Investing in Spain’s real estate market

profitable real estate investments in Spain

Why invest in Spain

Real estate investment is one of the main attractions that attracts most foreign investment in Spain.

The main reasons for investing in real estate in Spain are the good market prices in general, the national legal security, the lower tax burden and, in addition, for those looking for a second home in our country, the quality of life.

From a financial point of view, it is worth noting that investments in housing over the last 3 years have achieved a profitability of over 10% and rents of over 4%. To this must be added the abundant supply provided by the banking system, which was unable to take on more than 700,000 homes during the last crisis. As a fact, in the second quarter of 2019, foreign purchases accounted for 18.7% of the total number of transactions involving the sale and purchase of free housing in Spain.

In addition, foreign investors see the Spanish residential segment as very attractive due to the lifestyle associated with good weather, gastronomy and an unbeatable leisure offer. With regard to the prime residential market, areas such as Madrid or the Costa del Sol are a real attraction for large Latin American investors, attracted by the price per square metre and security.

In 2019, Madrid has become the fourth city in the world with the highest foreign investment in the real estate sector, behind only London, New York and Paris. After Madrid, the next area of Spain that receives the most international investment is the Mediterranean coast, largely centred on the Costa del Sol.

From a business point of view, Spain is the leading recipient of investment from Latin American companies outside the region, being the gateway to the European market.