The Great Wealth Migration, KF report

These are my takeways from the Knight Frank European Lifestyle Report 2025, which analyses wealth migration, relocation patterns, and property markets across Europe. For estate agencies and professionals active in Spain and the Costa del Sol, the findings highlight key changes in buyer demand, regulation, and market performance that are shaping international real estate activity in 2025.

Who is moving? High-net-worth individuals (HNWIs) and international investors are relocating in greater numbers

Where are they coming from? The largest groups are buyers from the UK, US, France, Scandinavia, Mexico, Colombia, China, and Switzerland. Each Spanish region attracts a different profile. For example, Latin American buyers are more concentrated in Madrid, while northern Europeans dominate the Costa del Sol

What are they looking for? Stability, lifestyle, and the ability to balance family needs with financial planning.

Where are they going? Spain is among the most attractive destinations, alongside Portugal, Greece, and Ireland

Why now? Tax reforms, political uncertainty, and visa changes are prompting many to reassess their options. Spain’s climate, accessibility, and established expat hubs continue to attract buyers.

When is this happening? 2025 is a key year, with the end of Spain’s Golden Visa programme and new rental rules affecting investment decisions

How are buyers responding? Focus is on prime markets such as Madrid, Marbella, Barcelona, and the Balearic Islands. Many choose to rent before buying and are giving more weight to factors such as education, connectivity, and long-term resilience

Spain’s Market Performance

According to the Knight Frank European Lifestyle Report 2025, Spain is one of the strongest performers in Europe for GDP growth forecasts, and this is reflected in its property markets. Prime residential prices have increased in most areas:

• Madrid: +6.4% (€14,100–14,800 per sqm)
• Marbella: +5.7% (€9,600–10,100 per sqm)
• Barcelona: +2.0% (€8,400–8,900 per sqm)
• Balearic Islands: -0.3% (€15,100–15,800 per sqm)

Forecasts for 2026 show continued growth in Madrid (+5%), Marbella (+4%), and Barcelona (+2%), while the Balearics are expected to stabilise after recent declines.

End of the Golden Visa

In April 2025, Spain closed its Golden Visa programme, which had been one of the most popular residency routes for non-EU investors, especially from Latin America and China (Knight Frank, 2025). This change narrows access to residency via property purchases and is likely to redirect interest toward other EU countries offering similar schemes.

Rental Market Regulations

Spanish authorities are tightening rules on short-term rentals to address affordability and housing pressures:

• Madrid: From April 2025, new tourist rentals require 60% approval from other property owners in the building. No new licenses will be issued until 2026.
• Barcelona: Tourist rental licenses will be phased out entirely by 2029. Private room rentals are already banned.
• Balearics (Mallorca and Ibiza): New licenses are suspended until 2026, with existing ones valid under restrictions.

While these measures primarily target holiday lets, they influence investor returns and long-term strategy.

Who Is Buying in Spain and From Where?

Demand remains highly international, with distinct buyer groups by location:

• Madrid: Mexico, US, and Colombia
• Marbella: UK, Sweden, and Netherlands
• Barcelona: France, UK, and Belgium
• Balearic Islands: UK, Belgium, and Switzerland

This regional variation shows that Spain attracts different segments of global wealth. Latin Americans are concentrated in Madrid, northern Europeans in Marbella, and a mix of European buyers in Barcelona and the Balearics.

Education as a Relocation Factor

International schools continue to be a decisive factor for relocating families. Institutions such as Aloha College in Marbella and the American School of Madrid offer bilingual or international curricula with strong university pathways, reinforcing Spain’s appeal for long-term relocation.

Outlook

Despite the closure of the Golden Visa programme and stricter rental regulations, Spain remains one of Europe’s leading destinations for international property investment. Strong economic growth, favourable regional tax exemptions, and the combination of lifestyle, accessibility, and established expat networks position markets such as Madrid, Marbella, and Barcelona for continued demand in 2025 and beyond.

Key Takeaways

• Spain is one of Europe’s strongest performers for GDP growth and prime property values.
• Prime markets in Madrid (+6.4%), Marbella (+5.7%), and Barcelona (+2.0%) have seen growth, while the Balearics declined slightly (-0.3%).
• Forecasts for 2026 show continued growth in Madrid, Marbella, and Barcelona, with the Balearics stabilising.
• The Golden Visa programme ended in April 2025, reducing residency options for non-EU investors.
• Rental regulations are tightening in Madrid, Barcelona, and the Balearics, affecting investor returns.
• Buyer origins vary by region: Latin America in Madrid, northern Europe in Marbella, western Europe in Barcelona and the Balearics.
• International schools remain an important factor for relocating families.
• Despite regulatory changes, Spain continues to be a leading destination for international investment.