Why invest in property in Spain?
26 September 2025
Why invest in property in Spain?
Strong Tourism Market. Spain is the second most visited country in the world, welcoming over 93 million international tourists in 2024 with a total tourist revenue of over 126billion. Tourism accounts for 12% of Spain's GDP.
Attractive Yields and Value Gap. Residential yields in major cities average 4-6% above many Western European peers. Coastal and secondary markets offer opportunities for capital appreciation as prices remain 20-30% below 2007 peaks in some areas.
Macroeconomic Stability. Spain is the 4th largest economy in the Eurozone, with GDP growth consistently above the EU average. Falling inflation and strong job creation support domestic housing demand.
International Buyer Appeal. Spain ranks among the top 3 destinations for foreign buyers driven by lifestyle, climate and accessibility. Golden visas and residency options further boost interest from non-EU investors.
Structural Supply - Demand Imbalance. New housing starts remain below 150,000 units/year, well under the estimated need of 250,000+ to meet demand. This creates sustained upward pressure on rents and sale prices, particularly in urban hubs and coastal hotspots.
Long-Term Demographics & Lifestyle Trends. Growing retiree population and digital nomad inflows increase demand for long-stay and mixed-use residential products. Remote working culture strengthens secondary coastal cities as investment destinations.
Conclusion. Spain offers a compelling blend of income yield, capital appreciation and global demand drivers. With its strong tourism base, supply-demand imbalance along with international appeal, Spanish property stands out as one of the most resilient and attractive investment opportunities.
Investment Trends and Records in Spain
| Investment Trends and Records in Spain
Position of the Spanish economy in terms of key factors for foreign investment: macroeconomic scenario, employment and productivity trends; economic growth forecasts; export history; data on foreign direct investment: by country, sector, relevant operations and main multinational groups present in Spain; business climate indexes, ways to get access to Latin American and North African markets ...
www.investinspain.org |
| Investment Trends and Records in Spain
Position of the Spanish economy in terms of key factors for foreign investment: macroeconomic scenario, employment and productivity trends; economic growth forecasts; export history; data on foreign direct investment: by country, sector, relevant operations and main multinational groups present in Spain; business climate indexes, ways to get access to Latin American and North African markets ...
www.investinspain.org |