German citizens have overtaken British buyers in the first quarter of 2025, becoming the most significant foreign group applying for mortgages in Spain, underscoring Germany’s growing role in the Spanish real estate sector.
In the first quarter of 2025, a significant shift has occurred in the Spanish mortgage market: German citizens now lead the demand among foreign buyers, surpassing British purchasers. According to data from idealista/hipotecas, Germans accounted for 16.6% of all foreign mortgage applications, a new peak that highlights Germany’s increasing importance in the Spanish real estate sector.
Foreign Interest in the Spanish Housing Market Continues to Rise
Despite a tight market characterized by low availability and rising prices, Spain remains a highly attractive destination for real estate purchases. Property prices have seen a robust year-on-year increase of 12.2% – the strongest surge since 2007. Foreigners now constitute 21% of all home purchases in Spain, a substantial rise from just 7.5% in 2007.
Beyond personal use, capital investment plays a crucial role. Many foreign buyers acquire properties in Spain for rental purposes or as a secure financial investment.
Who is Buying Property in Spain? Top 10 Foreign Mortgage Applicants in 2025
The composition of foreign buyers applying for mortgages in Spain reveals a clear trend. Here are the top 10 foreign mortgage applicants in 2025:
- Germany: 16.6 %
- United Kingdom: 14.2 %
- Switzerland: 8.7 %
- USA: 7.7 %
- France: 7.5 %
- Netherlands: 6.9 %
- Ireland: 4.4 %
- Belgium: 4 %
- Italy: 2 %
- Sweden: 1.9 %
The data clearly indicates a significant increase in demand from German-speaking countries and the United States.
Loan Amounts and Income Differences by Nationality
Interesting disparities are also evident in the requested loan amounts and the income of buyers. German buyers apply for an average of 148,946 Euros, significantly below the overall average of 180,601 Euros for all foreign applications. Buyers from Switzerland and the USA lead in terms of mortgage amounts, applying for over 200,000 Euros.
Income differences are also substantial: The average foreign mortgage applicant earns 6,572 Euros per month – almost double that of Spanish buyers (3,379 Euros). Swiss and US citizens lead with an average monthly income exceeding 9,000 Euros.
Preferred Regions, Interest Rates, and Buyer Profile
The typical foreign buyer is between 40 and 42 years old and primarily seeks properties in coastal regions. Particularly popular are:
- Comunidad Valenciana: 26.8 %
- Andalusia: 21.1 %
- Catalonia: 14.5 %
Madrid, the Balearic Islands, the Canary Islands, and Murcia also show strong demand.
Regarding mortgage interest rates, the majority of foreign buyers opt for fixed rates. A substantial 84% prefer this option, while only 4% still choose variable mortgages, indicating a clear preference for predictability and security in a volatile market environment.
Spain Remains a Hotspot for International Real Estate Investors
The attractive climate, high quality of life, stable returns, and a comparatively affordable real estate market within Europe continue to make Spain a magnet for international investors. The strong interest from Germany, as well as the increase in buyers from Switzerland and the USA, impressively confirm this trend. In 2025, the Spanish real estate market is more international than ever, and there is much to suggest that this trend will continue in the coming years.
