Conclusion

Buying a property without a first occupancy licence or a cédula de habitabilidad may seem attractive in some cases, but it involves serious legal, financial and practical risks, especially when mortgage financing is needed.

Before committing to a purchase, it is essential to review the legal and urban planning status of the property. Early checks can prevent major problems later on.

At Esentya Estate, we help international buyers purchase property safely on the Costa Blanca and the Costa Cálida, carefully verifying documentation and guiding them through every step of the process.

Sources: regional housing regulations, banking practice, mortgage valuation criteria, Idealista