Else Beekman
The luxury property market in Spain remains resilient, despite the government’s decision to end the ‘golden visa’ scheme in April 2025. Experts expect the decision about this programme, which grants residency to foreign buyers of properties over €500,000, will have minimal impact on the high-end real estate sector.
Despite the policy shift, the demand for luxury homes in Spain remains strong. The high-end property sector has seen consistent growth in both prices and sales. According to real estate professionals, the interest from wealthy international buyers continues to fuel the market. Above that, this interest is far outweighing the influence of the golden visa programme. “The golden visa’s abolition may cause some short-term adjustments, but we do not anticipate a major impact,” says Alvise Da Mosto, Associate Director at Barnes Spain in La Vanguardia.
15,000 residency permits
Since its introduction in 2013, the golden visa programme has issued over 15,000 residency permits tied to property investments, mostly from citizens of countries like China, Russia, the UK, and the US. However, these transactions have represented a small fraction of overall property sales in Spain. In fact, foreign buyers made up just 18% of all residential transactions between the third quarter of 2023 and 2024, with only 66% of them being non-residents. The majority of these purchases were in the €500,000 to €600,000 range, which is considered high-end but not strictly luxury.
Limited impact of the golden visa on prices
The luxury property market in cities like Barcelona and Madrid is largely driven by a different set of factors. These include limited supply and long-term investment opportunities. According to real estate agencies specialised in premium homes, the golden visa has not been a primary factor in price increases or the volume of transactions. “The luxury market operates independently, influenced by a strong demand for exclusive properties in cities like Barcelona, where the price per square metre has risen by 75% over the past decade,” they say in the same newspaper.
Barcelona’s limited supply of high-end properties is pushing prices even higher. The current price per square metre for premium homes is now standing at €8,000. This is 70% higher than the average price in the city. Real estate professionals predict an annual price increase of 5% for refurbished luxury properties.
Government’s proposal to tax foreign buyers
Apart from the abolition of the golden visa some within the sector are concerned about the government’s proposal to introduce a 100% tax on property purchases by non-resident foreigners. This measure is still in the early stages and requires parliamentary approval. However, real estate agencies are urging buyers to act quickly before any potential changes take effect and harm the image of the market and discourage foreign investment.
Growth in luxury property transactions
Over recent years, Spain has seen a surge in the availability of luxury homes, particularly those priced above €800,000. The number of properties in this category has increased by 150% since January 2019, with prices rising by 28% during the same period. Areas like Málaga, Alicante, the Balearic Islands, Barcelona, and Madrid have seen the highest concentration of these luxury properties. In some regions, the average price now exceeds €2 million.
Five Spanish regions dominate luxury property market
As of August 2024, Spain’s luxury real estate market is highly concentrated, with nearly 80% of properties priced over one million euros located in just five regions. The Balearic Islands lead the way, making up 24.1% of luxury listings, followed by Málaga with 20.9%, particularly the Costa del Sol, popular for its sunny climate and luxurious lifestyle. Madrid, the capital, holds 12.5% of the market, while Alicante and Barcelona account for 11.2% and 10.9%, respectively.
These areas continue to attract wealthy buyers, both domestic and international, with the ultra-luxury segment (properties over three million euros) particularly thriving in the Balearic Islands and Málaga.
Also read: American buyers flock to Mallorca’s luxury property market