The best cities in Spain to buy property

The best cities in Spain to buy property

In pandemic times, the issue of house buying becomes the most urgent. Where to buy a house? What are the best areas to invest in? Which area to focus on? Where will real estate investments pay off for sure? From our article you will find out in which cities in Spain it is best to buy housing and how to assess its profitability.

CONTENT

BUYING PROPERTY IN SPAIN IN 2021

The crisis in the field of health care, social, economic regulation testifies to the high uncertainty with which 2020 ended and 2021 began. In this situation, analysts expect adjustments in residential property prices in Spain, which may decline as the economy strengthens, jobs are created and stability is restored.

There are several aspects to consider when deciding whether to buy a home in Spain in 2021:

  1. Find the right moment. It is necessary to look for opportunities and offers of favorable housing. You can find urgent sale announcements with an additional discount in price.
  2. Interest rates are at a relatively low level and may persist for a certain period of time. Buying a house usually requires funding. According to the Bank of Spain, the average interest rate on new lending transactions for house purchases in November was about 1.8% (latest available data), the lowest ever.
  3. A large number of proposals in the secondary housing market. The increased demand for new housing is significantly reducing the choice of real estate in the areas with the most economic activity. Thus, it is expected that the price correction in new buildings will be lower than in the secondary market.
  4. Adaptation of housing to new needs. Larger apartments, more rooms and terraces are some of the characteristics buyers are striving for. It is necessary to start thinking about buying real estate in Spain now, as the offer will become limited over time.
  5. Forecasts point to a decrease in prices for apartments in new buildings in Spain, but not in all Spanish cities. It is important to analyze the desired characteristics in the purchased house and existing offer in the desired area.

10 BEST SPANISH CITIES FOR REAL ESTATE INVESTMENT WITH SUBSEQUENT RENTAL

It is important to be clear about which cities to invest in.

Rental income in Spain

As of January 2021, and according to the latest available data from the Bank of Spain, gross rental income in the third quarter of 2020 was 3.7%. Total housing income (including rents and price changes) reached 5.6% over the same period.

Main cityIncome
La Coruña 4,5%
Albacete 5,60%
Alicante 6%
Almeria 6,7%
Avila 6,2%
Badajoz 6,1%
Barcelona 4,5%
Bilbao 5%
Burgos 5,5%
Caceres 5,9%
Cadiz 4,9%
Castellon de la Plana 7%
Ciudad Real 5,9%
Cordoba 6,2%
Cuenca 6,5%
San Sebastian 3,7%
Girona 5,3%
Granada 5,5%
Guadalajara 6,2%
Huelva 7,3%
Huesca 6%
Jaén 6,1%
Las Palmas de Gran Canaria 5,8%
Leon 6%
Lleida 8,7%
Logroño 5,3%
Lugo 5,4%
Madrid 4,9%
Malaga 5,6%
Murcia 7,9%
Ourense 5,1%
Oviedo 5,8%
Palencia 5,6%
Palm 4,6%
Pamplona 5%
Pontevedra 4,9%
Salamanca 5,8%
Santa Cruz de Tenerife 6,6%
Santander 5,5%
Segovia 6,1%
Seville 5,9%
Soria 5,8%
Tarragona 5,8%
Teruel 6,5%
Toledo 6,3%
Valencia 5,9%
Valladolid 5,6%
Vitoria 5,2%
Zamora 5,4%
Zaragoza 6,3%

According to the data from the table, the city that generated the most profit at the end of 2020 was Lleida (8.7%). It was followed by Murcia (7.9%), Huelva (7.3%), Castellón de la Plana (7%) and Almeria (6.7%).

Closing the list of the 10 best cities for investment in housing are Santa Cruz de Tenerife (6.6), Cuenca and Teruel (6.5), Toledo and Zaragoza (6.3%).

Cities with the lowest return on real estate investments

Cities for investment in rental housing due to low yields are San Sebastian (3.7%), Barcelona (4.5%), La Coruña (4.5%), Palma (4.6%) and Madrid (4 ,9%).

As you can see, some of them are the capitals with the highest price per square meter in Spain, which makes them difficult to profit from (due to the high cost of real estate).

SPANISH CITIES MOST SUITABLE FOR FOREIGNERS

Spain is the most attractive country among the residents of Russia who buy real estate abroad.

Valencian community attracts Russians for several reasons:

  • favorable housing prices,
  • favorable climate, the ability to live near the sea,
  • labor market offers vacancies for foreigners,
  • developed infrastructure.

Autonomous Community of Catalonia

Catalonia also attracts foreign citizens with the following points:

  • tourist orientation,
  • developed infrastructure,
  • good transport links,
  • profitable rental of real estate,
  • presence of prestigious universities,
  • quality medicine.

Canary Islands

Attractive sides:

  • warm climate all year round,
  • favorable prices for real estate;
  • housing liquidity;
  • favorable rental conditions.

Citizens of retirement age will enjoy living in these Spanish cities, who will appreciate the healthy climate, gastronomic variety, availability of quality food, highly qualified medicine, affordable prices and the absence of a language barrier.

INVESTING IN HOLIDAY HOUSING

The Spanish coast has a lot of attraction that captivates locals and foreigners alike. Sunny Kingdom enjoys an excellent international reputation as a tourist destination for its beaches, gastronomy, infrastructure and services, and leisure facilities.

Buying a house by the sea is an important decision. This is not only a path to realizing your dream of housing, but also a source of income. Which city to buy property on the coast? What are the best areas to invest in a seaside house?

When it comes to investing in tourist property, it is necessary to evaluate the positive and negative aspects before making a decision.

Investing in vacation houses has several different nuances.

DISADVANTAGES TO INVEST IN REAL ESTATE BY THE SEA:

  • Costs: having a second house means economic stability as the cost of maintaining a house doubles: two electricity bills, two water bills, two gas bills, etc. The costs are significant, so you need to have the resources and manage your money wisely. However, there are ways to keep costs down, such as renting or buying a house by multiple owners.
  • Location: before buying a vacation house, you need to decide on its location. In this regard, it is necessary to study the policy of real estate prices, because housing in some places is more expensive than others. Before you start looking for housing, you need to get acquainted with the area where it is located.

BENEFITS TO BUY A HOLIDAY HOUSE ON THE COAST

Investing in beach houses has more advantages than disadvantages:

  • Extra income: renting out a house during the winter months or when you are not going to use it is a good alternative to get extra money to cover maintenance costs.
  • Location: holiday houses are usually located on the coast, close to the beach. Living close to the sea and enjoying the warm climate is a much more attractive prospect in the current COVID-19 situation, as we feel more secure and less at risk of infection.
  • Investment: when purchasing a vacation house, it is important to consider this transaction as a profitable investment, and not as an expense. From the moment you buy real estate, you will stop spending money on hotels and other trifles related to travel.
  • Since the advantages outweigh the disadvantages, buying a house by the sea becomes a smart investment. Now all that remains is to decide which real estate agencies in Spain you are going to contact in order to find the desired property.

THE BEST PLACES TO INVEST IN REAL ESTATE BY THE SEA IN SPAIN

The islands are an unrivaled investment destination. The Canary Islands are a good choice for buying a house on the coast with subsequent rentals and above average incomes. San Cristobal de la Laguna in Tenerife, Puerto del Rosario in Fuerteventura or Saint Lucia de Tirajana in Gran Canaria are just a few municipalities where investment in housing by the sea will prove to be profitable.

Mallorca continues to lead; its residential complex has always been an object of foreign investment with high purchasing power.

There are also places on the peninsula that are attractive in terms of profit: Costa del Sol, Costa Brava, Valencia, Costa Blanca.

WE WILL HELP YOU BUY PROPERTY IN SPAIN

Looking for property in Spain to move or invest? We have everything you need. At Spain-Real.Estate we check every property offer. Here you can find a detailed description of the property, plans, photographs. Check out our exclusive selection of property offers in Spain today!

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