Best Places to Buy a Property in Spain in 2025

Where to buy property in Spain is the second most popular question after "how much does it cost." About 90% of English-speaking buyers (and other non-residents) choose resort regions, while a smaller percentage purchase homes for permanent residence in central and northern Spain.

The Spanish property market in 2025 remains one of the most dynamic in Europe, fueled by a combination of economic recovery, demographic shifts, and evolving buyer preferences. The average  property price in August 2025 stands at approximately 2,498 €/m², marking a steady increase compared to previous years. This growth is driven by both domestic demand and international interest, particularly from European buyers seeking vacation homes, investment properties, and retirement destinations.

Despite the healthy demand, Spain faces ongoing supply constraints. The issuance of new construction licenses has not fully recovered to pre-pandemic levels, limiting new housing stock. This supply shortage is compounded by rising construction costs, including materials and labor, which have led to slower project completion times. As a result, existing properties, especially in prime coastal areas, have seen significant price appreciation.

Spanish buyers continue to show a strong preference for homes that offer privacy, space, and outdoor amenities. There is increased interest in properties with terraces, gardens, and proximity to nature, reflecting lifestyle changes that emphasize health, well-being, and flexible work arrangements. Detached houses, villas, and countryside homes have risen in popularity, while demand for smaller urban apartments has softened in some regions.

Foreign buyers remain a key driver of the market, especially in historically popular regions such as Costa Blanca, Costa del Sol, and the Balearic and Canary Islands. Northern Europeans, particularly from the UK, Germany, and France, are actively acquiring properties for both holiday use and investment. Additionally, easing travel restrictions and improved digital services for remote transactions have facilitated international purchases.

Spain’s rental market, particularly in major cities and tourist hotspots, has also seen a rebound. Rental yields remain attractive compared to other European markets, drawing investor interest. New regulations focusing on sustainable and long-term rentals are influencing market dynamics, encouraging property owners to align with evolving legal frameworks.

Looking ahead, experts forecast moderate price growth, supported by ongoing demand and limited supply. The focus on energy-efficient and sustainable housing developments is expected to shape new construction projects. Infrastructure improvements, including transport connectivity and digital services, will continue to enhance the appeal of Spanish real estate.

In summary, 2025 presents a balanced yet upward-trending Spanish property market that offers opportunities for buyers and investors willing to navigate regional nuances and market conditions.

These regions are favored for their unique appeal, from stunning coastal views to vibrant cultural scenes and strong rental markets. Below is a snapshot of the top destinations where foreign demand remains high in 2025.

When choosing property in Spain, consider these main factors:

• Climate and season length
• Price per square meter
• Transport accessibility (airport and flight availability)
• Infrastructure (quality of roads, shops, restaurants, medical facilities, schools)
• Demographics and national composition of residents
• Terrain type (mountains, plains, mixed)
• Local attractions and cultural offerings
• Beach quality and access to water sports/marinas

The first four criteria often weigh most heavily in buyer decisions.

In the next chapter, we will provide an overview of the most popular regions for property purchases among foreigners.

The Valencian Community continues to be one of the most affordable yet highly sought-after regions among foreign buyers. The area includes three provinces running from north to south: Castellón, Valencia, and Alicante.

Costa Calida

Murcia, specifically the Costa Cálida coastline, is rapidly gaining popularity as a prime destination for property investment in 2025. The region offers a balanced combination of affordability, lifestyle appeal, and growing international demand. The average property price as of mid-2025 is around €1,500 per square meter, making it one of Spain’s most cost-effective coastal markets with significant growth potential.

Foreign buyers contribute nearly 25% of all transactions in this region, attracted primarily by new-build homes, luxury villas, and properties located near golf resorts and Mediterranean beaches. Notable hotspots include Cartagena, Los Alcázares, and San Pedro del Pinatar, where prices can command a premium due to demand for modern amenities and lifestyle facilities.

Murcia’s property market benefits from several strong drivers: a limited supply of new housing relative to demand, ongoing infrastructure improvements—including expanded airport facilities and high-speed rail links—and a vibrant rental market offering some of the highest rental yields in Spain, ranging between 7.5% and 8%. The region’s growth is supported by a steady influx of Northern European buyers, particularly from the UK, Germany, and the Nordic countries.

Barcelona

Barcelona remains one of the most sought-after and expensive property markets in Spain. Coastal districts such as Diagonal Mar, Poblenou, and Vila Olímpica continue to attract strong demand, as do prestigious central neighborhoods like Pedralbes, Sarrià, and Sant Gervasi. The average price across the province is approximately €3,000/m², while prime areas within the city can see prices soar up to around €5,000/m² as of mid-2025, reflecting a 10.2% year-on-year increase.

Rental prices for a decent one-bedroom apartment in Barcelona is around €1,350 per month, although in the most desirable neighborhoods rents can be significantly higher. The city's cost of living is notably above the national average, with monthly expenses per person averaging around €820, excluding rent, according to Numbeo.

Barcelona’s property market is driven by a combination of limited supply, high foreign investment (comprising nearly 30% of buyers), and ongoing urban renewal projects. Despite rising prices, it remains a hotspot for investors and homeowners seeking vibrant city life combined with coastal amenities.

Costa Del Sol

Marbella and its surrounding neighborhoods attract buyers with above-average budgets. Demand is stable, and recent trends show a shift of attention from Catalonia to this region, mainly because the price-to-quality ratio here is higher. In 2025, the average price of real estate on the Costa del Sol ranges from €2,200 to €6,500 per square meter. In areas like the Golden Mile and Estepona, you can find modern villas with direct beach access—something almost impossible to find on the Costa Brava.

Tenerife

On the largest island of the archipelago, you will find literally everything: from the volcanic landscape of the Teide mountain reserve to the spectacular resorts in the south, featuring picturesque coastlines, fantastic sandy beaches, and World Heritage sites. The average property price in the Canary Islands in August 2025 is approximately €3,284 per square meter.

To sum up, here is a table of Spanish regions, the most popular among foreigners and investors.

The main advice for property buyers is to clearly define your key criteria. Understanding what matters most to you helps filter out unsuitable options and approach your search more efficiently.

Criteria include the purpose of purchase (summer home, investment, study accommodation, holiday apartment, etc.), climate, surrounding infrastructure, and more. For beginners, considering all potential pitfalls can be challenging, so it’s best to rely on facts and professional guidance. With experience across various Spanish regions, VirtoProperty experts are ready to consider all buyer preferences and help make the right choice!