After 2021, in the middle of an economic and social crisis brought about by the pandemic, the real estate market is now transforming and evolving towards a new model. We already saw an increase in real estate investment at the end of the year since it has always been known for low levels of uncertainty.
Society was unprecedentedly kept in lockdown to control Covid-19 pandemic, resulting in many structural and social changes that led people to look for new homes that could fulfill their needs: generally bigger spaces in sunnier places such as villas or country houses, what used to be holiday residences.
Real estate has always been one of the most solid, safe and profitable investments, but before purchasing, a deep analysis of the market is mandatory. In this case, in Spain, we need to evaluate with all the data that we could gather what are the best places for real estate investing.
Being up to date, knowing sales rates and having last minute useful information about the state of the housing market in Spain makes us able to make the best decision under our needs and circumstances. And this is what this post is about: Best places in Spain for real estate investing. Let’s go!
Best cities to invest in real estate in 2024
Housing market is, without a doubt, one of the most stable when we consider investing our savings, especially in Spain. Although real estate investment requires a lot of attention, dedication and of course, the help of expert professionals, it is still one of the great choices when it comes to making our assets profitable to, for instance, save for retirement, fight inflation or simply, have a second residence and make some profit.
That said, the profitability of real estate investing fluctuates considerably from one area of Spain to another. Knowing which specific areas and cities are the most profitable to buy is essential to get the most out of our investment.
When it comes to making a real estate investment profitable, the preferred option is to rent the purchased home, but also shor-rent it in the tourism market or refurbish it to sell it later.
For investing, large urban centers are a winner. Madrid, Barcelona and Malaga are major bets for 2024. It is no surprise, the great capitals of our country and the capital of the Costa del Sol are the best areas to invest in housing. Job opportunities, and cultural and leisure offers make these cities highly demanded, and therefore the real estate market is bigger compared to the rest of Spain.
Madrid
In Spain's capital city, rental profitability remains stable and is one of the highest in Spain, above the national average. This means that buying a house to rent it later supposes higher profit than in other areas.
There is no doubt, Madrid is still one of the top cities when it comes to investing in real estate. Its academic, cultural, tourist, leisure and, of course, job opportunities make this city the economic, political and social center of the country.
On the other hand, Madrid has increased its offer on public land for construction in the last few months, especially outside the urban areas. We already mentioned it, there are ideal spaces for villas, ranches, and residentials with common areas, large spaces and all the comforts that new construction offers.
In addition, the surroundings of Madrid are increasingly better connected to the city center thanks to public transport and the suburban network, making them ideal options for workers and students fleeing the hustle and bustle of the city center.
Barcelona
We could not forget to mention the other great Spanish capital. More cosmopolitan and urban, without a doubt, Barcelona is the most Europeanized city in Spanish territory. A gateway to and from Europe. Barcelona is a destination beloved by our European neighbors for its bohemian atmosphere and its cultural, artistic and leisure options.
In terms of rental profitability, as it happened with Madrid, it is higher than the national average and therefore one of the most profitable in the country, a solid bet.
Outside the frenetic pace of the city, Barcelona turns its eyes towards its outskirts, specifically towards municipalities adjoining the Catalan city such as Badalona. These towns are perfectly connected to the center of Barcelona by subway or bus and enjoy tranquility, space, beaches and much less pollution. Quality of life is always a solid investment.
Costa del Sol
Now, leaving aside the obvious, as the large Spanish cities attract the vast majority of European tourists and a large number of residents seeking better job opportunities or simply professional growth, the south of Spain experiences significant growth.
Costa del Sol has become one of the best areas to invest in housing in Spain. Coastal towns with impressive beaches and ideal residential areas to establish a second residence or for vacation rentals. Its current situation and the expected growth of tourism assure a great profit in real estate investment in this area. Current real estate offer is extensive and diverse, since it offers homes adapted to all family models, especially in new houses in towns surrounding the capital.
Cities such as Malaga, Marbella or Estepona have unbeatable conditions. These are the main reasons that make investing in Costa del Sol so interesting:
- High life quality level.
- Great beaches and landscapes.
- An enviable climate throughout the year, with more than 300 days of sun per year.
- An exponential growth in national and international tourism.
- Malaga's commitment to attract digital nomads.
Where to invest in housing on Costa del Sol
Housing market on the Costa del Sol has experienced upward growth in recent years. This is why property developers and investors have set their sights on the most profitable cities in the area in search of a powerful real estate expansion.
While Malaga is usually chosen as a first residence, the entire Costa del Sol is perfect for establishing a holiday residence. These are the most popular locations on the Costa del Sol and their particularities:
- Torremolinos: comfort and good communication thanks to its proximity to Malaga city and its airport.
- Benalmádena: wide tourist offer, infrastructures and proximity to the beaches.
- Mijas and Fuengirola: well-established offer of services and leisure.
- Marbella East and West: prestigious area, luxury homes, beaches and golf resorts.
- San Pedro Alcántara: more peaceful and traditional area close to Marbella.
- Benahavís: nature, golf and luxury homes.
- Estepona: beaches and golf resorts surrounded by nature.
- Manilva-Casares: cheaper area and beaches.
- Sotogrande: prestigious area, nature, golf and polo fields.
Prime Invest is present throughout all Costa del Sol with residential complexes that stand out for their avant-garde and functional design, perfectly integrated into the beautiful natural surroundings around them. This is the case of residential complexes such as:
- Residencial Nereidas, in Torremolinos
- Evergreen homes and Navigolf, in Mijas
- Big Blue and Lar Bay, in Benalmádena
- Artola Homes II, Marbella Sunset and Dunique in Marbella
- The Sapphire, Darya Estepona, Celere Sea Views and Mesas Homes, in Estepona.
- Alcazaba Lagoon, in Casares
- Village Verde, in Sotogrande.
Malaga: best city to invest in housing
In terms of capitals, Malaga is one of the best options to invest. In addition to its evident growth thanks to tourism, the relaxed lifestyle and the interest in sports activities such as golf, more and more Spaniards and foreigners see the Andalusian city as an ideal place to establish their residence. For this reason, it is becoming the best city to invest in housing. In fact, Malaga is already one of the favorite cities for British and Swedish people to buy luxury houses.
The economic and social development of Malaga is evident. What's more, the coastal city has been chosen as the headquarters for Google's cybersecurity center, a situation that will undoubtedly attract new professionals and companies in the coming years.
As mentioned in the cases of Madrid and Barcelona, in the capital of Costa del Sol, rental profitability is the highest in Andalusia. This, along with the exquisite gastronomic offer and a much lower cost of living than in Madrid or Barcelona, makes Malaga one of the best areas to invest in real estate in Spain.
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