Record of foreigners investing in luxury housing in Spain: "I would never buy a house that I could not increase its resale value"

A record number of foreign investors have turned their attention to luxury real estate in Spain, with one British mother of four, Robyn Ethell, sharing her experience of investing in a high-end property near the coast. According to reports, Spain has become a preferred destination for international buyers seeking both security and potential financial returns, particularly in the luxury housing market. Robyn, originally from Britain and currently residing in Oxford, had long considered buying a home in Spain during her summer vacations. Her in-laws owned a house in Denia, and after discussions with friends who owned seaside villas, she decided to invest in the Valencia region. The decision came into focus when the pandemic hit Europe hard, prompting the family to relocate permanently. Robyn sought a safer environment for raising her four children in a tranquil area where they could live without constant worry. She purchased her first residence in 2019 for around 370,000 euros, despite its poor condition. She and her family undertook all necessary renovations themselves. When they moved in permanently with their four children and her mother, they found the house too small for seven people. They assessed the property and sold it, eventually purchasing a more spacious home with a stunning pool and ocean views that had been on the market for five years. She bought it once it was priced within their budget, having already made up her mind that she would never buy a home unless it offered investment potential. Robyn's passion lies in renovating properties, which keeps her busy while her children attend school. This means her beachfront mansion is now for sale, and she is searching for another property valued between one million and 1.5 million euros. She must convince her husband, who acts as her financial director, that this is a worthwhile investment. She notes that prices have surged, affecting the profitability of such transactions compared to previous years when purchases and sales were typically between 200,000 and 400,000 euros. She expects to achieve similar returns as before, provided expectations are met. The trend reflects broader shifts in the Spanish real estate market, with Madrid emerging as a key location for international buyers. A recent report by Knight Frank highlights how Madrid remains accessible for high-net-worth individuals, offering more square meters per million euros than other major cities. The city’s residential prime segment saw a 5% increase in 2025, with average prices rising from 890,000 euros in 2020 to 1.72 million euros in early 2026. International buyers account for 46% of these transactions, indicating a structural change in the market. Paloma Pérez, head of Dils Lucas Fox, an agency catering to VIP clients, explains that the market has evolved significantly. Previously dominated by German and British buyers in the Balearics and Madrid, it now sees a diverse range of nationalities, including 150 different ones in Marbella alone. This diversity underscores Spain’s growing appeal as a global hub for luxury real estate investments.