Buying property in Spain: in which areas to invest for sustainable profitability?

The tourist influx, the strong growth of the market as well as the attractiveness of the real estate price - among others -, have erected Spain in a kind of "real estate investment paradise". In reality, the Iberian Peninsula is a country where this type of investment is very lucrative. This applies to all regions of the country. Obviously, as a real estate investor, you will be able to ask yourself: "which areas should be preferred for my real estate purchase in Spain? "

Our experts understand the stress that this embarrassment of implicit geographic choice can cause you. By following their advice, you can be sure to choose well where to invest in Spain for a certain fruitfulness.

The Spanish Mediterranean coast: the infallible geographic choice for real estate profitability?

The Mediterranean coast is the Spanish part most appreciated by investors - both local and foreign. From Catalonia to the other big cities, this area generates significant real estate transactions.

The community of Valence: the favorite region of the French for a profitable real estate investment?

The availability of real estate and the accessibility of its prices make Valencia one of the areas to focus on when buying real estate in Spain. The most famous real estate reference in this region is the coast of the Province of Alicante (Costa Blanca). In one year, Alicante was able to record 41.81% of the real estate transactions carried out on the Spanish real estate market.

In addition, if you plan to make a rental investment, choose the Costa del Azahar and the Costa de Valencia. In these two regions, the first clientele in terms of tourism is the French. The latter represent, for example, 54% of foreign tourists visiting the Costa del Azahar.

Investing in Spain: what profitability in big cities?

With mainly economic and demographic growth (on the one hand) and the development of town planning and tourism (on the other hand), real estate demands are increasing in major Spanish cities. This situation offers good opportunities for operators who invest in resale as well as those who opt for a rental investment. In all cases, prefer Madrid, Barcelona and San Sebastian - for their real estate dynamism and in particular their rental cost. Moreover, Barcelona is one of the world benchmarks in terms of investment for successful real estate profitability.

Then expand your geographic choices by investing in certain provincial capitals whose property prices are constantly reassessed. Think particularly of Valencia, Alicante, Palma de Mallorca, Santa Cruz de Tenerife, etc.

The Spanish islands: areas not to be missed?

The Canary Islands and the Balearic Islands are very promising real estate regions in terms of investment. More and more expatriates are buying their second homes there. Tourists, on the other hand, constitute a constant clientele with regard to rental. Investing in these two places is a pledge of a profitable investment and an interesting added value.

Urban centers with added value: places of investment par excellence?

The best investment you can make is in city centers. Otherwise, prioritize neighborhoods with high added value: easy service, availability of various services, accessibility of housing prices, etc. Neighborhoods with this kind of added value indeed record impressive rental requests.

New real estate and rental investment: criteria for geographic choice?

Rental demand, the property tax rate as well as the evolution of the property price are criteria to be taken into account to determine an investment area in Spain. The following examples say something.

Real estate tax rate: which regions to favor?

Purchases of real estate in Spain require you to pay tax on the inheritance. The rate of said tax depends on the region where you want to invest. Thus, the lowest rate can be observed in the Basque Country. The highest rate is recorded in Galicia and in the Valencian community - for example.

If you want to know more about the Spanish tax system, read the article on "Taxes in Spain: mini guide for a successful real estate investment".

New real estate: examples of areas with strong price movements

When new real estate experiences a rise in selling prices, this shows that demand is strong. This is what Catalonia, Madrid and Palma de Mallorca have proven by registering a price increase exceeding 4%.

Rental investment: examples of areas with high gross profitability

To be viable, a rental investment must be geared towards gross profitability. When rental demand and rental prices are attractive, so are the financial benefits. The regions that guarantee such profitability are: Granada (13.8%), Seville (6.5%)…

Buying property in Spain: which areas to prioritize on the Costa Brava?

Investing in Spain is a smart decision when you want to make big real estate profits in the long term. Investing in the Costa Brava is even more so if you want to generate much more attractive added value. However, you must know how to choose your investment areas on this Catalan coast of the Province of Girona.

If you were to bet on the square meter (m2), know that the average price charged on the Catalan real estate market is 2,480 € / m2 (2018). However, Lloret del Mar - Blanes is the most generous region, offering the m2 at 2,030 €. This price attractiveness is also observable on Roses - Empuriabrava (2,570 € / m2). But the most expensive seaside resorts are Palamos and Aro (€ 2,730 / m2).

As for the preferred areas for the purchase of a house or an apartment with or without mooring, think of Platja d'Aro, Santa Margarita, Rosas, Llançà or El Mas Fumats. These seaside resorts offer you incredible real estate opportunities. The article: "Buying real estate: what possible investments on the Costa Brava with 150,000 €? Will tell you a little more.

Now, do you still have questions about the areas to focus on for your future investments in the Spanish property market? Better still, do you have questions requiring answers from a specialist in the Costa Brava region? The dedicated team of our real estate agency is ready to respond promptly to all your concerns. Express yourself!