Is it worth buying a property in Spain?
In recent years, Spain has built far too many houses and new developments, therefore has had a hard time selling them. Despite backlogs selling in popular areas, you can still purchase an apartment from €50,000 or a country home from €150,000.
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.
Types of Spanish Properties For Sale
It is important to understand what kind of property for sale in Spain 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, so many minutes walk from a beach. Additionally, other features may be desirable depending on the property; these may include multiple bedrooms, bathrooms, a private pool, a communal pool, a private garden, sea views or a roof terrace.
Villas for sale in Spain
The classic Spanish property or dream home; the villa – a modern, detached property 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.
Villas are detached and often come with all the modern conveniences and luxuries you’d want, like air-conditioning, garages, and more.
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.
Semi-Detached Houses for sale in Spain
Most semidetached 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.
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. A 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 hotspots for property right now – in fact, 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.
Where to Buy Property in Spain
Barcelona and Madrid have the highest property sales in Spain. Property buyers have been flocking to them for a long time. Property prices, however, are slowing down in these cities.
What are the different regions of Spain like?
Spain is Southern Europe’s largest country, bordering Portugal and France just a few miles from North Africa. The climates and landscapes in Spain offer a wide range of choices for property buyers.
Spain’s property market is as varied as its scenery, from A Coruña in the north to Tarifa in the south. From luxury penthouses for sale in cosmopolitan cities like Barcelona to period townhouses in cultural hotspots like Córdoba, Granada, and Seville, to sea-facing villas on the sun-washed Costas like the Costa Blanca and Costa del Sol, and apartments for sale on the Balearic and Canary Islands – Spain has it all.
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 the tourists and international ex-pats.
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.
Murcia offers great value for money in terms of property price compared to more touristy hotspots
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
Costa Blanca and Costa del Sol are the most popular mainland Costas. 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. A comparable property or development in Algorfa, popular with expats, will be closer to €70,000.
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
Golf properties and golf resorts in Costa del Sol are becoming increasingly popular amongst investors and holidaymakers. Due to the growing number of golf courses and resorts in Marbella, the Mediterranean location has become known as the Costa del Golf.
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.
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. Estepona, San Pedro, Nueva Andalusia, Mijas Costa, and Benahavis are popular areas. There are lots of two-bedroom apartments for less than €100,000 in Benalmadena, a tourist and ex-pat haven.
Property in Costa Tropical
Consider investing in Costa Tropical property if your overseas dream property is in Spain or near the Mediterranean. 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! With over 2000 years of history and sites like the Alhambra, lush gardens and breathtaking castles, the Costa Tropical is the next Spanish property hotspot with one of the healthiest climates in Europe and the second in the world!
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.
Mojacar remains a popular spot, less than one hour’s drive from the airport, and a central location for getting around Almeria and a traditional holiday destination – ideal for families and couples in its own right. You have plenty of choices of one or two-bed apartments with a budget of €100,000; villas range from just over €200k
Spain property market and price trends
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.
The Mediterranean coast has a mild winter climate, low rainfall, and a high proportion of sunny days, making it a famous region for buying property in Spain.
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 it’s also an attractive place for people who want to relax and retire.
In Spain, 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 indicate 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% year on year, 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 real estate agents are typically calculated as a percentage of the final sale price.
Financing a property purchase in Spain
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 who specializes in Spanish land law (urbanismo). It means they work solely for you and not for the agent or developer.
You should make sure 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.