German demand for Spanish property cools after a strong run

German buyers are still an important force in Spain’s foreign property market, but the latest Land Registrar figures show demand cooling after the post-pandemic boom.

Spanish property acquisitions involving a buyer from Germany reached 1,510 in the first quarter of 2026, according to the latest figures from the Spanish Land Registrars’ Association.

That was down 7.2pc compared with the same period last year, whilst total foreign demand fell by a milder 3.2pc. So German demand underperformed the wider foreign market in the latest quarter.

Even so, German demand was still 12.6pc above its ten-year average for the first quarter, which puts the decline in context. This is a cooling market, not a weak one.

Still well above 2016 levels

Taking 2016 as a base of 100, the German buyer index stood at 169 in Q1 2026. In other words, German demand is still almost 70pc higher than it was in 2016.

The wider foreign market index stood at 193, so German demand has not grown quite as strongly as foreign demand overall, but it remains well ahead of pre-pandemic levels.

Market share near the bottom of its range

German buyers accounted for 6.1pc of all foreign purchases in Q1 2026, compared with a ten-year high of 9.5pc and a low of 6.4pc.

That puts Germany’s share close to the lower end of its recent range, suggesting other nationalities are now doing more of the heavy lifting in Spain’s foreign buyer market.

The rolling trend points lower

Looking at the four-quarter rolling total, German buyers acquired 6,241 homes in Spain over the latest twelve-month period.

That was down 1.8pc compared with the previous quarter, and the rolling total has now declined for three consecutive quarters.

The takeaway is that German demand is cooling, but remains relatively resilient. German buyers are still active in Spain, especially in the islands and Mediterranean coastal markets, but they appear to be more cautious and selective than during the recent boom.