Foreign buyers account for 25% of home purchases in the Canary Islands

This Percentage Has Tripled in the Last 15 Years

The purchase of housing by foreigners in the Canary Islands represents 25.30 %, according to data from the Property Registrars compiled by the mortgage‑comparison and advisory service iAhorro.

Laura Martínez, Director of Communication and spokesperson for iAhorro, explains that foreign buying acts as an “additional” pressure element in very specific enclaves, but it does not alone explain the widespread housing‑access problem in Spain.

“The solution lies in increasing supply, especially affordable housing, speeding up urban planning processes, and creating a stable framework that allows us to build more and better. Blaming only the foreign buyer oversimplifies a problem that is structural and complex,” Martínez asserted.

iAhorro also emphasizes that the inflow of foreign capital has positive effects on the Spanish economy, such as job growth and an increase in Gross Domestic Product (GDP) observed in recent years.

“The problem is that this growing demand arrives at a time when supply is insufficient. Not enough is being built to meet either domestic or foreign demand, and this is compounded by legal uncertainty—real or perceived—and more profitable alternatives like short‑term or vacation rentals, which thrive precisely because of that scarcity,” the spokesperson added.

The firm stresses the need to differentiate between individual foreign buyers and other market actors.

“Foreign buyers usually acquire a second residence or a home for retirement. They do not buy primarily to resell. In contrast, investment funds seek profitability, either by renting out the property or by waiting for price appreciation,” they highlighted.

According to the Property Registrars’ data up to September 2025, collected by iAhorro, 13.58 % of home buyers in Spain held foreign nationality, while 86.42 % were Spanish nationals.

In 2007, international buyers accounted for only 8.29 % of total purchases, meaning the share has risen by 63.81 %. However, the past two years have seen a slight correction: after reaching a historic peak of 14.98 % in 2023, the proportion has fallen by more than one percentage point.

“Foreign demand is another source of pressure, but it is neither the only nor the most important one. Still, the fact that purchases have tripled since their lows 16 years ago, in a market already strained by a lack of supply, amplifies that pressure,” Martínez explained, adding that the pressure is concentrated in specific areas rather than in affordable housing.

The Islands and the Levant Concentrate Foreign Purchases

Registrars’ data show that the islands and the Mediterranean arc are the main attraction poles. In the Balearic Islands, nearly three out of ten buyers are foreign, at 29.46 %, roughly 16 points above the national average.

• Valencian Community: 27 %
• Canary Islands: 25.30 %
• Region of Murcia: 21.89 %
• Catalonia: 15.05 %

These figures contrast sharply with much of the interior and northern mainland, where the share of foreign buyers ranges between 2 % and 4 % (nine to eleven points below the national average) in regions such as Extremadura, Galicia, Castile and León, Cantabria, and the Basque Country. Even in Madrid—one of the country’s most strained markets—international buyers represent only 6.85 % of total purchases.

Regarding the origin of this demand, the Registrars confirm a clear European predominance, though notable shifts have occurred in recent years. On average, foreign citizens purchase Spanish homes at €2,251 per square metre, but this figure masks significant variations:

• North American buyers pay the highest average price, €4,314 per square metre.
• African buyers are at the opposite end, paying only €1,074 per square metre.
• Buyers from South America and Central/Caribbean America average around €2,100 per square metre.