The purchase of homes by foreigners have not stopped growing in Spain. Only in the second quarter of 2022 did they increase by 9.7%. And in the first quarter of 2023, registered home purchases by citizens of other countries accounted for 14.5% of total operations. These figures highlight that investing in real estate in Spain is attractive and profitable.
Reasons to invest in real estate in Spain
Real estate investment has always been considered a safe-haven asset, and that's why home buying and selling operations by foreigners have skyrocketed in recent times. But it's not the only explanation.
Spain is a country with good levels of return on real estate investment. Gross rental profitability stood at around 3.5% on average in 2022. However, this figure is much higher in areas such as the Valencian Community, Murcia or Catalonia.
Another factor would be that housing prices have moderated the increases, and we expect this will continue for a while. For all these motives, this is an unbeatable time to invest in real estate in Spain.
Attractive not only for investors
Although profitability is a fundamental point for investing in real estate in Spain, there are other aspects that we should consider:
- Spain offers good conditions to balance work and personal life. Large cities, especially on the Mediterranean coast and the islands, allow you to carry out your professional activity remotely and enjoy the sun, a good atmosphere and a wide range of leisure activities throughout the year.
- There are advantages not only for digital nomads but also for older people who wish to settle in the country temporarily or permanently. Also, to obtain the Golden Visa, in the case of non-EU citizens.
- Housing has more affordable prices than in other nearby countries, which is another significant point for investing in a second home.
- There is a broad and diverse real estate offer. The Spanish real estate market is very active, and it is not difficult to find magnificent opportunities to invest in properties of all kinds, from super-luxury homes in private urbanizations to apartments on the beach.
What to take into account when investing in real estate in Spain
The offer is immense; however, not all properties have the same value or offer the same guarantees of profitability. Therefore, we should assess some aspects beforehand:
- Location and home type: particularly if you're to rent the property afterwards. Better to choose less stressed areas and homes with extras such as common areas or parking spaces.
- Profitability: more profitable areas are usually also more expensive. The idea is to find the balance. The most lucrative are holiday rental homes.
- Infrastructures and services: essential if you are looking for housing as your habitual residence.
- State of the home: one way to make the investment worthwhile is to opt for homes that need reforms. With a small investment, you can achieve a significant increase in value.
If you want to invest in real estate in Spain, it is the best time to do it. At Spainhouses.net, you will find a great real estate offer, with properties for sale of all kinds, including the business opportunity or the second home you dreamt of. Start searching now.