Purchasing property in Spain has long been a popular investment choice for many reasons. From its cultural richness and beautiful landscapes to a thriving property market and growing sectors like wellness tourism, Spain offers numerous opportunities for investors.
In this analysis, we delve into why Spain is a good country to purchase property for investment, current market conditions, types of investments, the rise of wellness tourism, and the administrative process of buying property in Spain.
In this first part, we will look at the non-financial elements that make Spain the place to make your next property purchase as an investment.
Spain boasts a unique blend of cultural richness, a favourable climate, and a high quality of life, making it an attractive destination for property investment. The country is known for its vibrant lifestyle, rich history, and diverse landscapes, from sunny beaches to mountainous terrains. Additionally, Spain’s robust infrastructure and excellent healthcare system further enhance its appeal as a top investment destination. In our recently published article we looked at why so many people were moving to the Costa del Sol in more detail.
The Spanish property market is in a healthy state. According to the Instituto Nacional de Estadística (INE), housing prices rose by 2.6% in the first quarter of 2024 compared to the previous quarter. Regional price variations are notable, with the following averages per square meter:
Region of Spain | Price Per Square Meter in EUR |
Balearic Islands | €3,353 |
Madrid | €2,967 |
Catalonia | €2,317 |
Basque Country | €2,706 |
Andalusia | €1,768 |
Valencia Region | €1,487 |
Economic forecasts predict continued growth in 2025, albeit at a slightly slower pace compared to 2024, according to the latest World Economic Outlook update from the IMF. Read more here.
Our professional analysis indicates that the current market conditions and economic forecasts make now an excellent time to invest in Spanish property. The combination of rising property prices, regional price variations, and a positive economic outlook supports the potential for both capital appreciation and rental income.
At PCC Property, we’ve discovered four main reasons why our clients buy properties as an investment in Spain. Read on to see if they match your intentions:
Purchasing a property as a long-term asset in Spain allows investors to enjoy personal use while benefiting from potential appreciation in value over time. This type of investment provides a tangible asset that can be passed down to future generations, ensuring both enjoyment and financial security. Spain’s appealing lifestyle, pleasant climate, and rich cultural heritage make it an attractive location for a second home or retirement property. Additionally, regions like Costa del Sol, Costa Blanca, and the Balearic Islands are particularly popular for their scenic beauty and excellent amenities, making them ideal for long-term investment and personal enjoyment.
Investors opting for this strategy can enjoy several benefits:
The long-term rental market in Spain is thriving, driven by a steady demand for rental properties from both locals and expatriates. Urban areas like Madrid and Barcelona offer higher rental returns due to increased demand from professionals, students, and international workers. These cities are hubs of economic activity, education, and culture, attracting a diverse tenant base.
Key considerations for long-term rental investments include:
Investing in short-term rental properties in popular tourist regions like Costa del Sol, Madrid, and Costa Brava can be highly profitable. These areas attract millions of tourists annually, creating a robust market for vacation rentals. Short-term rentals, such as holiday homes and Airbnb listings, can generate higher rental income compared to long-term leases, especially during peak tourist seasons.
Factors to consider for short-term rental investments include:
Investing in properties for business purposes, such as event venues, co-working spaces, or wellness retreats, is another viable option in Spain. This sector is experiencing significant growth, driven by a growing interest in unique travel experiences, wellness tourism, and flexible working arrangements.
Commercial property investments can offer diverse opportunities:
Investing in commercial properties involves considering:
Overall, Spain offers a diverse range of property investment opportunities, each with its own set of benefits and considerations. By carefully analysing market trends, regional variations, and regulatory environments, investors can make informed decisions to achieve their investment goals.
Wellness tourism involves travel aimed at promoting health and well-being through physical, psychological, or spiritual activities. This sector is rapidly expanding as more travelers seek experiences that enhance their overall well-being.
Activities typically associated with wellness tourism include yoga retreats, spa treatments, meditation sessions, fitness boot camps, and holistic healing therapies. The goal is to provide a holistic approach to health, addressing the body, mind, and spirit. This growing trend reflects a broader shift in consumer behavior towards prioritizing health and wellness, and it opens up significant opportunities for investors in the real estate market.
The wellness tourism industry is valued at $1.03 trillion in 2024, with a growth rate of 12.4%. This trend is driven by increasing consumer interest over the past five years, positioning wellness tourism as a lucrative investment opportunity. Source
The growth is fueled by several factors:
Spain has the potential to become a trendy destination for wellness tourism, joining other popular locations worldwide. The country’s diverse landscapes, favorable climate, and rich cultural heritage make it an ideal location for wellness retreats. While overbuilt locations may offer less appeal due to overcrowding and commercialization, other regions with dramatic and beautiful landscapes are perfect for wellness retreats.
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Buying property in Spain involves navigating a complex legal and administrative process. This includes:
Each step can be time-consuming and requires careful attention to detail to avoid potential pitfalls.
Our company, PCC Property, along with our extensive network, can streamline this process, ensuring a smooth and efficient transaction. We provide comprehensive support from start to finish, including:
By leveraging our expertise and connections, we can help you overcome the administrative challenges and make your investment journey as seamless as possible.
Investing in property in Spain offers numerous benefits, from personal enjoyment and long-term appreciation to lucrative rental income and commercial opportunities. The current market conditions, combined with a positive economic outlook and growing sectors like wellness tourism, make Spain an attractive destination for property investment. While the process can be complex, professional support can help navigate these challenges, making your investment journey smooth and successful.
For more detailed guidance and specific property recommendations, get in touch with us today and we would be delighted to assist you in anyway we can.
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We’ve Moved Offices on 1st August 2025!
Private Client Consultancy is excited to announce that we have moved to a brand-new office space, designed to better serve our clients and reflect our continued growth.
Effective Date: Friday, 1st August 2025
New Address: Urb Jazmin De Miraflores, C. Jazmín, 2, Mijas Costa 29649, Malaga, Spain
Our phone numbers and email addresses remain unchanged.
All in-person meetings scheduled from 1st August onwards will take place at our new location. Please update your records accordingly.
We look forward to welcoming you to our new space!
Check out our detailed area guides along the Costa del Sol and Algarve.
Keep up to date with property news along the Costa del Sol with our blogs.
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