Historic Supply Crunch
Spain’s housing market is experiencing a historic supply crunch. According to new data from Spain’s largest property portal Idealista, the number of homes for sale in the country fell by 20% year-on-year in the first quarter of 2025. This is the largest year-on-year drop ever recorded since Idealista began keeping records.
This nationwide trend is putting pressure on buyers and shifting the dynamics in many of the most in-demand coastal provinces, particularly those popular with foreign homebuyers.
Key Data: Annual Change in Housing Stock (Q1 2025)
Below is a summary of the annual variation in the number of homes for sale in five popular provinces – Málaga, Alicante, Balearic Islands, Canary Islands, and Murcia – along with their provincial capital cities:
| Province | Province Variation (%) | City Variation | (%) |
|---|---|---|---|
| Las Palmas | -17% | Las Palmas de Gran Canaria | -22% |
| Santa Cruz de Tenerife | -7% | Santa Cruz de Tenerife | -19% |
| Balearic Islands | -17% | Palma | -21% |
| Murcia | -18% | Murcia | -21% |
| Alicante | -16% | Alicante | -20% |
| Málaga | -9% | Málaga | -3% |
What the Numbers Mean
The Idealista report highlights a 20% nationwide drop in for-sale listings compared to Q1 2024. In some interior provinces, the decline exceeds 30%, but even in coastal areas with robust demand, the trend is clear: there are fewer homes available to buy.
Murcia Province (−18%)
Murcia province’s housing supply contracted more sharply than the national average, suggesting increasing demand or slower turnover in the resale market. The capital city, Murcia, also showed a steep decline of 21%, pointing to tight conditions in both urban and non-urban areas.
Alicante Province (−16%)
Alicante Province, a key market for international buyers, saw a 16% drop in housing stock. This likely reflects strong absorption by second-home buyers and investors. The capital city, Alicante, also declined by 20%, which aligns with the provincial trend.
Málaga Province (−9%)
The decline in Málaga province is more moderate compared to the national average. Notably, Málaga City, saw only a 3% drop in listings. This indicates a relatively more stable market in the provincial capital. However, the dataset does not provide figures for other municipalities within the province, so local variations are possible.
Balearic Islands (−17%)
The Balearic Islands, another key second-home destination, experienced a 17 percent drop in housing stock. The capital, Palma, saw a sharper 21 percent decline, indicating a more pronounced tightening of supply in the urban center. This reflects ongoing demand pressure in island markets, where new supply is naturally limited.
Canary Islands
The province of Las Palmas saw a significant contraction, with a 17% drop overall and 22% in its capital, Las Palmas de Gran Canaria.
Santa Cruz de Tenerife, in contrast, had the mildest decline at the provincial level with a 7% reduction. However, its capital city saw a 19% fall, suggesting a tighter supply within the urban centre compared to the surrounding areas.
What This Means for Foreign Buyers
For international buyers looking at Spain’s coastal markets:
- Competition is increasing. With fewer homes available, desirable properties are receiving more interest and selling faster.
- Prices may remain firm, as reduced supply limits seller motivation to negotiate.
- Buyers need to act decisively, especially in markets where supply has fallen sharply.
In provinces like Alicante, Murcia, and the Canary Islands, where listings are down by 16 to 18% a historic supply crunch, foreign buyers may encounter bidding situations or limited availability within their preferred budgets.
Although Málaga province appears somewhat more stable overall, conditions can vary widely within each region. This dataset does not include municipality-level data beyond the provincial capitals, so figures for areas like Marbella or Torrevieja are not reflected here.
