The short answer is that the Spanish property market is very lucrative. It’s true that the property market is experiencing an upward trend, and in Spain, it definitely is a buyer’s market. There’s a very well-publicised housing crisis in Spain that means residents aren’t having access to the housing they need.
Still, visit here for a week and drive a 3-mile radius, and you will see at least 3 different building sites putting up houses or apartments as fast as possible. There has been a dip in UK nationals buying property in Spain, with only 8.4% of all property sales in Spain coming from UK residents. That’s largely due to the 90-day in 180-day restrictions, but that doesn’t mean purchasing a property isn’t a good investment. Still, in 2023, 12,470 Spanish property sales came from a British buyer, and that was 30% more than German buyers.
Read on to learn more about Spanish property investments in 2025.
What Does The Data Say?
The Spanish housing market is consistently growing, in volume and price. Developers are rapidly constructing new residences, and new build construction costs increased by 9.1% over 12 months in 2024, reaching 1,310 €/m², so companies had no choice but to increase the prices. But Spanish people can’t necessarily afford to buy them, and that’s half the issue. So much so that Pedro Sánchez wants to impose a double Spanish tax rate on foreign investors in the Spanish property market.
Still, that’s only talk, and it’s unlikely his government will ever approve that.
House prices are what people are worried about, with a notable increase in resale homes. In 2024, the average price per m² reached €2,244, the highest since 2006. Rent prices also increased to €13.3/m² in 2024.
Generally, in Q1 and Q2 of 2024, home prices rose by 7.1% year-on-year.
So, with all those numbers that seem to be going up in mind, you’re probably wondering why the Spanish property market is still a good investment. Stick with us.
Why Spanish Properties Are a Good Investment
They are if you’re not Spanish. The issue is that the Spanish income is so low and it isn’t increasing at the rate the housing market is. Currently, the Spanish national minimum monthly income is €1,184.00 per month in 2025. And the taxes in Spain are high. The Spanish taxation rates make some investments almost impossible for some residents. And if they have already fallen into the renters trap, have a car to pay for, and are trying to save to buy a house, it’s almost impossible.
Still, compare it to the UK, and you can still find a property that’s an incredible investment. You can find a nice coastal apartment in the Costa Del Sol for around €120,000 (area depending), and it’s the type of property that will always increase in value.
And that’s the selling point for you – the properties will always increase in value. Even if there’s a slight dip in the market, you can expect a 10-year property investment in Spain to increase dramatically. Looking at the previous 10 years, a property investment would have appreciated by 34% in 2024.
The Best Areas of Spain to Buy a Property
The better the area, the better the investment. And we bet your mind is going to the coastal areas in the Costa Del Sol or something similar. Don’t be fooled. A lot of foreign tourists are going slightly more inland where the coast is not necessarily out of reach, but it’s not on the doorstep.
Properties in these locations haven’t caught up with the rest of the market, with beautiful apartments selling for as little as €80,000. In areas like BigAstro which is only a 20-25 drive to the beach, you can find a home for as little as €32,000 and it’s one of the places tourists are going to to find cheaper summer holiday rentals.
According to research, these locations are voted the best places to buy a property in Spain as an investment:
- Costa del Sol (Marbella, Estepona)
- Valencia
- Malaga
- Alicante
- Madrid
- Barcelona
Even if you buy a property in these areas to rent out for a few years and then sell, you will, without a doubt, make money on your initial investment. And if you look at the capital gains tax scale, it’s actually better in Spain, so you won’t pay as much tax when you sell.The succession tax Spain is also better, so if someone was to inherit the property from you, they wouldn’t pay as much.
So, yes, a Spanish property investment is still a great idea. And now is the best time. Explore the Spanish property market today and see if you can find your next investment.
