What did we learn about property investment in Spain? 2024 retrospective
Spain’s real estate market has been holding strong, with property prices up by 5.71% this year.
Welcome to the Homevest Digest, a newsletter for non-residents looking to buy properties in Spain.
For our last newsletter of the year, let’s look at what happened with property investment in Spain in 2024. We’ll share what we’ve learned, what’s next, and where you might want to invest when you’re ready.
Before we dive in, if you’d like to catch up on some of our other posts, check these out:
Read time: 6 minutes
Despite all the challenges in the Eurozone, Spain’s real estate market has been holding strong, with property prices up by 5.71% this year.
Prices per square meter have been steadily rising, showing the overall trend.
The Balearic Islands, Canary Islands, and Valencia have seen the biggest price hikes, which makes sense—they’re perfect getaways from busy cities. Whether you’re thinking of a holiday home for yourself or a place to rent out, these spots will probably stay popular in 2025 too.
Just a heads-up, though—if you’re planning to turn your property into an Airbnb, it might be tricky in some places. Valencia, for example, has stopped issuing new tourist rental licenses in the center for at least a year.
On the other hand, Galicia is becoming a popular place to buy property in Spain. The region saw a 15.3% increase in price per square meter in the first half of 2024, showing a strong market.
"Galicia is being increasingly valued for its environmental conditions. We have noticed a significant increase in demand for homes from international buyers, from other parts of Spain and also from locals looking for a second home here," explains Rafael Rosendo, director of Lucas Fox in Galicia.
Can you boost your investment with a mortgage?
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If you find a good mortgage deal, this strategy can really help your finances grow over time.
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Our goal is to give you a clearer picture of your options, so you can see your down payment and price range — helping you get ready for your property journey.
6 places to invest in a property in Spain
Spain is full of amazing investment opportunities, especially in areas with rising rental demand like coastal regions and city centers.
Let’s explore 6 great places to invest in, offering strong financial returns and a fantastic lifestyle.
We’ll take a look at the highest and lowest property prices in each area, plus some pros and cons of buying there. All data is from October 2024, sourced from indomio.es.
#1. Barcelona
The priciest homes in Barcelona were in the Sarrià-Sant Gervasi area, going for about 5,582 EUR/m².
On the other hand, you could find the most affordable homes in Nou Barris, with prices around 2,522 EUR/m².
Pros and cons of buying a property in Barcelona
⊕ the cost of living in Barcelona is lower than in places like Germany, the UK, or the US
⊕ there’s a big expat community, so renting out your place year-round is a great option
⊖ property prices in Barcelona are among the highest in Spain
⊖ Barcelona no longer issues tourist licenses, so you can’t rent your place to tourists for short stays unless it already has a license
✈️ Barcelona is easily accessible from the UK and Germany with daily flights. Big US cities like New York and Los Angeles also have frequent flights to Barcelona.
#2. Madrid
Properties in the Salamanca area had the highest prices, averaging 8,180 EUR/m², while Villaverde was much more affordable, with prices around 2,133 EUR/m².
Pros and cons of investing in property in Madrid
⊕ foreigners can buy property in Madrid, following a simple legal process, just like in other parts of Spain
⊕ the price per m² for an apartment in Madrid can be up to 65% cheaper than in London, depending on its location inside or outside the city center
⊖ multiple taxes related to property ownership
⊖ renting out your property subjects you to a non-resident income tax, which ranges from 19% to 24%
✈️ There are many flights from the UK, particularly from London to Madrid, available through various airline options—the same in Germany.
#3. Tenerife (Canary Islands)
The highest property prices in Santa Cruz de Tenerife were in the Centro-Ifara area, with an average of 2,772 EUR/m².
On the other hand, the Suroeste area had the most affordable prices, averaging 1,565 EUR/m².
Pros and cons of buying a property in Tenerife
⊕ property prices are more affordable compared to Madrid or Barcelona
⊕ Tenerife is a popular vacation spot, so there’s a great opportunity to rent out your property
⊕ property owners can enjoy tax benefits, especially on rental income
⊖ rental income can be inconsistent due to seasonal changes in tourist arrivals
⊖ insurance for properties, especially near the coast, might be higher because of risks like flooding or storm damage
✈️ Tenerife is a popular vacation spot for people from the UK, with lots of airlines offering both direct and connecting flights, including budget-friendly ones.
#4. Mallorca (Balearic Islands)
The average asking price for homes was 5,052 EUR/m², which is a 22.47% increase from October 2023, when it was 4,125 EUR/m².
Pros and cons of buying a holiday home in Mallorca
⊕ properties in Mallorca usually increase in value, making it a good investment
⊕ the cost of living is generally lower than in the UK
⊕ high rental income potential
⊖ Mallorca’s popularity has pushed property prices and transaction costs up, so the initial investment can be pretty high
✈️ Mallorca is easy to get to from major European cities, with regular flights, so it’s convenient for property owners to visit.
#5. Alicante
In the province of Alicante, Teulada had the highest asking prices, at 4,070 EUR/m², while Almudaina had the lowest, with prices around 279 EUR/m².
Pros and cons of buying a holiday home in Alicante
⊕ lots of UK expats, so plenty of social activities for English speakers
⊕ well-connected with its international airport and high-speed train services
⊕ beautiful sandy beaches
⊖ more expensive than other coastal areas in Spain
⊖ the rental market can be tough, especially in the high season, with many holiday homes and rental properties available
#6. Galicia
The highest asking price for properties in Galicia was in the province of Pontevedra, at €1,626/m².
In contrast, the lowest price was in Ourense, with an average of €1,001/m².
Pros and cons of buying a property in Galicia
⊕ traditional Galician-style properties have large plots, ensuring privacy
⊕ easy access to other parts of Spain and Portugal, making travel between the two countries convenient
⊖ the mild climate may not appeal to everyone
What other cities or trends do you want to explore in 2025?
Let us know, and we’ll cover them in our upcoming editions!
PS. If you found this valuable, here are other ways we can help:
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