{"id":12852,"date":"2025-01-29T12:16:08","date_gmt":"2025-01-29T11:16:08","guid":{"rendered":"https:\/\/delaguialuzon.com\/?p=12852"},"modified":"2026-01-04T11:39:30","modified_gmt":"2026-01-04T10:39:30","slug":"investing-in-spain","status":"publish","type":"post","link":"https:\/\/delaguialuzon.com\/en\/blog\/investing-in-spain\/","title":{"rendered":"Property investing in Spain"},"content":{"rendered":"\t\t
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Spain continues to be an attractive destination for real estate investors<\/strong>, retirees<\/strong>, and expatriates<\/a> looking for a stable and rewarding property market.<\/p>

Let’s explore the latest trends in the Spanish property market and why now is a better time than ever for investing in Spain<\/strong>.<\/p>

Current trends in investing in Spain real estate<\/h2>

The Spanish real estate market<\/strong> is projected to experience moderate growth in the upcoming years.<\/p>

Housing prices are expected to rise by approximately 5%<\/strong> nationally, with some estimates ranging between 5% and 8%.<\/p>

Urban areas such as Madrid, Barcelona, Alicante, and Valencia<\/a> will likely see higher price increases due to strong demand<\/strong>, limited supply<\/strong>, and continued interest from international buyers<\/strong>.<\/p>

The Costa Blanca and Orihuela Costa, in particular, stand out as preferred destinations for international buyers, thanks to excellent flight connections and modest travel times.<\/p>

Additionally, Spain’s rental market<\/strong> remains attractive, with average gross rental yields standing at 6.17%<\/a> as of Q1 2024.<\/p>

In major cities like Madrid<\/strong> and Barcelona<\/strong>, rental yields for flats range from around 4% to 6%, depending on the property size and location.<\/p>

Is it worth investing in property in Spain?<\/h2>

The answer largely depends on your investment goals.<\/p>

CBRE<\/a> forecasts that real estate investment in Spain will grow by 15% in 2025<\/strong>, reaching a total volume of 16 billion euros<\/strong>.<\/p>

This increase is driven by the return of international capital, lower financing costs, and the attractiveness of the euro against the dollar.<\/p>

Strong demand from both domestic and international buyers continues, particularly in areas with high rental potential and sought-after tourist areas.<\/p>

Can foreigners buy property in Spain?<\/h2>

As of January 2025, the Spanish government has proposed significant changes to foreign property investment<\/strong>, particularly targeting non-EU, non-resident buyers.<\/p>

Prime Minister Pedro S\u00e1nchez<\/strong> announced plans to impose a 100% tax on real estate purchases<\/strong> by this group, aiming to address Spain’s housing crisis.<\/p>

This move affects a segment that comprises less than 5% of the Spanish housing market.<\/p>

New restrictions on foreign property investment<\/h3>

The proposed tax is part of Spain’s strategy to protect the housing market from foreign speculation.<\/p>

This unprecedented measure is designed to prioritise homes for residents and combat the country’s housing crisis.<\/p>

Key legal steps for foreign buyers<\/h3>

Despite these changes, foreigners can still purchase property in Spain<\/a>.<\/p>

Here’s what you need to know:<\/p>