Investments in real estate in Spain in 2024 (acquaintance with the economy, tourism and real estate market trends).
Investment in real estate is a key basis for protecting and increasing capital in the future. The main aspect of creating a successful investment portfolio is always the right choice of an expert company to build an investment strategy.
Company VelesClub Int. has been successfully developing since 2015, occupying a leading position in the international real estate sector, by the end of 2023 our services will be available to investors and property buyers in more than 22 countries around the world.
Take a look at the Spanish economy with our international experts:
Last year, 2023, was favorable for the Spanish economy, although quite moderate. Business investment increased by 1.9%, and the construction sector grew by 3.6%. Per capita consumption increased by 0.9%, and government spending by 1.6%. Confirming the preliminary forecast of the Bank of Spain, Spanish GDP growth was stable and averaged 0.6% per quarter, that is, about 2.2 - 2.3% for the entire period of 2023. At the same time, exports decreased by 3.1%, imports decreased less - by 2%.
By the end of 2023, the Spanish economy remains in 5th place among the economies of the entire European Union. At the same time, the Government of Spain is tirelessly fighting for twelfth place on the world stage in the Economic Stability and Growth ranking; Australia is the main competitor for the country.
Let's turn to statistics and prospects: “According to the ranking of the World Economic Forum in Davos, in 2024, Spain will be among the top 20 countries in terms of industrialization rates, based on an analysis of specific rankings in 14 economic sectors. The main industries in the country are: production of automobile parts and accessories (Spain ranks 10th in the world); production of industrial machines (15th place in the world); blacksmithing (13th place respectively) and shoe industry (3rd place!). However, there are also sectors in which Spain has not been able to capitalize on its strengths, such as information and communications technology and the development of high-precision electronic equipment. Spain is not even among the 30 most technologically developed countries. The economic system of Spain is quite complex: in terms of GDP it lags behind leading European countries, but the average income per capita is close to the EU leaders (Germany and France),” states the facts, the Head of Analytics and Investment Block VelesClub Int. Ksenia Shamitko.
An important role in the success of the country is played by its favorable economic and geographical location. The Kingdom is located at the crossroads of the most important economic routes connecting continental Europe with many countries in America and Africa. At the same time, the Spaniards adhere to traditional values that allowed them to provide a comfortable standard of living for their citizens and concentrate on the development of the tourism sector.
Tourism in Spain and records for 2023.
Spain's Minister of Industry and Tourism, Jordi Hereu, told the world that the number of tourists visiting the country in 2023 exceeded the figure of 84 million, an all-time high, with the Kingdom's total tourism income exceeding €108 billion.
The growth of the tourism sector is very important for the development of the country's economy as a whole, which is an important sign of recovery from the crisis in the sector caused by the COVID-19 pandemic. We continue to monitor together the development of the country’s tourism sector and the positive actions of the Government aimed at increasing its efficiency.
Spanish real estate market, facts, figures and features.
Spain boasts a steady increase in property sales year after year. According to data from the College of Registrars of Spain, prices for apartments and households increased by 5% in 2023. The Kingdom shows a significant increase in sales on the primary housing market (about 18%), while on the secondary housing market the growth is more modest (about 5%).
Home sales for 2023 totaled nearly 650,000 units, with median price figures up less than 5% from 2022. According to statistics from the College of Registrars, the share of Spanish real estate sales to foreigners amounted to more than 20% and the average bill for such purchases is higher than that of residents, which has led to the fact that the share of foreign transactions is gradually gaining more and more weight in the Spanish real estate market. Among foreigners purchasing housing in Spain, the leaders are the British (9.5%), Germans (7.5%), French (7.2%), Moroccans, Italians and Romanians (5.4%).
Why Spain?
“You are definitely a winner, if you have “real money” in the moment, you can actively bargain with sellers and reach a deal with the most favorable rate. Don’t forget to enlist the support of leading companies in the global real estate and investment markets for advice and transaction support to increase capital.” – summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.
Any real estate investment requires evaluation and balance, and complete trust in market experts. A team of experienced managers at VelesClub Int. I am always ready to answer all your questions and accompany you at all stages of the transaction and subsequent reinvestment and diversification of your investment portfolio.
Spain, boasting idyllic coastlines, cosmopolitan cities, and deep cultural heritage, has long captured the imagination of international property buyers. Following a period of post-crisis recovery, the Spanish housing market has re-established itself as a thriving hub for global investors in search of stable returns and lifestyle advantages. Whether you aim to buy residential property in Spain for personal use, a holiday retreat, or a steady rental income, the country offers a broad spectrum of options—from chic apartments for sale in Barcelona to upscale villas in Costa del Sol. In tandem with improved financing conditions and government incentives like the Spain Golden Visa property scheme, these factors combine to make Spain one of the best places to invest in across Europe.
Beyond the alluring beaches and famed Mediterranean climate, Spain’s property sector benefits from post-crisis growth in the Spanish housing sector, which has steadily strengthened over the past few years. While prime coastal areas traditionally command premium prices, blossoming inland regions and major urban hubs—such as Madrid—further diversify investment prospects. By tapping into Spanish real estate investment opportunities, foreign buyers can capitalize on both immediate rental yields and the potential for value appreciation supported by stable economic fundamentals and robust international demand.
To understand why Spain consistently entices overseas buyers, it helps to examine the factors underpinning its residential property market. From the revitalized cities to the draw of scenic coastal regions, Spain’s attractiveness stems from the interplay of economic resilience, tourism, and government initiatives:
1. Post-Crisis Growth in Spanish Housing Sector
After the 2008 financial downturn, Spain restructured its banking system and implemented pro-business reforms that helped stabilize the economy and real estate market. This stability paved the way for new developments and a rebound in housing values, especially in desirable locations like Barcelona, Madrid, and the Balearic Islands. Though property prices have trended upward, they still often remain below their pre-crisis peaks, providing room for future appreciation.
2. High ROI on Coastal Rentals in Spain
Holiday hotspots along the Mediterranean—particularly the Costa del Sol—continue to attract vacationers from across Europe and beyond, fueling robust demand for short-term rentals. Buyers keen on villas in Costa del Sol or apartments near the sea can often secure premium rental rates, especially during peak summer months. With travel largely rebounding post-pandemic, coastal landlords stand to benefit from high occupancy and consistent rental yields, creating appealing prospects for short-term letting platforms.
3. Mortgage and Financing Options in Spain
Competitive interest rates and a range of loan products offer foreign buyers relatively accessible financing solutions. Many Spanish banks accommodate international clients, granting mortgages with loan-to-value ratios of up to 60-70% for non-residents. This financing flexibility enables buyers to leverage their capital, diversify portfolios, and potentially secure higher returns on invested funds—subject to thorough due diligence and realistic financial planning.
4. EU Residency Through Property Investment
Spain’s Golden Visa program offers residency rights to non-EU nationals who invest a minimum of €500,000 in Spanish real estate. Along with facilitating easy movement within the Schengen Area, this initiative accelerates the path toward permanent residency or even citizenship. By focusing on Spain Golden Visa property, foreign buyers can merge lifestyle benefits with secure investment growth, adding an extra incentive to choose Spain over other global markets.
Barcelona stands among Europe’s most celebrated cities, prized for its modernist architecture, coastal charm, and thriving entrepreneurial scene. For prospective investors seeking apartments for sale in Barcelona, the city’s diverse neighborhoods and robust tenant demand translate into steady income streams and opportunities for capital gains:
1. Property Market Trends in Madrid vs. Barcelona
While Madrid holds the status of Spain’s political and financial heart, Barcelona serves as a magnet for tourism, creative industries, and digital startups. Apartment prices in central Barcelona may be higher than in many parts of Madrid, yet the city’s enduring appeal to global visitors and professionals underpins stable occupancy rates. Even with recent regulatory changes affecting short-term rentals, well-located flats often maintain resilience thanks to continuous demand.
2. Growing Demand in Popular Expat Areas
Districts like Eixample, Gràcia, and Poblenou have transformed into expat-friendly zones, hosting international communities and co-working hubs. Investors focusing on mid-range or upscale apartments in these neighborhoods enjoy a balanced tenant pool of locals, long-term expats, and international students. The city’s public transport system, cultural attractions, and quality of life consistently keep rental demand strong.
3. Advantages of Renovated Apartments
Many apartment buildings in Barcelona’s historical quarters boast intricate facades and Gaudí-influenced designs. Skillful renovations that preserve original features yet integrate modern comforts often command higher rents and resale prices. Government incentives supporting heritage conservation can further sweeten the deal for property owners willing to undertake refurbishment projects.
4. Steady Returns and Capital Appreciation
Although some pockets of the Barcelona market have experienced price increases, carefully selected properties in central or up-and-coming neighborhoods can still deliver reliable annual rental returns. Over the medium to long term, these properties often appreciate in value, driven by the city’s consistent popularity and the “safe-haven” status of prime Spanish real estate.
The Costa del Sol, stretching along Spain’s southern coastline, epitomizes Mediterranean lifestyle—sun-soaked beaches, golf courses, and a laid-back atmosphere. Buyers seeking more space, privacy, and potential for luxury rentals frequently opt for villas in Costa del Sol:
1. High ROI on Coastal Rentals in Spain
With a temperate climate and year-round tourism, the Costa del Sol appeals to both holidaymakers and retirees seeking second homes. Owning a villa in hotspots like Marbella, Puerto Banús, or Estepona can yield lucrative short-term rental returns, particularly if the property features a private pool, proximity to beaches, and easy airport access.
2. Best Places to Invest in Spain’s Coastal Regions
While larger towns like Marbella command premium prices, lesser-known areas along the coast can also offer strong returns if they boast emerging amenities or improved transport links. Researching local development plans, upcoming golf resorts, or marina expansions can help identify undervalued spots with growth potential.
3. Growing Demand in Popular Expat Areas
The Costa del Sol remains a magnet for expats from the UK, Northern Europe, and beyond, driving demand for well-maintained, secure villas within gated communities. These neighborhoods often provide added perks—like shared sports facilities, clubhouses, and 24-hour security—catering to retirees and families who prefer comfort and convenience.
4. Lifestyle and Exit Strategy
Besides generating rental income, a Costa del Sol villa can serve as a personal getaway or eventual retirement retreat. If the property’s market profile rises over time due to local enhancements or broader real estate trends, owners can capitalize on an advantageous resale or continue collecting passive rental yields.
Spain’s property market extends far beyond Barcelona and the Costa del Sol, with each region presenting distinct investor advantages:
1. Property Market Trends in Madrid
Madrid, as Spain’s capital and commercial nucleus, hosts a dynamic real estate scene. High-end districts like Salamanca draw affluent professionals, while up-and-coming areas like Usera and Villaverde attract a younger demographic. With stable demand from domestic and corporate tenants, Madrid excels for those who prefer long-term rentals over tourist-driven yields.
2. Northern Cities
Cities such as Bilbao and San Sebastián in the Basque Country consistently rank for quality of life and cultural events. Though property prices can be higher, the strong local economy supports stable tenancies and capital growth. Meanwhile, the less-known but flourishing areas in Galicia or Asturias offer lower entry points and scenic landscapes, ideal for mid-range budgets or niche travel experiences.
3. Costa Blanca and the Balearic Islands
Beyond the Costa del Sol, the Costa Blanca and islands like Mallorca or Ibiza also enjoy international acclaim. Spanning from bustling party towns to quieter locales, these regions see high summer occupancy, balancing short-term rental profits with a robust second-home market for wealthier buyers.
4. EU Residency Through Property Investment
For non-European investors, focusing on the Golden Visa threshold in any region ensures you meet the €500,000 minimum real estate investment. Whether you pick a city apartment block or a collection of rural estates, the potential to gain EU residency through property investment broadens your personal and business mobility across the Schengen zone.
Charting Your Path in Spanish Residential Real Estate
From modern apartments for sale in Barcelona to lavish villas in Costa del Sol, Spain’s residential sector caters to a wide variety of investor aims—be it maximizing rental yields, securing a holiday base, or meeting the requirements of the Spain Golden Visa property route. Supported by mortgage and financing options in Spain, robust tourism, and the draw of EU residency, the market continues to flourish, even as global conditions fluctuate.
By examining property market trends in Madrid, identifying local demand drivers, and staying abreast of new developments, buyers can pinpoint the best places to invest in Spain that match their budget and strategy. Thorough due diligence—covering legal frameworks, potential tax implications, and local rental regulations—remains essential, especially for foreign nationals navigating real estate transactions from abroad. Nevertheless, with high international appeal and a steadily improving housing outlook, Spanish real estate investment stands as a compelling proposition for those looking to diversify portfolios, secure stable returns, and enjoy the Mediterranean way of life.
