Else Beekman
The Spanish property market continues to attract growing numbers of American investors—especially since Donald Trump returned to the White House. That’s according to Humphrey White, CEO of Knight Frank Spain, who told Expansión that US interest in Spanish real estate has intensified in recent years, not declined.
White, who has led the real estate consultancy in Spain for nine years, highlighted Spain’s growing appeal to international investors. “Trump’s policies have encouraged more Americans to enter Spain’s real estate sector,” he said. “They often start by buying a home, and then move into commercial assets.”
Socio-political uncertainty in the US has also been cited by other sources as a factor driving private American investment in Spain. Beyond financial motives, many are drawn to the country by its lifestyle, safety, and more stable social climate.
Andalucia’s luxury real estate market attracts global investment
Surge in US demand for luxury homes
The luxury residential segment has seen a significant uptick in American interest. Buyers from the United States, who were virtually absent from Madrid’s high-end property market just a few years ago, now represent 8% of purchases. That puts them behind only Spanish investors (55%) and those from Latin America (33%).
Several factors contribute to this shift. White pointed to changing tax conditions in the UK, which previously attracted wealthy Americans via London. Now, Spain’s tax regime—featuring incentives such as the so-called Beckham Law—has made it a more attractive alternative.
“This surge is not a trickle—it’s massive and recent,” White added. He noted that wealthy Americans are increasingly bypassing traditional routes and heading straight to Spain for property investment.
Recent data confirms that Americans are not only buying more but also paying more than any other nationality for Spanish property. According to Reuters, they paid an average of €3,390 per square metre in 2024—nearly 30% more than British buyers—making them the highest-spending foreign group.
Where do Americans rank among foreign residents in Spain?
Institutional capital less affected
Despite Trump’s recent tariff threats, White has not observed any significant slowdown in institutional investment from the US. “There’s been no drop in interest, nor have deals been paused,” he said, adding that investors have faith in Trump’s pragmatic approach and his desire not to damage the US economy.
However, American investment in Spain’s office sector has declined somewhat. White expects this to change later in the year, predicting a “substantial increase” in office investments during the third and fourth quarters of 2025.
Insurers and private investors typically hold office space in the central business areas of Madrid and Barcelona, and they rarely sell these assets. In contrast, suburban offices—largely owned by investment funds—have seen more hesitation, especially due to uncertainty linked to hybrid working.
Return to offices likely
White remains optimistic about the office sector’s prospects. He argues that office attendance boosts productivity and says Spain has the highest workplace attendance rate in Europe—almost back to pre-Covid levels. This, combined with steady occupancy and stabilising interest rates, should drive a return of institutional capital.
“Liquidity is abundant globally,” he said. “Though raising funds is slightly tougher post-Covid due to ongoing rate uncertainty, the appetite for real estate remains strong.”
Sector growth and structural challenges
According to White, Spain’s real estate investment has exceeded expectations, bolstered by a strong logistics segment, steady recovery in office and retail, and major opportunities in hotels and residential-linked assets.
He praised Spain’s broader economic strategy in recent years, highlighting the shift away from construction-led growth and towards services, including tourism, tech, and higher education.
However, he warned that housing remains a serious issue. White called for a major rethink on land use policy to stimulate new residential development. He criticised ideological regulation—such as rental caps and the mandatory 30% allocation for affordable housing in new builds—which he believes restrict supply and push up both purchase and rental prices.
End of ‘golden visa’ programme
Another important development is the recent end of Spain’s ‘golden visa’ programme. In April 2025, the Spanish government officially scrapped the scheme, which had granted residency permits to non-EU investors who spent at least €500,000 on property. Though it had attracted significant foreign capital, the government cited concerns over affordability and housing access. American buyers are now increasingly relying on alternative routes such as the digital nomad visa.
Sources: La Expansión, Daily Beast, Reuters
Spain’s Golden Visa scheme to end on April 2, 2025