The luxury real estate market in Spain continues to attract foreign capital. Idealista has published a report identifying five destinations where foreign buyers acquire the most expensive properties. Prices start from €3 million, while the maximum value exceeds €20 million.
Costa del Sol remains the main centre of demand
The “Golden Triangle” of the Costa del Sol remains the epicentre of foreign demand for luxury housing. Marbella, Estepona and Benahavís together offer more than 5,000 properties priced above €3 million.
In Benahavís, foreigners account for 42.6% of demand, in Marbella the figure reaches 41.5%, and in Estepona – 42.8%.
Madrid, where this segment includes between 500 and 1,000 luxury properties, attracts 10.7% of foreign buyers, and this figure is growing year after year. Calvià in Mallorca ranks fifth: the share of foreign demand there stands at 48.8% – the highest figure in the ranking, although the number of available properties ranges between 500 and 1,000.
Who buys ultra-luxury homes
US citizens lead searches for ultra-luxury properties in Marbella and Madrid. British buyers rank first in demand in Estepona and second in the other four destinations.
Germans, in turn, prefer Benahavís and Calvià, although they are also among the top three in Marbella and Estepona. Dutch buyers focus on Estepona, Scandinavians pay particular attention to Benahavís and Calvià, while Mexicans, together with other Latin American buyers, concentrate their attention on the Spanish capital.
The most common profile is a wealthy investor with high purchasing power, more than €5 million in liquid assets, seeking diversification outside their home country.
The “Golden Triangle” offers secluded villas in Spain with private plots, while Madrid attracts buyers with the advantages of a major city and more favourable taxation following the recent reduction in wealth tax.
What types of property foreigners choose
The dominant property type in all four coastal destinations is single-family homes. In Benahavís, villas account for 77% of demand, in Marbella – 67.59%, in Calvià – 66.82%, and in Estepona – 54.59%.
In Madrid, the preferred property type is apartments in Spain, with the Salamanca district becoming the benchmark for the capital’s luxury real estate market.
The most expensive properties are searched for in Benahavís. The price range from €5 million to €10 million accounts for 40% of foreign demand, and almost one third of buyers are considering properties worth more than €10 million.
In Marbella, the €3 million to €5 million price range attracts 52% of foreigners, but 17% are already looking at mansions priced between €10 million and €20 million.
Price growth offsets moderate yields
The most significant indicator highlighted by the report is the concentration of capital in the highest price ranges. Although gross yields, meaning annual rental profitability before expenses, in these areas remain at a modest 3–4%, property value growth compensates for this rate.
According to data obtained by comparing information from valuation companies and portals, all five destinations recorded double-digit price growth in the super-luxury segment during the last financial year.
Forecast for the coming months
The trend is expected to remain upward over the next six months. The strengthening of the dollar against the euro, combined with the legal stability provided by the Spanish market despite the Housing Law, will continue to support active demand from the United States.
Idealista’s analysis indicates that foreign interest in Madrid will continue to grow, approaching 12% by the end of the year, while on the Costa del Sol figures above 40% will remain without significant fluctuations.
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