The amount of investment in residential real estate in Spain in 2022 amounted to little more than €15 billion, which is close to the historical maximum of €16 billion marked in 2019. According to experts, Spanish housing will remain in demand in 2024 both among locals and among foreign buyers.
Content:
- Who buys Spanish housing?
- What are the most popular locations in Spain?
- What residential property in Spain is in demand in 2024 and why?
- Is it easy to buy Spanish housing?
- What are the privileges of residential real estate in Spain for a foreigner?
- What residential properties are being sold in Spain right now?
Who buys Spanish housing?
Most often, apartments and villas in Spain are bought by Britons (9.3%), Germans (8%), and the French (6.2%).
Most investors buy housing on the Costa Blanca — in Benidorm and Torrevieja, the Canary Islands and Barcelona.
British citizens prefer housing on the coast of the Costa Brava and the Costa del Sol, for example, in Malaga and Marbella. Irish, Dutch, Danes and Norwegians began to buy Spanish housing in 2022 more often than in previous years.
Other foreigners prefer properties in Malaga and Alicante.
What are the most popular locations in Spain?
Most often, foreign nationals acquire various villas and apartments in Spain in the province of Alicante – 19.4% of the total number of home purchases by foreign investors. Alicante is followed by:
- Malaga – 12.6%
- Barcelona – 8%
- Madrid – 7.1%
- Balearic Islands – 6.8%
- Valencia – 5.9%
- Murcia – 5.4%
These places are popular not only with citizens of other countries but also with Spaniards, who often acquire housing there as a second home to live in after retirement.
What residential property in Spain is in demand in 2024 and why?
Spain remains one of the most sought-after locations in 2024 among foreign real estate investors. According to experts, the rental-housing sector will be more investment attractive this year, as it is the most profitable. In addition to rented residential properties, elite housing will be more popular. Detached houses that buyers have been buying since 2019, when the coronavirus pandemic broke out and people lived separately, will continue to be in high demand.
Is it easy to buy Spanish housing?
The key advantage of buying a home in Spain is a simple procedure and no restrictions on transactions. Any buyer, including a foreigner, can take out a mortgage from a local bank. Both an individual and a legal entity can purchase residential real estate in the country.
What are the privileges of residential real estate in Spain for a foreigner?
Experts recommend not putting off the purchase of apartments in off-plan development projects in Spain or finished housing for the following reasons:
- Foreign owners of Spanish real estate are not limited in their rights and can not only give and bequeath a residential property, but also rent and resell housing as Spaniards.
- Apartments and houses in Spain grow in price by 1.3% approximately every 4 months, so there is no doubt that investments will be liquid. Buying a move-in ready property, for example, for €200,000 and reselling it a year later, you can earn over €10,000. If you buy off-plan housing at a discounted price, your benefit will be higher.
- You can rent out your house profitably in Spain and receive a regular income of about 5–7% of the property value per year. For example, a 132 m2 four-bedroom apartment in the small town of Coma Ruga on the Costa Dorada can be purchased for €150,000. You can rent out such housing for €700–800 per month, which will allow you to pay it back for 12.5 years.
- According to many people who own Spanish residential properties, the Kingdom is one of the best places on Earth to live. You can run a business or live in the country enjoying the wonderful climate and warm sea.
- When buying an apartment in development projects in Spain or ready-to-move residential properties for over €500,000, you can get a "Golden visa" — a one-year residence permit with the right to extend it after this period for 2 years or more. A foreign citizen has the right to reside in the Kingdom on this visa for an unlimited number of days a year, visit the countries of the European Union, work for a local company or open his own business. If you do not want to apply for permanent residence or citizenship, you do not need to permanently reside in the country.
- The investor’s wife/husband and minor children have the right to issue a residence permit and reside in the Kingdom.
- Having issued a residence permit for purchasing a home, you should not sell it during the validity period of the residence permit if you want to keep this status. However, if you have been permanently residing in the country for 5 years, you can apply for a permanent residence permit. You can sell your property after that. The sale will no longer affect the status of its former owner.
What residential properties are being sold in Spain right now?
- A 107 m2 two-bedroom apartment in Torrevieja can be purchased for €150,000.
- A 94 m2 three-bedroom villa in Torrevieja can be bought for €450,000.
- A 47 m2 two-bedroom residence in Poble Sec in Barcelona is for sale for €250,000.
- A 120 m2 five-bedroom flat in Torre Baro in Barcelona can be bought for €270,000.
- A 130 m2 two-bedroom apartment in Marbella in the province of Malaga are sold for €170,000.
- A 89 m2 one-bedroom duplex in Marbella can be bought for €204,000.
- A 62 m2 two-bedroom penthouse in Marbella is for sale for €275,000.
- A 185 m2 four-bedroom townhouse in Marbella can be purchased for €245,000.
- A 174 m2 five-bedroom house in the municipality of Fontrubi in Barcelona can be purchased for €290,000.