What are the pros and cons of buying a property in Spain?
Luxury property in Spain is often cheaper than comparable properties in other European countries. In recent years, Spain has built too many houses and new developments; therefore, estate agents have struggled to sell them. Despite backlogs selling in popular areas, you can still purchase a Spanish apartment for €50,000 or a country home for €150,000. The Spanish market for investment properties has been on the rebound since the global financial crisis of 2008. It is common for Spanish investment properties to be advertised with a 60% discount.
In recent years, the Spanish property market has been one of the fastest growing in Europe. The cost of living in Spain is relatively low compared to other Western European countries, making it an attractive option for retirees and families alike. Many foreigners choose to buy rather than rent. Spain has a high proportion of homeownership, and the large ex-pat communities scattered across the country mean that a large proportion of real estate is already foreign-owned.
Property types that are available for sale in Spain
Some popular property types in Spain for sale include apartments, villas, townhouses, and rural properties. It is important to understand what kind of property you are looking for and the key features you require. Some of these may be essential to you, such as modern or new development, ground-level accessibility or proximity to restaurants, bus stops, and so many minutes’ walk from a beach.
According to a recent study, properties with panoramic sea views in Spain tend to be valued at around 15% higher than similar properties without sea views. Additionally, other features may be desirable depending on the property; these may include multiple bedrooms, bathrooms, a private garden, sea views, a roof terrace, a private pool or a communal pool; in fact, Spain has the greatest number of properties with swimming pool ownership, with over 3 million homes having pools. Spanish Realtors & Estate agents will often arrange viewing trips where potential overseas buyers are shown around multiple properties for sale.
Villas for sale in Spain
The classic Spanish property or dream home; the villa – a modern, detached villa for sale in Spain with a garden and private pool/communal pool. Comfort, privacy, multiple bedrooms, bathrooms, sea views and space set the stage for the good life. Because of this, villas are the most sought-after type of Spanish property.
Detached Villas often come with all the modern conveniences and luxuries you’d want, like air-conditioning, garages, and more. Most detached villas in Spain are located in rural areas and often come with a large plot of land.
Apartments for sale in Spain
Apartments, called pisos, are the most common type of housing. The quality and size of property for sale in Spain varies enormously, from a studio to a 2-storey duplex (maisonette) or penthouse with multiple bedrooms, bathrooms and sea views.
Among Spanish buyers, apartments are the most sought-after type of property. There is a wide variety of apartments to choose from in Spain, in towns and cities, along the coast, and increasingly in new developments or apartment complexes with a communal pool.
Most semi detached property for sale in Spain is found in towns and villages. The demand for modern semidetached properties is a new development among both Spaniards and foreigners in recent times.
People buy semi-detached houses as they find that they provide many of the advantages of villas, multiple bedrooms, bathrooms and a terrace at a more reasonable cost (buying and maintaining).
Semi-detached properties for sale in Spain often have a private garden and perhaps a small pool. Houses are more manageable than villas but offer more variety than apartments. The surrounding properties may also share a communal pool and gardens.
As well as offering a good mix of space, privacy, outside areas and communal facilities, these new developments are also more straightforward and cheaper to administer. The communal aspect of a house offers greater security and facilitates access to a residential community.
For those interested in spacious living, sales of luxury homes in Spain have risen by 30% in the past year. The Spanish property market is one of the most exciting in Europe, with a wide range of stunning luxury homes on offer. From traditional Spanish fincas to modern apartments, there is something to suit every taste and budget, it is not uncommon for luxury homes to come with their own private pools.
Spain’s most expensive and luxurious homes are in the Canary Islands. The average price of a luxury home in Spain is €1.5 million. It is not uncommon for wealthy individuals to purchase luxury homes as investments. Spanish property prices have increased significantly recently, making buying a luxury home in Spain a sound investment.
Village house (casa de pueblo)
Until recently, foreigners tended to buy coastal properties and rural properties inland, such as cottages and farmhouses. Recently, there has been a growing interest in buying village properties in Spain’s attractive villages. Village property for sale in Spain is usually a semi-detached townhouse with small backyard gardens, but no swimming pool.
Country house / Farmhouse (cortijo / masia / casas rural / finca)
Many people are forsaking the Costas’ stress, hustle, and high prices to buy inland cortijos. Spanish country property for sale by citrus groves, olive groves, almond blossoms and rural tranquillity is a dream for many people.
Golf Properties for sale
The appeal of golf property for sale in Spain extends beyond unlimited golf. Golf real estate is highly sought after due to the safe environment and location. Security and facilities are excellent at golf resorts and well-kept common areas. It’s ideal since golf properties are often second homes for many golfers, meaning they’re often empty.
Spanish property hotspots of 2022
Spain has several property hotspots right now- some of them never really cooled off. Location is always key. Property in the Balearics and Costa Blanca and Barcelona are rising.
Alternatively, you can opt for an authentic Spanish hill-top location with white villages and farmers riding donkeys through them or in the Alhambra. Then there is recession-proof Mallorca, still attracting mega-riches and royalty, and ever-fashionable Ibiza, attracting buyers’ children born after the Sixties.
Sales of hot properties in Spain have increased by 20% in the last year. Some properties in Spain are so hot that they have been known to sell within minutes of being listed!
Buying property in Spain: Where to invest
Overseas properties in Spain are often much cheaper than those in other countries. If you are searching for a location in Spain, Barcelona and Madrid are the most popular cities. Property buyers have been flocking to them for a long time. Property prices, however, are slowing down in these cities. The average price per square metre for popular locations property in Spain is €2,035.
How do the regions of Spain differ?
A few miles from North Africa, Spain is Southern Europe’s largest country. It borders Portugal and France. The climates and landscapes in Spain offer a wide range of choices for property buyers.
Across the country, there are as many different kinds of property markets as there are places to live, from A Corua in the north to Tarifa in the south.In addition to luxury penthouses in cosmopolitan cities like Barcelona and period townhouses in cultural hotspots like Córdoba, Granada, and Seville, you can also buy seaside villas along the Costa Blanca and Costa del Sol, as well as apartments on the Balearic and Canary Islands -Spain has it all.
The Balearic Islands are a popular destination for European buyers, especially those from the UK and Germany. The Balearic Islands are an archipelago off the coast of Spain. They are popular tourist destinations with millions of visitors each year. The four largest islands are Mallorca, Menorca, Ibiza and Formentera. The cost of living on the Balearic Islands is 20% higher than the rest of Spain, but this is offset by the fact that property prices are also relatively high. The average price for a detached house in Mallorca is around €500,000, while the average price for an apartment is around €300,000.
With sandy beaches, palm-tree-lined boulevards, traditional Spanish influences, and a lovely warm climate, the region and city of Alicante are hugely popular with tourists and international ex-pats. Some popular locations in Alicante include the islands of the Canaries, which is a great place to enjoy the sunshine and views of the sea, and Punta Prima, which is an easy-access location with plenty of amenities.
Orihuela Costa is a town located in the province of Alicante, southern Spain. It is part of the Vega Baja del Segura comarca. Nestled between the sea and the mountains – makes it a perfect place to enjoy a holiday and its easy access to round-the-clock sunshine makes it a ideal location for property buyers looking for an investment. Orihuela Costa is one of the most affordable places to buy property in Spain, with the average cost of a 3-bedroom home coming in at just over €100,000.
Punta Prima is a small town located on the southeast coast of Spain in the province of Alicante. The town is situated on a cliff overlooking the Mediterranean Sea. It is famous for its sandy beaches and crystal-clear waters. The average price for a 3-bedroom home in Punta Prima is €300,000.
The Canary Islands are a popular destination for property investors from all over the world. The mild climate, stunning scenery and relaxed lifestyle make them attractive for those looking to purchase a second home or investment property. The Spanish property market is booming, and the islands’ infrastructure is modern and efficient. The islands enjoy year-round sunshine, making them a perfect holiday destination. Each of the Canary Islands has its own unique landscape.
Cran Canaria is the most populous island in the archipelago. The Canary Islands offer great views, easy access to the sea, and plenty of sunshine. They’re also a perfect place to enjoy a round of golf or a holiday. Gran Canaria Property Costs are 20% to 30% lower than on the Spanish mainland.
La Palma is one of the Canary Islands, and is the most north-westerly island of the group. It is also the fifth largest island in the archipelago. The cost of living on La Palma is significantly cheaper than in other parts of Spain, with rent and food costs being particularly low. This makes it an attractive destination for retirees and others on a fixed income.
Modern architecture, a rich cultural scene, and so, expats from the UK find Valencia to be a desirable area, and the city itself is an excellent place to invest.
British ex-pats are increasingly attracted to this former fishing village on the Costa Blanca. Torrevieja could be an excellent place to consider buying a property with its close proximity to airports and stunning coastline.
This uber-trendy city in Catalonia is bursting with culture, food and nightlife. But living here comes at a cost, as it’s the most expensive place to buy a house in Spain.
Coastal properties for sale in Spain
There are two most popular mainland Costas: Costa Blanca and Costa del Sol, in addition to a plethora of golf courses near famous towns like Villamartin and Playa Flamenca.
The prices are generally low, sometimes as low as €50,000 for a two-bedroom apartment near the sea. In Torrevieja Cabo Roig, for example, you might pay €90,000 for a spacious two-bed apartment with a sun terrace or pool. In Algorfa, a popular expat destination, a comparable property can be found for closer to €70,000.
Rioja is a province and autonomous community in northern Spain that’s known for its wine. Vineyards surround the old town of Haro in the Ebro valley below the Cantabrian Mountains.
If you’re looking for an affordable place to invest in real estate, Rioja is a great option. The scenery and views of Rioja are absolutely stunning – from the wooded mountains to the pristine beaches, there’s something for everyone to enjoy. With its great location and perfect climate. Property prices in Rioja are still very affordable compared to other Spanish provinces such as Madrid or Barcelona. An average property or apartment in Rioja would cost around 150,000 euros; however costs have increased by an average of 20% Over the last five years.
Property in Costa Blanca
Costa Blanca property for sale is some of the most popular in Spain. From Denia in the north to Torrevieja in the south, the Costa Blanca has beautiful beaches, sun-kissed villas, and good food. The coast has a well-developed tourism industry.
A popular holiday or second home destination for Brits, the Costa Blanca is a top choice for many. With over 200 kilometres of coastline in the province of Alicante, Costa Blanca is known for its proximity to major tourist destinations such as Benidorm and Alicante.
Property in Costa del Sol
The Costa del Sol is the coastline of the province of Malaga in southern Spain. It extends from the municipality of Nerja in the east to Manilva in the west and comprises 24 municipalities. The costa is about 150 km long and covers a width up to 45 km at its widest point. Many people buy property in Malaga because of the city’s great weather. The average cost of a house in Malaga, Spain, is €200,000.
Once a serene fishing village region, the Costa del Sol, which translates as ‘sunny coast’, has transformed into a world-renowned tourist destination with high-rise settlements and chic villa resorts. In addition to its stunning beaches, calm waters and stunning landscapes, the Southern coast receives more sunshine hours than the UK. It is easy to see why Brits flock to the location for holidays and to relocate.
Golf properties and resorts in Costa del Sol are becoming increasingly popular among investors and holidaymakers. Marbella has become known as the Costa del Golf because of the growing number of golf courses and resorts there.
An apartment for sale in a complex near Marbella can be bought for €100,000, but a spacious apartment in a gated community in a desirable location would be about €300,000.In addition to Estepona and Benahavis, Nueva Andalusia, Mijas Costa, and Nueva Andalusia are also very popular areas. There are lots of two-bedroom apartments for less than €100,000 in Benalmadena, a tourist and ex-pat haven.
Riviera del Sol
Riviera del Sol is a popular tourist destination due to its favourable climate and beaches, with many seafood restaurants and bars and once one of the most sought-after locations for property in Spain. As a result, Riviera del Sol is also one of the most expensive places to buy property in Spain. A Riviera del Sol property’s average cost is €1,283,333. Some of the most expensive Riviera del Sol property for sale is located in the gated community of La Zagaleta.
Property in Costa Tropical
Costa Tropical property is a great option if you want to invest overseas in a Mediterranean or Spanish property. The Costa Tropical stretches between Almeria’s desert-like coast and the thriving beaches of the Costa del Sol. It is framed by the Sierra Nevada national park, flanked by beautiful seas, and nestled between the two coasts.
Costa Tropical property for sale is relatively inexpensive due to the lack of mass tourism, so if you want to buy at a bargain price in the Costa Tropical, head southwards! Spain’s Costa Tropical is the next Spanish property hotspot with a climate that is one of the healthiest in Europe and the second healthiest in the world! With over 2000 years of history, sites like the Alhambra, lush gardens and breathtaking castles, the Costa Tropical is the next Spanish property hotspot!
The Almera province is located in the southeastern part of Spain and is one of the country’s largest provinces. It is a beautiful area with great views of the sea and the Canary Islands.
The cost of living is affordable, the climate is perfect for enjoying the outdoors all year round and it is a great place to buy property. Second, the Costa del Sol is close by and many people are looking for second homes in the area. Cost of property in Almera province is usually lower than average when compared to the rest of Spain but has increased significantly over the past decade.
A stretch of unspoilt coastline between Murcia and Granada is not as developed as the Costa del Sol, perhaps not as well-known by the British. Yet, its fans like that its villages retain much of their Spanish identity – it’s the “real Spain” still.
The popular Mojacar resort is less than an hour’s drive from the airport and is conveniently located for exploring Almeria. It is an excellent holiday destination for families and couples. Choose from one- or two-bedroom apartments for under €100,000; villas start at just over €200,0.
Other Popular Locations in Spain
- Costa de la luz is one of the sunniest places in Europe, where you can find some of the best seafood in Spain and a popular Spanish tourist destination.
- Costa Verde is a popular destination for surfers due to its high waves and consistent surf. The climate in this region is significantly milder than the average Spanish climate, making it a popular tourist destination.
- Costa Brava is one of the most popular holiday destinations for golfers and Marbella is one of the top real estate markets in the world.
- Costa Vasca, also known as the Basque Coast, is a coastline in the north of Spain that stretches for about 200 km. It is known for its steep cliffs, secluded beaches, and hidden coves. Buyers looking for properties in Costa Vasca can find some great deals.
- There is a great demand for Costa D’en Blanes Property For Sale as the area is very popular with both national and international buyers.
- The Costa Calida, which means “warm coast” in Spanish, is located in the southeastern region of Spain on the Mediterranean Sea. The average temperature in this region is said to be 22 degrees Celsius.The Costa Calida stretches for over 200 miles along the Mediterranean Sea and is known for its warm climate. The average price of a property in Costa Calida is €158,000? That’s quite a bargain when you compare it to prices in other popular coastal areas of Spain!
- Costa Garraf is one of the most affordable areas in Spain for purchasing property. The average cost of a home in Costa Garraf is €165,000, which is significantly lower than the national average of over €300,000. This makes it an affordable option for those looking to purchase property in Spain and is considered to be one of the most beautiful and cleanest beaches in Europe.
Region of Murcia
Murcia offers great value for money in terms of property price compared to more touristy hotspots
Murcia province is located in the southeast of Spain and has a population of over 1.4 million people. The province is known for its agriculture, particularly fruit and vegetable production. The average price of the property for sale in Murcia is £189,000. There are many different types of property for sale in Murcia, from apartments and villas to country houses and even commercial premises. Between 2002 and 2007, house prices in Murcia increased by 400%. When looking for property for sale in Murcia, Spain, it is important to consider the climate. The region has a semi-arid climate, which can be tough on both people and plants.
Costa Calida (Spanish for “Warm Coast”) is a region on the Mediterranean coast of Spain. It is located in the southeastern part of the country, in the autonomous community of Murcia. Costa Calida is one of the sunniest places in Europe, with an average of 320 days of sunshine annually! The Costa Calida extends from Cabo de Palos in the north to Águilas in the south, with a coastline of approximately 200 km. Costa Calida is home to some of Spain’s best beaches, including La Manga and Mazarron. The Costa Calida has a wide variety of property options available, from luxury villas and apartments to more affordable townhouses.
Market trends and prices in Spain’s property market
The appeal of Spanish real estate has not waned. Among northern Europeans, this vibrant country continues to be one of the most sought-after places to emigrate to or buy a second home. It is not uncommon for properties to be advertised as “bargain properties.” This usually means that the seller is willing to negotiate on the price.
The Mediterranean coasts enjoy mild winters, low rainfall, and sunny days, making them popular areas for Spanish property buyers. Young people and families looking for a healthier, more relaxed lifestyle are increasingly attracted to Spanish villas.
In terms of property investment, Spain offers many great opportunities. It is not just a profitable real estate market but also an attractive place for people who want to relax and retire.
Rental Yields From Spanish Villas & Apartments
In Spain, it is common for people to purchase property to rent it out as a holiday home. Therefore, many properties in Spain are advertised as “perfect property for rental purposes”.
Apartment purchases have become more attractive in recent years from a yield perspective – a completely new scenario
Rents in Spain have risen by 26% in urban areas in recent years. Gross rental yields for apartments in Barcelona’s Ciutat Vella ranged from 4.40% to 5.15% before taxes, vacancy costs, and other costs.
Real estate investment in Spain
Bank of Spain statistics indicates that real estate in large cities and popular seaside resorts provides a considerable return on investment despite the ongoing economic crisis.
Spanish Property Price Statistics & Trends
- Spain has seen steadily rising prices from 2016 to 2020, despite the COVID-19 outbreak impacting the market in 2020.
- Home prices increased by 2.1% yearly, with new-build prices up by 4.2% and second-hand prices up by 1.8%.
- As of 04/04/2022, Spain’s average square metre price is €.1,701, up -18.01% from 2004.
- 82,119 properties were listed in Spain between 20/04/2022 and €445,771.
- Aragon, Castile, and Leon have the lowest prices in Spain, with an average price of 135,295 € and 185,669 €, respectively.
- Madrid, Barcelona, and San Sebastian are Spain’s most expensive major cities. From €3,000 to €3,600 per sqm in all three areas.
- Madrid had the highest land prices in Spain, at €338 per square metre.
- Top four after Madrid: Canary Islands (€245), Catalonia (€184), Andalucia (€171) and Valencia (€158).
- Spain’s Castile y Leon has the cheapest land prices, with an average of €66 per square meter.
How to buy a property in pain
Foreign buyers find Spain very welcoming. Expats in Spain are able to buy a property with relative ease.
If you want to buy, you need a financial number, which you can get at a police station with your passport. Spanish and EU citizens are usually processed on the same day; others may take a few weeks.
For foreign property owners, Spain offers the Golden Visa program. The scheme allows you to get a residency visa if you invest more than £500,000 in Spanish properties.
The Golden Visa is primarily for retirees and holiday home buyers, but it is also very popular with foreign investors.
Fees for buying property in Spain
- Many of these costs are negotiable – for example, solicitors don’t charge a fixed fee. Buyers pay the majority of costs:
- Property transfer tax:6-10% (existing properties) / VAT (or IVA) at 10% (new properties)
- Notary costs, title deed tax, and land registration fee:1-2.5%
- Legal fees:1-2% (including VAT)
- The seller usually pays Spanish estate agents. Fees for a real estate agent are typically calculated as a percentage of the final sale price.
Financing options for buying property
Buying a property in Spain requires understanding the actual costs involved. Be sure you are clear about the ongoing costs of owning a property in Spain.
Foreign buyers can obtain financing, but some prefer to buy without a mortgage. Most international and Spanish banks offer mortgages; some offer deals for ex-pats from certain countries
You may need a higher deposit as an overseas buyer because you can only borrow at a lower loan-to-value (LTV) rate. Non-residents can typically borrow 60-70% LTV, depending on the mortgage. Residents can borrow up to 80% of the property’s assessed value
You will not be able to secure a mortgage unless you own a property. In the property’s contract, make sure you have a clause allowing you to back out if you cannot get a mortgage.
We recommend finding an independent lawyer specialising in Spanish land law (urbanismo). It means they work solely for you and not for the agent or developer.
You should ensure that those involved in the transaction are qualified and experienced in Spain’s property conveyancing system, as it differs from the UK’s.
When a property is sold in Spain, any debts attached to it are transferred to the new owners. This means it’s essential to ensure that the property does not have debt attached to it or if it does, those debts are covered under the contract.
In what ways does living in Spain differ from living in other countries?
The Spanish culture is very diverse, with many different customs and traditions.
The Spanish lifestyle is known for being friendly, relaxed, and family-friendly. With alfresco dining for much of the year in many rural regions and world-class cuisine, homes for sale in Spain remain popular.
Spain’s climate and diet both promote healthy living. Spain produces almost half of the world’s olive oil and a wide variety of fish and seafood. It goes without saying that Spanish wines such as Rioja and cheese, are some of the best in the world, as are Spanish tapas and paella, both of which are popular regional dishes in Spain.
Spain is home to some of the most beautiful mountain views in the world. The Pyrenees, Sierra Nevada and Picos de Europa are all breathtaking regions worth visiting.
In recent years, the Spanish government has invested heavily in upgrading the country’s infrastructure, including its highways, railways, airports, and seaports. As a result, Spain now boasts modern infrastructure and one of the most efficient transportation networks in Europe, focusing on improving links between cities. This has made it an attractive destination for property investors looking to take advantage of the growing economy.
In Spain, it is not uncommon for people to haggle over the price of local shops and properties for sale. This is because the Spanish believe that the true value of an item lies in what someone is willing to pay for it.
Whether you seek culture or fiestas, every region in Spain has something to offer – from flamenco in Andalusia to bull-running in Pamplona; human towers (castells) in Catalonia to the ‘Fallas’ in Valencia. 47 of Spain’s landmarks are world heritage sites, and accessing them has never been easier thanks to Spain’s extensive motorway network and high-speed train network.
In Spain, private and public healthcare systems coexist, and several hospitals are world leaders. Expats and locals can find a bilingual education at many international schools.
The Cost of Everyday Living in Spain
Spain’s average monthly cost of living is €900. The price includes rent, utilities and food. .
When working out exactly what it will cost you to live in Spain, it is important to understand several factors. These include how much you may expect to spend on food, drink, dining out, and bills, such as water and electricity. You will also get a much better sense of the potential outgoings in the country by knowing how much you can expect to pay if you rent or buy.