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Spain has been very popular with both national and international investors for quite some time now.
What makes it so attractive to invest in Spain? Why is investing in real estate in Spain so interesting and how can you get a return from it? And if you still want a sunny investment, where in Spain is the best place to invest?
Finally, more about how to start buying a house in Spain as an investment and building a real estate portfolio in Spain.
There are many reasons to buy a house in Spain. Let’s first look at what Spain has to offer in general and what makes many investors choose Spain for their foreign investment:
In addition, investing in stones has always proved to be the most stable investment over the years. Where the money in the bank no longer yields anything, but where you can still borrow money at relatively low interest rates, investing in real estate in a popular country such as Spain is a good alternative.
If you want your property in Spain to be a good investment, it is good to think in advance about how you want to make this investment. By investing in a property in Spain you can get a return from:
Combinations are of course possible here. The location of the property will also play a role in the possibilities and the return you can achieve. We briefly list the various options.
As mentioned, Spain remains incredibly popular as a holiday destination, because of the climate, the food, the hospitality and the many Costas and islands. The flow of tourists continues to rise steadily, but the range of hotel accommodations is limited, especially in the summer months. Furthermore, after COVID, many people prefer to choose their own private location. So a logical option is to buy a property in Spain and then rent it out to tourists.
It is important that you can obtain a tourist rental license. In some places this is no longer possible, but luckily you can still rent out your house in many places on the Spanish Costas. Roughly speaking, we always say that what you can ask per week in the summer months in rental price, is per month in winter. The advantage of the short-term rental is of course that you can always continue to use your property in Spain to spend your holiday.
If you are not going to use the property in Spain yourself or hardly at all, renting out for the medium and long term can be the way to get a return from your Spanish house. You don’t have to worry about it for a longer period of time, but you do receive income. This can also be the alternative for those places or homes where you cannot get a tourist licence.
For long-term rental you can focus on the local Spaniard, but Spain is certainly also interesting for longer-term rental for the international market. Because of the climate, there are many people who want to spend the winter in Spain for example. Also those who want to ‘test living’ for a while before making the choice to settle here permanently. In addition, of course, you have people who follow a language course, the expats, students and now increasingly the ‘digital nomads’.
Those who are not afraid of a ‘fixer-upper’ can achieve a lot of return in Spain from a renovation project. By buying a property in Spain cheaply and renovating it properly, you can quickly add value. Many people don’t feel like building or renovating projects, and certainly not remotely. So if you are a persona that does like this and afterwards sell the house again, you can make a nice return. You can of course also rent out the property, which will certainly increase your rental yield, especially with a few cosmetic procedures.
Always let yourself be advised and guided, because you can’t just simply do a major renovation. You will need permits for that. Do you need help with your renovation in Spain or do you want to build a property in Spain? We can help you find the right partners within our reliable network to guide you through this process.
Just like in the Netherlands and Belgium, the real estate market in Spain is also on the rise. Not with those big jumps like in Northern Europe, but with some solid progression depending on the region. In Spain, too, you can see in the major cities that house prices have risen in recent years. Prices are also steadily rising in certain regions and sometimes very specific places on the Costas. So sometimes you already have a good investment by buying your house in Spain now, enjoying it for (a few) years yourself or renting it out and then selling it again at a profit. It can be that simple sometimes.
We closely monitor the housing market in Spain. So keep an eye on our news page, because every quarter the analysis of the real estate market in Spain is published, which we make a summary of.
In general, you can make a good investment in almost all of Spain. Certainly if you also want to use it yourself, we always advise you to stay close to your own preferences and wishes. There will undoubtedly be more people who like the same and would like to rent or buy this property later.
But just like in the Netherlands and Belgium, there are of course areas that excel when it comes to a good investment in Spain. Think, for example, of the larger cities, such as Valencia and Malaga, or the Costa Blanca, because of the good climate throughout the year. Or on the Costa del Sol with its many golf courses. There is almost something to be said for every region.
The cities always have a great attraction from an investment point of view. That cities such as Amsterdam, The Hague, Antwerp and Ghent remain interesting, the same applies to Spain. Madrid and Barcelona have traditionally been popular, making this comparable to the market of northern European cities.
The slightly smaller cities are especially popular right now, where you still have favorable m2 prices. A city like Valencia is booming and has all the ingredients for a good investment: a vibrant city, good climate, beautiful beaches, close to airport and many positive developments. Our colleagues at Dream Properties Valencia go into more detail on this on the ‘Investing in Valencia’ page.
The Costa Blanca has the ideal climate for many. Because the winters are usually mild and sunny, it is the ideal place for people who want to spend the winter in Spain. This also makes it a good place to invest and buy a house in the Costa Blanca. Whether this is for tourist rental, medium or long term or purely for yourself, depends on your plans. For example, if you want to stay there partly yourself, you will get more flexibility from tourist rental. It is important that you get a rental permit for your Spanish home.
Then there is the question of which part of the Costa Blanca you want to invest in. That mainly depends on your budget.
In general, Costa Blanca south has a lower entry fee for buying a house, which makes this area more accessible for those with a smaller budget. You can think of places like Santa Pola, Guardamar and Torrevieja.
Costa Blanca north has the beautiful, popular cities, such as Javea, Moraira and Denia. Because you generally have more house here and larger plots of land, the purchase prices are also a bit higher, but that also applies to the rental prices.
Another important region for investment and rental is the Costa del Sol, with the large city and the airport of Malaga. You will find the chic seaside resorts of Marbella, Mijas and Estepona here. You also have the Golden Triangle of Andalusia with the beautiful cities such as Sevilla, Cordoba and Granada and the many beautiful white villages. The Sierra Nevada also offers the opportunity to ski in the morning and to relax on the beach in the afternoon.
In combination with the many beautiful golf courses, you have a mix here that is perfect for investment and buying an apartment or villa. You will find many interesting new construction projects, but also the typical Andalusian villas.
The Costa Brava cannot be missed in the list of Costas to invest in. Traditionally, this costa has been interesting for many Dutch and Belgians who want to go on holiday by car.
In addition to Barcelona, this northern costa also has a beautiful coastline with many idyllic bays and places such as Begur, Palafrugell and Calonge. The region also has well-known seaside resorts with lots of entertainment such as Lloret del Mar and Platja d’Aro.
By investing in a property in the Costa Brava, you can get a good return on tourist rental.
Ibiza is especially popular with the Dutch. The Ibiza vibe continues to attract many people. Even though the prices are high, the rental prices are correspondingly high, so a nice return can still be made here. Especially if you can purchase a good option. At the moment there are also a number of interesting new construction projects that are interesting as an investment.
The same applies to Mallorca, where previously mainly Germans went to enjoy the holidays and has now also really been discovered by the Dutch.
If you don’t quite manage your budget in the Balearic Islands, let us know because we have good alternatives.
Of all the options mentioned above, the Canary Islands ultimately offer the most even climate. Here it is all year round around 20-25 degrees with a nice breeze.
Also this archipelago, and especially Tenerife (especially for Belgians) and Gran Canaria are popular here. A great place to make an investment and to spend the winter yourself. You can also go for tourist rental, but only in designated areas.
Planning to invest in Spain? There is a lot possible if you want to invest in a property in Spain. It is important to think in advance what you want, for what purpose and where you can best express it.
The team of Dream Properties International is happy to help you in this process. We advise you about the possibilities, the regions and the do’s and don’ts of certain regions while looking for the perfect investment.
You also want to invest? Call us directly on 070 2500 150 or fill in the contact form and we will contact you for a free consultation.