According to the latest idealista report, the Canary Islands have become one of Spain’s most sought-after destinations for foreign homebuyers. The archipelago represents 7.6% of all mortgages taken out by non-Spanish citizens, ranking just behind the Valencian Community (27.5%), Andalusia (20.5%), and Catalonia (14.6%).
Germans Lead the Market
During the third quarter of 2025, German citizens accounted for 17.1% of all foreign mortgage applications for residential properties in Spain — consolidating their position as the leading group of foreign buyers.
They were followed by the British (13.7%), French and Swiss (8.7% each), and the Dutch (8.3%). The top ten nationalities also included the United States (5.1%), Belgium (4.2%), Ireland (4.1%), Sweden (2.6%), and Italy (1.9%).
Together, these nationalities represent nearly three-quarters of all foreign mortgage demand in Spain, with the remaining 25.6% split among other countries with smaller shares. Overall, foreigners made up 3.9% of total mortgage demand during the period.
Record-Breaking Figures for Germany
The report highlights that the current German share is the highest in the historical series.
In 2024, Germans had already overtaken the British as the top nationality for mortgage applications through idealista, but the difference was minimal — just six-tenths of a percentage point (15.3% vs. 14.7%). One year later, the gap has widened to 3.4 percentage points, confirming Germany’s growing dominance.
The French also showed a notable increase, rising by two percentage points over the summer to reach 8.7%, matching Switzerland for third place. However, French demand remains below the 2023 peak, when it exceeded 10% of all foreign mortgage applications.
British and American Demand Slows
While British nationals remain the second-largest group of foreign mortgage applicants, their share of 13.7% marks the third-lowest in the past 11 quarters, signalling a break in the upward trend seen earlier in 2025.
Demand from U.S. citizens has also lost momentum. The report notes that their share, now around 5%, is the lowest on record, after fluctuating between 7.5% and 10% since 2023. This is the first time Americans have fallen out of the top five, currently ranking sixth.
By contrast, the Netherlands continues to gain ground, now maintaining a stable share above 8%, surpassing the U.S. in mortgage demand.
Sweden Rising, Italy Falling
Sweden has moved up in the rankings, overtaking Italy. Swedish buyers not only apply for the largest average mortgage amounts (nearly €210,000) but also seek the most expensive properties, averaging €301,000 — well above the national foreign-buyer average of €243,000.
Average Foreign Mortgage: €176,140
Most foreign mortgage applications are for properties located in coastal areas, including the Canary Islands. The average mortgage amount requested by foreign buyers is €176,140, and in 70.8% of cases, applicants need less than €200,000 to purchase their chosen property.
The average home price stands at €244,000, about 2% higher than last year.
Foreign applicants have an average monthly income of €6,422, though the figure varies significantly by nationality.
- Swiss and U.S. buyers lead with average household incomes exceeding €9,000 per month.
- Swedes follow with €7,350, while Italians rank lowest, averaging under €5,000 per household.
On average, foreign borrowers are 43 years old, request 75% financing, and maintain a low debt-to-income ratio of around 25%, reflecting a generally solid financial profile.
A Booming Market Driven by Stability and Climate
The continued rise in foreign property purchases in the Canary Islands reflects the region’s appeal as a stable investment destination, with a mild year-round climate, favourable living conditions, and strong tourist demand.
According to idealista, the current level of foreign participation in the market marks a historic high — illustrating that never before have so many foreigners bought so many homes in the Canary Islands.
