Under today’s market conditions in Spain, becoming a homeowner is getting more difficult. The number of transactions in Q2 2025 declined, largely due to the continued rise in prices. The buyer profile has also shifted – purchasers now tend to have higher purchasing power.
Recent data from several organizations and industry experts show that the prevailing profile in the Valencian Community is a 41-year-old man with a high income and socio-economic status, who in most cases uses a mortgage.
While most buyers are locals, the share of foreigners is notable — especially on the coast of the province of Alicante, where they account for 45% of transactions. According to a Fotocasa survey, 51% of respondents earn more than €2,500 per month; in 31% of cases they live with a spouse and children, and in 28% — with a spouse only.
Among people aged 35–44 the number of purchases is decreasing, whereas in the 45–55 segment it is growing. Although in recent years there were more cash purchases without bank financing, the trend has changed. Most buyers of a primary residence (70%) now use mortgage financing — partly thanks to lower rates and softer bank terms. See also: Mortgages in Spain in 2025 – Complete Guide.
According to Spain’s National Statistics Institute (INE), in May the number of home mortgages registered in the Valencian Community rose by 77.7% year-on-year, far above the national figure of 54.4%. In total, 5,583 mortgage contracts for homes were signed, for an overall amount of €702.6 million.
The average mortgage amount is €125,117 with an average term of 24.83 years and an interest rate of 3.17%, slightly above the national average (3.02%). The average monthly payment is about €607 (roughly 29.2% of salary).
The overwhelming majority of buyers choose resale, free-market homes. It is also worth noting the number of new owners who became such through inheritance: in June, 18% of recorded transactions were linked to inheritances, although at the end of 2024 this share was much higher — 26.56%.
The average price of housing purchased by Spanish residents in the Valencian Community is €147,719, while foreigners pay on average €167,012. This reflects the new reality of the local market, where foreign buyers often have greater purchasing power and more options.
In Q2, foreign buyers made 28% of purchases — double the national average (14.1%). In Alicante their share reaches 45%, driven by strong European demand and especially by digital nomads from northern Europe. In Q1 2025, Italians led with 254 purchases, followed by Ukrainians (204), who surpassed Romanians (175).
Experts agree the market has entered a lull and a period of price stabilization. Rents also appear to have stopped rising, although the situation remains tight. Some landlords have overpriced properties, asking €1,200–€1,300 per month for apartments in very poor condition. The share of investment-purpose purchases fell from 13% to 10% year-on-year. As the rental market looks less attractive due to rising prices and tension, part of this capital is shifting to other cities.
In short, the typical home buyer in the Valencian Community in 2025 combines high purchasing power with frequent use of mortgages, bets on the resale market, and coexists with a strong foreign-buyer segment that influences pricing dynamics — especially along the coast. After several years of euphoria, a period of moderation and adjustment is expected.
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