Part 2 – Agents’ and Professionals’ Opinions

Survey Spain put the following questions to 35 individuals representing a wide range of professionals across Spain’s property sector — including agents, lawyers, valuers, and consultants. Below is a representative sample of the responses received.

Questions Asked:

• With reports of fewer tourists than expected, are you or your contacts seeing any reduction in property demand?
• Who is buying and who is selling?
• What price ranges are most in demand?
• New build vs resale?
• Are developments continuing, or is there any hesitation?
• What impact is the tourist rental licence requirement having?
• Are more people offering longer-term leases?
• Are buyers/sellers reconsidering due to licence restrictions or ownership costs?
• Anything else?

Property Marketing Consultant (Costa del Sol)

• Demand Reduction? Not really — but this year’s seasonality seems completely out of sync.
• Buyer/Seller Profile? No major shifts. The surge in Polish buyers seen since COVID and the start of the Ukraine war has slowed. Swedish demand has yet to rebound.
• Price Range? Depends on location. Under €250K apartments are in high demand but almost no supply. In the mid-market, key-ready villas between €1M–€3M are highly sought after, though also limited.
• New Build vs Resale? Both are performing well, though proportionally, new builds appear stronger in main Costa del Sol areas.
• Developments? Still going strong.
• Tourist Licence Effect? Confusion and uncertainty. It hasn’t dampened demand, but agents struggle to confirm which developments/urbanisations allow short-term lets. High-end properties are largely unaffected as they are rarely rented.
• Longer Leases? Foreign holiday homeowners aren’t keen — if they rent long-term, they lose access themselves. There may be a slight trend toward seasonal (31-day to 11-month) rentals, but that’s speculative.
• Sales Impact? Yes — especially in the mass market, where buyers often rely on rental income.
• General Trend? The market is shifting from seller-driven to buyer-driven — but sellers haven’t realised it yet.

Buyer’s Agent (UK/Ireland/Belgium focus)

The beautiful town of Estepona n the province of Malaga, Spain.

• Demand Reduction? Not at all.
• Buyer/Seller Profile? Few sellers, continued strong demand from UK, Irish, and Belgian buyers.
• Price Range? €250K–€500K.
• New Build vs Resale? Mostly resale.
• Developments? No hesitation observed.
• Tourist Licence Effect? Clients prefer knowing the community permits tourist rentals.
• Longer Leases? No.
• Sales Impact? No.

Investment & Planning Specialist

• Inquiries remain very low and the year has been tougher than the last.
• A German client backed out of a purchase due to fear around obtaining a tourist licence. They rely on rental income, and approval from the community would only come post-purchase.
• Existing licences can’t be transferred — a key deterrent.
• Platforms are dominated by large agencies with huge inventory; independent agents with limited listings struggle to generate leads affordably.

Estate Agent – Mijas

• Demand Reduction? Quieter than last year. Idealista reports a 2% YoY drop in May home sales — the first since March 2024. Prices may be deterring buyers.
• Buyer/Seller Profile? Still a mix — no single nationality dominates.
• Price Range? Broad — €240K to €525K based on current viewings.
• New Build vs Resale? Mostly resale, but supply is still 50% below pre-COVID. This pushes some to new builds, though 3-year waits are unattractive.
• Developments? Continuing, but pricing is surprisingly high — flipping margins could be tight.
• Tourist Licence Effect? Too early to say. Communities that allow rentals may have slightly higher demand, but this varies by buyer.
• Longer Leases? No strong signs — rent demands are increasingly high.
• Sales Impact? Not directly. But legal uncertainty around licences and reversibility of community decisions may deter pure investment buyers.
• Market Outlook? Annual price growth since 2013 may be unsustainable. 2022 was the best year in decades, but 2025 will likely be quieter.

Investor/Developer Consultant

• Demand Reduction? Interest remains, though timelines for private buyers are slower.
• Buyer/Seller Profile?
• Funds: Large uptick in American investment funds targeting multifamily and VPO projects.
• Private Buyers: Swedish interest in €300–€500K homes is returning now that SEK has stabilised.
• Price Range?
  • Funds: €50M+
  • Private buyers: €300K–€500K
• New Build vs Resale?
  • Funds: JV opportunities and long-term rental development
  • Private: Mostly resale unless beachfront or prime location
• Developments? Continuing with no hesitation.
• Tourist Licence Effect? Some annoyance — buyers want to offset annual costs via rentals.
• Longer Leases? Can’t comment.
• Sales Impact? One client opted to sell due to tourist licence restrictions — not affordability, but frustration.

Survey Spain Valuer (Retired) – Mojacar

• Mojacar is booming — prices now exceed 2008 peaks.
• Asking prices reach €2,500–€3,000/m².
• Supply is tight, and change seems unlikely unless government reforms are implemented.

Survey Spain Valuer & Inspector – Costa Blanca / Murcia

• Demand remains steady despite lower tourist numbers. UK, German, and Eastern European buyers remain active.
• Sellers include individual owners and small investors.
• Hot properties: €2,500–€4,000/m² coastal homes.
• New builds appeal to foreigners; Brits still prefer resale.
• Licensing laws have increased long-term rental stock as some owners step away from short-term letting.
• Holiday lets still generate gross yields of 7–10% in hotspots.

Survey Spain Valuer – Valencia & Balearics

Plaza de la Virgen in Valencia old town

• Tourist licence reforms caused disruption, but occupancy is up 2.9% YoY in Valencia; Balearics over 84% occupancy.
• Active tourist licences now boost property value when listed.
• Market deceleration driven by low supply and high prices.
• Valencia saw a 19% annual increase; Jávea and Balearics command €3,000–€4,500/m².
• Foreign buyers make up 30% of the market; national buyers prefer apartments in urban centres.
• Environmental and energy ratings now factor into official property valuations.

Sotogrande Estate Agents

• Price Surge: Average sales prices are up 30% since 2023; prime properties now exceed €17M.
• Buyer Profile: HNWIs from Eastern Europe, US, LATAM, and the Middle East.
• Family Appeal: International School drives interest.
• Sustainability: New builds feature solar panels and energy-efficient designs.
• Limited Stock: Competitive bidding is common.
• Future Outlook: EU-Gibraltar agreements may boost appeal further.

International Lawyer

• Interest Rates: Falling rates could stimulate borrowing and growth.
• Who’s Buying?
  • Sellers: Primarily British.
  • Buyers: Americans — drawn by FX strength and post-election disillusionment.
• Where to Buy?
  • Not buying now personally — but sees opportunity in Catalonia due to regulatory overreach pushing out funds.
• Bubble Risk?
  • Yes. Prices are overvalued by 20–30% in some regions (especially Madrid).
  • Madrid has become a victim of its own economic success, attracting 8/10 foreign euros.
• 100% Tax on Non-EU Buyers?
  • Pure political theatre. Such a move would breach EU laws on investment freedom and won’t materialise.

Madrid city skyline at twilight, Spain

Acknowledgements

Thank you to the following contributors, in alphabetical order:

• Bloy-Dawson Consulting
• Coast Estates – Sotogrande
• Franke y de la Fuente Abogados
• Investor/Developer Consultant – Costa del Sol
• Larraín Nesbitt Abogados – Marbella and UK
• Noll Sotogrande
• PPMQuilES – Valuer & Architect – Costa Blanca South
• Real Time Realty
• Rimolo & Grosso – Architects – Costa Blanca North & Balearics
• Space Real Estate
• Survey Spain Valuers – Mojacar, Valencia, Costa Blanca
• Windsor Consultants