Foreign buyers now account for a staggering 60% of demand for ultra-luxury property in Spain, as prices at the top end of the market have surged by 30% in just five years.

Spain is cementing its position as a magnet for the world’s wealthy, according to the 2026 Luxury Housing Market Report, commissioned by specialist insurer Hiscox and produced by real estate consultancy Catella.

The report describes the sector as being in an ‘excellent moment’, with strong demand and Spain increasingly establishing itself as a destination for high-net-worth individuals.

International buyers are driving much of that boom, particularly in the country’s most exclusive coastal enclaves.

Foreign buyers were behind an estimated 60% of demand in the ultra-luxury segment, while international purchasers across the wider Spanish property market were operating at an annual pace of around 130,000 transactions in 2025, according to the report.

Non-resident foreigners are also paying the highest prices per square metre, reflecting their preference for prime locations and premium properties.

That demand has helped push luxury property values steadily higher, with prices increasing by approximately 30% over the past five years.

Malaga among the epicentres of Spain’s luxury boom

The market is heavily concentrated in just a handful of destinations.

The Balearic Islands, Malaga, Madrid and Barcelona together contain 83% of all Spanish properties valued at more than €3million.

But there is a dramatic difference between the profile of buyers in coastal luxury destinations and major cities.

Few places demonstrate the scale of international demand better than Benahavis, the wealthy municipality bordering Marbella on the Costa del Sol.

An extraordinary 84% of luxury properties purchased in Benahavis are bought by foreigners, according to the report.

It makes the Malaga municipality one of the clearest examples of how international wealth is shaping Spain’s high-end housing market.

Benahavis is home to some of the country’s most exclusive residential developments, including the famous La Zagaleta estate, and has long attracted wealthy buyers from across Europe and beyond.

A similar picture emerges in Andratx in Mallorca, where foreigners account for 79% of luxury property sales.

The figures stand in stark contrast to Madrid.

Despite being one of Spain’s principal luxury markets, foreigners account for just 14% of high-end transactions in Madrid city.

That increases slightly to 17% in neighbouring municipalities such as Alcobendas, but the capital’s luxury sector remains overwhelmingly supported by domestic wealth.

Golden Visa abolition has ‘practically zero’ impact

The figures also suggest that one of the biggest recent changes to Spain’s rules for wealthy foreign property investors has done little to dampen demand.

Spain officially abolished its so-called Golden Visa on April 3, 2025, ending the scheme that had offered residency to qualifying non-EU investors, including those purchasing at least €500,000 worth of property.

But according to the report, removing the programme has had a ‘practically zero’ impact on property transactions.

Golden Visa-related purchases had represented only around 0.5% of total transactions, meaning its disappearance has barely registered in the wider market.

The report argues that wealthy buyers purchasing Spanish luxury property are generally motivated by factors that extend far beyond gaining residency.

‘The investor in the luxury segment acquires properties guided by reasons of lifestyle, security and residential quality,’ the analysis said.

It added that investment levels among these buyers were typically far above the former €500,000 minimum required under the Golden Visa programme.

The findings provide further evidence of the growing divide within Spain’s property market, with international wealth continuing to pour into premium coastal destinations even as affordability becomes an increasingly pressing issue for domestic buyers.

And on the Costa del Sol, where some of Spain’s most expensive homes are concentrated, foreign money remains firmly at the heart of the luxury property boom.

Read more Andalucia news at the Spanish Eye.