Spain property news: Canary Islands boom, squatter protections update, and new build surge

Canary Islands lead Spanish property growth surge

The Spanish property market is showing no signs of cooling down, with January 2025 marking a strong start to the year. A healthy 60,033 homes were sold across Spain, according to the latest data from Spain’s Notaries and the Spanish Land Registry – an 8.8% increase compared to January 2024, building on 2024's impressive 11.5% growth.

However, savvy buyers know that not all Spanish regions are created equal when it comes to growth potential. The Canary Islands are currently leading the pack with a stellar 18.8% year-on-year growth, followed by Andalucía (10.4%), the Balearic Islands (8.3%), Valencia (7.9%), and Murcia (5.6%).

Meanwhile, property prices rose by 6.9% across Spain in 2024, with the Balearic Islands experiencing a remarkable 15.2% increase in price per square metre. Only Navarra bucked the trend with a slight decrease (-0.9%). For international buyers, this highlights the importance of choosing your Spanish paradise wisely – location matters more than ever.

Alicante's foreign buyer boom continues, with Eastern Europeans leading the charge

Alicante property is officially an international affair, with foreigners now accounting for more than half of all property sales in the province. According to the Valencia Notary Association, non-Spaniards made 30,290 purchases last year – a staggering 50.6% of all sales.

While British buyers still lead the international pack with 3,545 deals, that's actually 10% down on the previous year. Traditional markets like Germany and France also saw declines, but Eastern Europeans are picking up the slack in impressive fashion.

Polish purchasers have emerged as the fourth-largest international buyers, snapping up 2,850 properties – a 32% increase on the previous year and five times higher than pre-pandemic levels. Lithuanian buyers also increased by 32.2%, with other Russia-bordering nations showing similar growth.
Foreign buyers are spending an average of €198,000 per home – 12% more than in 2023 and about €67,000 more than Spanish buyers. All told, international property purchases generated more than €6 billion for Alicante province last year – approaching the €7 billion brought in by exports from the area's industries and agriculture combined. Eastern Europe's love affair with Spanish sunshine is clearly just getting started.

New builds dominate Spanish property market

Spain's property market is experiencing an interesting shift, with new construction now accounting for 23.4% of all sales – the highest figure since March 2015, according to Spain’s National Institute of Statistics. This surge reflects the growing shortage of available resale properties across the country.
January saw 14,164 new-build transactions, a dramatic 30.9% year-over-year increase that far outpaced existing property sales. Andalucia and Madrid led the new-build charge with 3,221 and 2,225 units respectively, followed by Valencia (1,941) and Catalonia (1,793).

This trend marks a significant shift in the market, though it's still far from the 2008-2013 period when new builds regularly exceeded 50% of monthly transactions. Developers continue to face challenges including labour shortages, high construction costs, suitable land scarcity, and permit delays – all of which contribute to the premium pricing of new properties. For buyers, this means acting decisively when you find a new development that ticks all your boxes – hesitation could leave you watching someone else enjoy your sunset views.

Teruel: Spain's best-kept property secret revealed

Never heard of Teruel? You're not alone. This overlooked province in eastern Aragón has somehow remained Spain's best-kept secret despite offering stunning landscapes and eye-wateringly affordable properties. With average asking prices around a mere €55,000, it's officially Spain's cheapest province for property hunters, according to the latest data from Kyero.

Bordered by Tarragona, Castellón, and Valencia, Teruel's eastern areas put you just an hour's drive from Costa Blanca's dazzling shoreline – without the coastal price tag. The province boasts 236 municipalities, yet more than half are villages with fewer than 200 inhabitants, making it Spain's second-least populated province after Soria.

Significant depopulation since the mid-20th century has left behind a landscape dotted with ghost towns, which, whilst slightly eerie, presents extraordinary opportunities for adventurous property buyers seeking authentic Spanish living at bargain prices. Rural revival, anyone? Your Instagram followers won't know what hit them.

Spain crowned top destination for digital nomads in 2025

Digital nomads searching for their next perfect base should look no further than Spain, which has claimed the top spot in VisaGuide's Digital Nomad Index for 2025. The country outranked competitors like the UAE and Montenegro thanks to its winning combination of tourism appeal, reasonable living costs, and excellent healthcare system.

The index evaluates countries based on six key criteria: living costs, minimum income requirements, taxation, internet speed, healthcare quality, and tourism popularity. Spain's few drawbacks include a relatively high minimum income requirement (digital nomads must earn over €2,140 monthly to qualify for a visa) and internet speeds that, while perfectly adequate, don't quite match some global leaders.

With the rise of remote work showing no signs of slowing down, Spain's combination of lifestyle appeal and practical benefits makes it an irresistible choice for location-independent professionals looking to combine work with Mediterranean living. Laptop and sangria here you come. 

Tourist area property prices soar 80% above national average

If you've been eyeing up that dreamy coastal apartment, you might want to check your bank balance twice. Housing prices in Spain's top tourist destinations have hit record highs, with the average price in major holiday hotspots exceeding €3,300 per square meter for the first time – a whopping 83% higher than in non-tourist areas.

According to CaixaBank Research, the gap between tourist and non-tourist municipalities has never been wider. Their study analysed 306 Spanish municipalities with more than 25,000 inhabitants, defining tourist destinations as those where at least 10% of spending on bank POS terminals comes from foreign cards.

This exclusive club of 64 locations includes Madrid, San Sebastián, Mediterranean provincial capitals like Barcelona, Valencia, Alicante, and Palma, plus Costa del Sol gems like Málaga, Estepona, Fuengirola, and Marbella. Santiago de Compostela and Ibiza also made the cut. The price of paradise, it seems, continues to climb faster than a determined tourist tackling Montserrat.

Benidorm goes green with smart tourism award

Benidorm, once the poster child for mass tourism, has reinvented itself as an eco-conscious destination, scooping the European Commission's "Green Pioneer of Smart Tourism 2025" award. The Costa Blanca resort town beat six other European cities for the prestigious title, confirming its commitment to sustainable tourism since 2015.

The transformation focuses on clever water management, expanded green spaces, and new cycle lanes. Most impressively, water consumption has dropped by 18% compared to 25 years ago, despite the resident population growing by 40% and tourist overnight stays increasing by 26%. That's right – Benidorm is officially doing more with less.

Social sustainability hasn't been overlooked either, with the city's 2017 Accessibility Plan making urban spaces more friendly for those with additional needs. Improvements include acoustic and vibrating traffic lights plus flat platforms across more than 40 streets and avenues. Turns out you can teach an old tourist town new tricks.

Catalonia named first European Region of Gastronomy for 2025

Food-loving property hunters, take note – Catalonia has just been named the first ever European region to receive the designation of World Region of Gastronomy for 2025. The recognition, promoted by the International Institute of Gastronomy, Culture, Arts, and Tourism, celebrates regions that enhance residents' quality of life through sustainable agriculture and culinary heritage.

The prestigious title will bring a feast of gastronomic activities to the region throughout 2025, including an International World Region of Gastronomy Week featuring markets, pop-up restaurants, wine tastings, and cultural events. The celebration will culminate with Àpat Catalunya, a grand dinner party in Barcelona showcasing the most iconic dishes of Catalan cuisine.

For property buyers with a passion for food, this additional layer of cultural richness makes Catalonia an even more appetizing investment. Just be prepared for your property viewings to take twice as long as you succumb to tapas temptation at every turn.

Spain bans smoking on beaches in sustainability push

Spain has officially joined the global movement for cleaner, healthier beaches by introducing smoking bans along its coastlines. Following the lead of countries like Australia, France, and Portugal, the initiative aims to reduce pollution, protect marine ecosystems, and create a more pleasant beach experience for all.

Since a 2021 law empowered local governments to restrict smoking in outdoor areas, dozens of Spanish municipalities have implemented beach smoking bans. The list of newly smoke-free beaches includes popular spots like L'Albir Beach in Alicante, Levante and Poniente Beaches in Benidorm, Barceloneta, Nova Icaria, and Bogatell in Barcelona, and Malvarrosa Beach in Valencia.

The move aligns with growing local opposition to over-tourism and represents Spain's commitment to preserving its natural coastal beauty. For property buyers, this means cleaner beaches and potentially higher property values in areas committed to sustainable tourism practices. Breathe easy – your beach day just got a little bit healthier.

Alicante named Spanish Capital of Gastronomy for 2025

Food lovers, rejoice – Alicante has been crowned the Spanish Capital of Gastronomy for 2025, taking over from 2024 titleholder Oviedo. Known as the 'city of one thousand and one rice dishes,' Alicante's culinary landscape showcases an unrivalled passion for Mediterranean cuisine, with rice at the heart of its identity.

With 1,700 dining establishments, including Michelin-starred and Repsol Sol certified restaurants, Alicante offers a diverse and distinguished food scene that punches well above its weight. The annual Alicante Gastronómica fair is a highlight for foodies, inviting visitors to taste, savour, and learn from top culinary experts.

For property hunters with a penchant for paella and a soft spot for seafood, Alicante's latest accolade adds another compelling reason to consider this Mediterranean gem for your next investment. After all, what's a dream home without dream dining just around the corner?

Catalonia's property prices surge amid tourism boom and supply shortage

Barcelona's property market is heating up with industry experts predicting a 10% price increase for sales and 4.57% for rentals across Catalonia in 2025, according to the 22nd edition of the Real Estate Barometer by UCI and Sira.

While Catalonia's growth is substantial, the Region of Murcia (15%) and Valencian Community (12.4%) are expected to see even higher increases. SIRA director Francis Fernández explains, "Barcelona remains a key destination for living," noting that limited development opportunities and high demand continue to drive prices upward.

CaixaBank Research reveals tourist destinations now command record premiums, with average property prices in popular hotspots exceeding €3,300 per square meter – 83% higher than in non-tourist areas. Their analysis identified 64 tourist locations including Barcelona, Valencia, Alicante, and Costa del Sol favourites like Málaga and Marbella.

Spain's holiday rental regulations tighten

Spain's holiday rental landscape is shifting rapidly with several recent legal changes affecting property owners who rent to tourists. New regulations now require tourist licenses (VUT) to be in the name of the actual property manager rather than the owner, making managers directly responsible for regulatory compliance.

Additionally, a Royal Decree has established a unique national registry for all tourist properties, requiring registration by July 1, 2025. Perhaps most significantly, from April 3, 2025, buyers must obtain permission from communities of owners in urbanisations, who can reject holiday rental use with a 3/5 majority vote – a stark change from the previous system where owners could freely obtain licenses if not explicitly prohibited.

These regulations will create uncertainty for property buyers with rental income plans. Given the complexity and potential financial implications, we strongly recommend consulting with a local lawyer experienced in Spanish property law before proceeding with any purchase intended for tourist rental. We plan to publish a more comprehensive analysis in the coming weeks once legal experts have reached consensus on how these new rules could be applied in practice. So watch this space! In the meantime, check out this interview with Kyero’s own Spanish property market expert Alfredo Bloy Dawson, as he discusses the upcoming changes with estate agent’s Karen Ayat Issa and Sebastian Sanchez-Stewart from Swish Marbella. 

Spain strengthens property rights with new anti-squatting laws

Spain is set to implement significant changes to its squatting regulations on April 3, 2025. The new legislation will allow authorities to detain squatters on the same day a property is illegally occupied, with legal proceedings lasting a maximum of 15 days. This represents a dramatic improvement from the previously lengthy eviction process.

The streamlined procedure will also substantially reduce legal costs for homeowners. While media coverage has sometimes exaggerated Spain's squatting issues, these regulations demonstrate the government's commitment to protecting the rights of property owners.

For detailed information about these legal changes, listen to this analysis provided by friends of Kyero, lawyers Peter Franke and Francesca Pienariu, who recently discussed the implications of the new regulations coming into force.