Americans and Mexicans Drive Surge in Spanish Property Market

According to official data in 2019, the Spanish property market is experiencing a significant surge in purchases from American and Mexican buyers, with transactions skyrocketing by 255 percent since 2019. This increase coincides with discussions in Spain about implementing restrictions or additional taxes on non-EU, non-resident buyers to address housing affordability concerns.

A report from the College of Registrars reveals that Mexican and U.S. nationals are now acquiring Spanish properties at unprecedented rates. Although they still lag behind buyers from European Union nations and the UK, their numbers have been rising dramatically.

In 2020, citizens from these two North American countries purchased 620 properties in Spain. By 2024, that number had surged to 2,199, reflecting a sustained upward trend that began in 2014 but accelerated sharply following the COVID-19 pandemic.

Madrid, Barcelona, and Valencia at the Forefront

Industry experts predict continued growth in the number of American and Mexican buyers, particularly in Madrid, Barcelona, and Valencia. Real estate professionals attribute this trend to Spain's stability, security, and high quality of life. Additionally, the strength of the U.S. dollar against the euro has made Spanish real estate particularly attractive to American investors.

Madrid has seen a notable rise not only in property acquisitions but also in the number of North American tourists, partly due to expanded air travel routes. The city's business and educational reputation further enhances its appeal. Many wealthy Mexican families are purchasing properties in Madrid to accommodate their children studying at prestigious business schools. These transactions are made in cash and concentrated in the luxury housing market.

Valencia’s Growing Popularity Among North Americans

North American buyers have outpaced other foreign investors in acquiring luxury properties in Valencia. Industry leaders point to increased media coverage in the U.S. highlighting Valencia's appeal, which has drawn more foreign residents and investors to the city. Experts suggest that Spain’s lifestyle, economic stability, and investment incentives have made the country a prime target for U.S. investors, particularly those of Latin American descent.

Spain’s Position as a Global Real Estate Hotspot

Beyond North American buyers, Spain still attracting significant foreign investment from other regions. In 2024, African nationals led non-EU property purchases with 6,431 transactions, followed by Asian buyers with 5,331 and South Americans with 4,198.

The Balearic Islands ranked as the most sought-after location for foreign buyers, with 32.5 percent of all purchases made by non-Spaniards. Valencia followed closely with 28.45 percent, while the Canary Islands (27.25 percent) and Murcia (24.68 percent) also remained popular. Alicante emerged as the top province for foreign buyers, with 43.08 percent of transactions involving international investors, followed by Málaga (34.76 percent) and Santa Cruz de Tenerife (32.71 percent).

Possible Restrictions on Foreign Buyers

Amid growing concerns over housing affordability, Spanish authorities are considering limiting non-EU, non-resident property purchases. Potential strategies include implementing higher taxes on foreign buyers or imposing outright purchase restrictions. Whether such measures will be enacted remains to be seen, but the ongoing debate highlights the challenges of balancing foreign investment with local housing needs.

Spain continues to be a prime destination for international buyers, particularly from North America, as demand for its real estate market remains stronger than ever.