Spain is a popular destination for real estate investors from outside the country, constituting a significant 20% of the total investors, and this is attributed to its natural beauty and the diverse real estate options it offers in various regions. The average financial return on real estate investment in Spain ranges from 6% to 10%, placing it among the countries with the highest returns compared to major European nations. In this article, you will discover the best regions that have a promising future for real estate investment opportunities.
Valencia has claimed the top spot on the list of preferred investment destinations in Spain, because of its coastal location and popularity among tourists, It boasts the largest number of Blue Flag beaches in Spain, symbolizing safety, cleanliness, and environmental awareness standards. Valencia also stands out for its rich cultural heritage, making it a coastal region that offers what foreign investors are looking for in holiday destinations.
Furthermore, the city has witnessed a 16.7% increase in real estate sales on an annual basis, with a total of 29,490 property transactions of various types of investments, 28.9% of which were carried out by foreign investors. This means that one out of every three sales was made to an investor holding foreign citizenship.
This can be attributed to reasonable property prices, a favorable climate in the country, proximity to services and entertainment, advanced infrastructure, and most importantly, a job market that provides numerous opportunities for investors. The average cost per square meter for residential properties is 1,245 euros, with a return on investment reaching 5.9%.
Andalusia is considered one of the best places to buy real estate in Spain, located on the southern coast of Spain, it has enjoyed significant fame as one of Spain’s top tourist destinations since the early 1950s and now ranks second in the list of the most popular destinations.
One of the major attractions of Andalusia is its sunny climate year-round, coupled with numerous tourist attractions. Last year, Andalusia welcomed over 12 million tourists from various countries, contributing to an increase in real estate sales and rentals, totaling 18,363 transactions. Of these, 18% were made by investors of different nationalities, and Andalusia experienced a high return on investment exceeding 6%.
Among the most famous cities in Andalusia for real estate investment is the “Costa del Sol,” renowned for being an ideal holiday destination due to its long beaches, many of which have been awarded Blue Flags. For those seeking an urban lifestyle, cities like “Seville” and “Malaga” also witness significant demand due to their level of services, markets, art centers, and cultural offerings.
Catalonia is located in the northeastern part of Spain and is a renowned destination for vacations, relocation, and investment, It is one of the primary tourist destinations and a hub for many vibrant and economically advanced institutions in Spain. Catalonia also attracts many citizens looking to settle and live there due to its tourist appeal, advanced infrastructure, excellent transportation links, prestigious universities, and high-quality healthcare institutions.
One of the most popular choices for real estate investment in Catalonia is the city of “Costa Brava”, This region enjoys special popularity among those looking to buy properties in Spain, offering stunning natural beauty, a favorable climate, and the famous sandy beaches of Costa Brava.
Additionally, attractive investment opportunities can be found in Barcelona, where the return on investment has exceeded 8%, and there is a growing demand for properties in the southern part of Catalonia, with the region witnessing over 15,775 property transactions, including sales and rentals of various property types, recently. Approximately 15.5% of these transactions were made by foreign investors from outside the country.
Madrid is considered one of the popular destinations for both local and international real estate investors, and this is not only because it is one of Europe’s most developed urban centers but also due to its high economic standing and the quality of life it offers to its residents. This makes Madrid attractive not only for business ventures but also for individuals seeking to generate returns on investment while enjoying the city’s culture and engaging in various sports activities, it is home to two of the world’s biggest football clubs: Atletico Madrid and Real Madrid.
According to studies conducted in 2021 on Madrid’s real estate market, it boasts the largest residential market in Spain to date and ranks seventh in Europe with a financial return of up to 3.9%, and this positions it as one of the best investment opportunities in Spain.
Alicante is located in the southeast of Spain and is known for its beautiful beaches and attractive climate year-round, Its coastline stretches for over 200 miles, making it one of the best places in Spain to buy real estate. If you want to be surrounded by a vibrant community, 43% of home sales in Alicante occur every year, and 15% of the region’s population consists of international investors.
Alicante, which translates to the “City of Lights,” is a suitable choice for real estate investment due to its numerous advantages, and these include a luxurious lifestyle, rich cultural heritage, world-class entertainment facilities, many golf courses, and water sports centers. The area also benefits from excellent transportation connections with the United Kingdom, making movement and travel easy. Property prices in Alicante average 1,367 euros per square meter, and it offers some of the best rental yields in Europe at 4.6%.
In Reach Real Estate, we have sufficient experience and knowledge in the field of real estate Investment with our branches spread in more than 13 countries around the world. If you are interested in obtaining a golden residency through real estate investment, get your free consultation and reach out to us through the link here.