International demand, Euribor and a record half-year for hotels

August has not slowed the market: this week brought the most complete picture of Spanish luxury residential so far this year, Euribor edged upwards, and hotel investment figures confirmed an exceptional first half. Four brief notes for anyone buying, selling or investing in the prime segment.

International buyers dominate ultra-luxury — but not in Madrid

The 2026 Spanish Luxury Housing Market Report, prepared by Catella for Hiscox and released this week, puts foreign buyers at 60% of ultra-luxury demand, with segment prices 30% higher than five years ago. On the coast the dominance is near total — Benahavís approaches 84% of purchases by foreigners and Andratx 79% — while in Madrid city international buyers account for just 14% of transactions: prime Madrid rests on solid local demand, a distinctive trait that gives the market depth and stability.

Euribor edges up in August

The provisional August average for Euribor stands at around 2.92%, up from the 2.855% at which July closed, according to daily records from specialist trackers. The European Central Bank held rates at 2.25% at its 23 July meeting and does not meet again until September. For buyers using financing, the message is stability with mild upward pressure: the market's best fixed-rate offers start at around 2.10% nominal — still a reasonable cost of capital in historical terms.

Prime Madrid moderates its pace

As background context: according to the Diza Consultores report covered by Idealista in late July, luxury housing in the Madrid region grew 3.2% in the second quarter, down from 4.7% at the start of the year, with twelve-month accumulated sales 7.3% lower. This is not a correction but a moderation after years of intense growth — and, in our reading, a sign of maturity that favours well-structured transactions over opportunistic ones.

Hotels: a record first half

Consolidated first-half figures, published in July, place hotel investment in Spain between €2.46 and €2.53 billion depending on the consultancy (Colliers and Cushman & Wakefield respectively), with year-on-year growth above 26% and the islands concentrating close to half the volume. After a 2025 that closed above €4 billion, the sector is heading for a possible new annual record. For the Horlux Capital investor the reading is clear: Spanish hotel assets continue to attract institutional capital, and access to off-market product is more valuable than ever.