Spain offers a wealth of real estate opportunities that suit a variety of investment strategies, from high-end luxury villas to budget-friendly coastal apartments. This guide begins with some of the top investment strategies for Spain, and then we take a detailed look at the most promising areas to invest. And for each area, we offer specific tips about how to maximize your returns.
Key tips for investing in the Spanish real estate sector
Master your market. Focus on researching one location of Spain really well, rather than knowing several locations okay. This will allow you to gain a deep understanding of the area’s unique dynamics, the best neighbourhoods, pricing trends, planned developments, and seasonal occupancy rates.
Prioritize location. Proximity to the coast, infrastructure, and local amenities is vital. Properties near beaches or within popular tourist areas often see higher occupancy rates and rental returns. Properties further from the coast are more effected by market fluctuations, have lower occupancy rates, and usually take longer to sell.
Identify emerging hotspots. Choose areas with growing demand and infrastructure, such as those near airports, commercial centres, sports clubs, new golf resorts, etc. Areas with growing amenities and services can signal a rising market and strong future appreciation. (See our list below.) Do your research to identify what residential and commercial developments are planned for the area.
Amenities. Premium amenities (smart home technology, private pools, sea views, outdoor entertainment spaces, fast internet, concierge services, saunas, wine cellars) attract long-term bookings and repeat visitors, driving up both occupancy and rental income.
Rental regulations. Make sure to secure the right permits for rentals, especially as some regions restrict short-term leasing.
Amenities and services that drive occupancy, rental returns, and long term value
Look for real estate that is near these types of amenities and services: Beach clubs, gourmet dining options, exclusive events, marinas and ports, golf courses, luxury spas and wellness centres, designer shopping and boutique stores, water sports and adventure facilities, equestrian facilities, international schools, and health facilities.
Top Investment Strategies for Spain
Investing in Spanish real estate is not a one-size-fits-all approach; the market offers options for everyone from luxury property investors to first-time buyers looking for rental income. Here are the best strategies to succeed in Spain’s dynamic real estate market.
Luxury real estate investment. Spain’s high-end real estate market is thriving, especially in areas like Marbella, Ibiza, and Costa Blanca North. Investing in luxury properties in desirable locations can provide a high return on investment, driven by a steady stream of international buyers and tourists.
Tips. Look for properties near marinas or upscale communities. Consider amenities and features that appeal to affluent buyers, such as concierge services, home spas and saunas, sea views, and private pools.
Vacation rental properties. Spain’s coastal regions, like Costa del Sol, Costa Blanca, and the Balearic Islands, are highly sought after for holiday rentals, offering high yields in peak seasons.
Tips. Invest in well-furnished properties near the sea, restaurants, and transport hubs. Look for areas with a long holiday rental season. Areas like Altea, Calpe, Moraira, and Javea attract professional athletes for their winter training, and also cycling and golf enthusiasts who prefer playing in the cooler autumn and spring months.
Long-term rentals. In regions like Valencia, Madrid, and Barcelona, a strong demand for long-term rentals makes this a stable investment. Target professionals, remote workers, and expat renters for steady occupancy.
Tips. Consider urban coastal locations like Denia, Benidorm, Malaga Province and other areas with strong infrastructure and amenities. Neighbourhoods near public transit and business districts often yield higher occupancy rates.
Buy-to-renovate and flip. With a thriving real estate market, many investors are purchasing older properties, renovating them, and selling at a profit. This approach is particularly popular in Valencia, Seville, and parts of Alicante, especially the Costa Blanca North.
Note: In Spain, it’s usually a lot simpler and quicker acquiring a license to renovate, than getting plans for a new build approved.
Tips. Target undervalued properties in up-and-coming neighbourhoods. Look for properties with sea views and private pools. Ensure renovation quality will appeal to high-end buyers if you intend to flip in a luxury market.
Mixed-use investments (Live-and-let properties). In Spain’s vibrant cities, mixed-use properties allow investors to combine personal use with rental income, ideal for those who want a holiday home with rental returns.
Tips. Opt for dual-function properties near tourist attractions or business hubs, which can attract both short-term holiday renters and long-term tenants. In Spain, the majority of property management companies are used to property owners spending some weeks of the year in their properties.
Best Places to Invest in Real Estate in Spain
Let’s look at our top locations across Spain for maximizing real estate investment returns, each with tailored advice on what to consider and why each area stands out.
1. Costa del Sol
Why invest in the Costa del Sol? Clear skies and sunshine for most of the year, stunning beaches, and a rich blend of cultures. The Costa del Sol attracts buyers and renters from around the globe and boasts a thriving market for both luxury real estate and affordable holiday rentals.
Top locations. Marbella. Known for its luxury villas, exclusive communities, and golf resorts, Marbella attracts high-net-worth individuals and celebrities.
Estepona, Benalmadena, and Manilva. These areas are rising in popularity, offering lower entry prices with high rental potential.
Investment tips. Choose properties near amenities. Proximity to beaches, golf courses, and entertainment ensures high rental demand.
Flexibility in rentals. Invest in properties that appeal to both short-term and long-term renters to maximize income year-round.
Luxury appeal. Consider unique amenities and high-end finishes to cater to affluent clientele.
2. Costa Blanca North (Alicante Province)
Why invest in Costa Blanca North? The area combines beautiful Mediterranean landscapes, stunning rugged coastline, first class amenities, with a relaxed lifestyle, making it ideal for luxury investments.
Towns like Denia, Jávea, Altea, and Moraira attract wealthy European buyers from Belgium, the Netherlands, France, Switzerland, and are seeing rising interest from North America.
Top locations. Denia and Jávea are known for upscale marinas, Michelin-star restaurants, and boutique shopping, these towns have become prime luxury destinations.
Moraira, Altea, and Calpe are coastal towns with stunning sea-view properties. Yachting and boating enthusiasts are flocking here due to limited berthing spaces in Mallorca and Ibiza.
Investment tips. Cater to boating enthusiasts. Costa Blanca North’s high-end marinas attract yachting enthusiasts looking for nearby luxury real estate.
Focus on luxury. Upscale villas with sea views, pools, and sustainable features attract affluent buyers looking for exclusivity.
Growing demand. With Costa Blanca property values increasing by double digits each year, capital appreciation is strong in this region. There are also a growing number of people looking for winter lets. This is very interesting for investors who are focussed on vacation rental properties but concerned about low occupancy during the winter months.
3. Costa Blanca South
The Costa Blanca South, between Alicante City and the border of Murcia, is one of Spain’s most affordable coastal areas, and therefore accessible to budget-conscious investors. Its sunny microclimate, wellness tourism due to nearby salt lakes, and growing expat community fuel demand for both short and long-term rentals.
Top locations.
Torrevieja Port Area. Affordable properties with strong rental potential attract both holidaymakers and year-round residents.
Santa Pola is a port town just north of Torrevieja with stunning beaches, beautiful viewing points, and lots of affordable properties near the coast.
Golf developments. Look for new or planned golf developments. They have a history of excellent short and long term appreciation.
Investment tips.
Health, wellness, and sports. The salt lakes are a major draw for wellness tourism, a unique niche market in Spain. The golf courses are also a big year-round drawcard for golf enthusiasts.
High occupancy. Long-term rentals are in high demand due to the large expat population. Demand outstrips supply, especially during the spring and summer holiday months.
Renovation opportunities. Renovate older apartments in urban centres to achieve high yield returns.
4. Valencia
Why invest in Valencia? Spain’s third-largest city, Valencia, offers affordability when compared with Madrid and Barcelona.
Along with Alicante, these are two coastal cities with average property prices well below the Mediterranean norm. Due to a steady flow of international students, expats, and tourists, the rental market is strong, while property values have significant room for growth.
Top locations.
El Cabanyal is a trendy, seaside neighbourhood popular for its historic charm and beach proximity.
Olivereta and Las Moreras are affordable suburbs with solid rental yields, and both are close to the Turia Gardens and the City of Arts and Sciences.
Investment tips.
Neighbourhoods undergoing development, like Cabanyal, are likely to see property values appreciate.
Valencia’s strong expat and international community creates steady demand for both holiday and long term rentals.
With lower upfront costs, Valencia yields higher returns than Madrid or Barcelona.
5. Alicante
Why invest in Alicante? Known as the heart of Costa Blanca, Alicante combines a beach lifestyle with a thriving city life, making it a well-rounded investment option.
Top locations.
Historic centre and beach areas. Properties near Alicante’s beaches, shopping centres, and Santa Bárbara Castle are highly sought after.
Investment tips.
Alicante’s blend of history, beaches, and dining attracts both tourists and locals, supporting steady rental demand. Most of the accommodation demand tends to focussed on the historical area near the port.
Affordable entry. Many prices are below €2,000 per square meter, making it an accessible investment.
Seasonal flexibility. Properties can perform well as both short-term holiday rentals and long-term leases.
6. Murcia Region
Murcia offers low-cost property options in a Mediterranean setting, ideal for those seeking affordable coastal investments.
Top locations.
Águilas, Mazarrón, and San Pedro del Pinatar. Each offers beautiful beaches and a laid-back lifestyle, with property prices below the national average.
San Pedro del Pinatar offers affordable properties with sea views and access to Murcia’s airport.
Investment tips.
Absolutely crucial: To ensure the best long term yield, it’s absolutely crucial to invest in areas that have a good infrastructure, and plenty of amenities and professional services.
Appeal to retirees. Murcia’s affordable living and calm coastal towns attract retirees from Northern Europe.
Emerging tourism market. As an affordable alternative to other Spanish coasts, Murcia is gaining traction.
Moderate growth potential. The market is still relatively untapped, offering potential for long-term appreciation. The areas with the best potential are those closest to the border of Alicante province and on the Mar Menor. The towns and villages here get additional interest from buyers and renters interested in the Southern Costa Blanca and in particular Orihuela Costa.
7. Almeria Province
Why invest in Almeria? Almería provides some of Spain’s lowest property prices with year-round sunshine and a high quality of life. In the last decade you have seen the inclusion of more high-end services and amenities like wellness and spa services, gourmet dining, golf courses, boutique shopping, and boating activities.
Top locations.
Mojácar and Garrucha. Known for their affordable seaside homes and easy-going lifestyle, these towns are appealing for vacation rentals.
Both areas have experienced steady growth in property values, spurred by increased interest from international buyers.
Property prices remain relatively affordable, especially compared to other Mediterranean hotspots like Costa del Sol or the Balearic Islands.
Investment tips.
Strong seasonal rental market. Almería is particularly popular for summer rentals and the market is less saturated than popular regions like Costa del Sol, offering steady rental income with lower costs.
Thanks to the mild winter climate, properties in Mojácar, Vera Playa, and Garrucha are seeing higher occupancy rates during the off-peak season. In particular, there is a strong interest with expats from the UK, Germany, and Scandinavia.
Properties close to beaches, golf courses, marinas, and dining areas are more likely to attract holiday renters and provide a strong return.
Unlike highly saturated areas such as Marbella or Ibiza, Mojácar and Garrucha are still emerging markets with room for growth.
Spain’s diverse real estate market offers top investment opportunities that suit every budget and strategy. You can research high-yield luxury properties in Costa Blanca North or affordable vacation rentals in Murcia and Almería. It’s important to take your time understanding your preferred location’s unique market, and also consult professional guidance. By doing this you can capitalize on Spain’s robust real estate landscape, ensuring long-term growth and returns in this dynamic and appealing destination.
