These are the most attractive Spanish cities for real estate investment in the second half of 2023

These are the most attractive Spanish cities for real estate investment in the second half of 2023

The real estate market in Spain has long been an attractive market for investors seeking solid profitability opportunities. With a well-established legal and tax system, the real estate market in our country offers a wide range of options for those looking to expand their asset portfolio.

In this article, we will explore in detail which are the most profitable cities to invest in housing in Spain according to the latest analysis data from the sector. These data are more than just numbers, as they allow investors to draw up solid strategies and make informed decisions. And, in a real estate market that continually evolves, understanding emerging trends and opportunities becomes crucial to ensure success in a long-term investment.

Is it profitable to invest in a house in Spain?

Some Spanish cities are proving to be true gems for those looking to invest in homes with significant returns. While the average gross profitability throughout the country is around 7.1%, there are cities where investors can exceed this figure and achieve returns that exceed 8%.

The most profitable cities to invest in real estate in Spain

The most attractive cities for those looking to make an investment in real estate not only present promising figures in terms of gross profitability, but also offer a unique combination of prices and annual growth. This combination is essential for investors as it ensures both long-term strength and consistent income potential.

Madrid is, without a doubt, one of the best cities in Spain to invest in housing. With a population of over 3 million, demand for properties both for sale and rent is high. This, together with its cultural, work, tourism and leisure offer, makes it a magnet for investors. The most recent reports reveal that Madrid and Barcelona captured approximately 60% of the total real estate investment in Spain during the first quarter of 2023.

Barcelona is also among the best cities to invest in housing in Spain. This cosmopolitan and tourist city has a diversified economy and a growing population, which increases the demand for properties. Badalona, one of its municipalities, is especially attractive due to its coastal location and excellent public transport system.

Valencia is another outstanding option thanks to its strategic location and constant tourist growth. In 2022, the InterNations Expat City Ranking named Valencia as the best city to live in the world, surpassing popular destinations such as Dubai or Lisbon. The municipalities of Alboraya, Canet de Berenguer and Sagunto have experienced a revaluation in the real estate market in recent years.

Malaga, known for its tourist appeal, is also a solid choice for real estate investors. The high demand for homes for sale or rent, both long-term and for tourism purposes, makes it a promising market. Nearby municipalities such as Fuengirola, Estepona and Torremolinos offer interesting opportunities.

Seville has seen an increase in property prices in recent years, which gives investors the opportunity to obtain good returns in the medium or long term. Additionally, the city offers an active lifestyle and a wide variety of cultural activities.

For those looking to invest in northern Spain, Bilbao is an excellent option. This city, constantly growing, has a solid economy and a high demand for housing due to its strategic location and its tourist attraction. Tourist or vacation rentals are also a viable option in this city.

In summary, Spain offers a wide variety of real estate investment opportunities in cities ranging from the largest such as Madrid and Barcelona to others such as Valencia, Malaga, Seville and Bilbao. The choice will depend on the objectives and budget of each investor, but these cities present favorable conditions.

It is crucial to remember that the market is dynamic and circumstances can change. Before making an investment, it is advisable to do additional research and seek expert advice. At Renta Corporación we have been leading the Spanish real estate market for more than 30 years and we have a team of highly experienced professionals who can accompany you and guide you through the process.