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Where are the best places to invest in Galicia right now? Is Santiago de Compostela still the top pick, or are cities like A Coruña, Vigo, and Lugo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the region. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Galicia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Ourense is attracting investors with its thermal spa tourism and affordable property prices
Ourense has become a hotspot for investors, primarily due to its thriving thermal spa tourism. The town is famous for its numerous hot springs, which offer a unique and therapeutic experience. These thermal baths, such as As Burgas and Termas de Outariz, are open year-round and have become popular landmarks, drawing tourists from all over.
In addition to its natural attractions, Ourense is recognized for its well-preserved medieval heritage and excellent local cuisine, making it a top destination for wellness tourism. The town's commitment to promoting thermal tourism is evident through its membership in the European Historic Thermal Towns Association, which helps attract more tourists and investors.
Another significant factor drawing investors to Ourense is its relatively low property prices. The median price for an apartment is €1,670/m², and for houses, it's €902/m², which is lower compared to other Spanish cities. This affordability, combined with the rising demand for properties, makes Ourense an attractive option for real estate investments.
Sources: Historic Thermal Towns, Properstar, CaixaBank Research, Turismo de Ourense
Here is a stunning view of the Termas de Outariz in Ourense, where visitors can unwind in natural thermal waters surrounded by breathtaking landscapes. (Source: The Guardian)
2) Pontevedra's old town is gaining attention for its pedestrian-friendly streets and growing interest in urban living
Pontevedra's old town is becoming a hot spot for real estate, and there are several reasons for this trend. One of the main factors is the pedestrian-friendly streets that have transformed the area into a desirable place to live. Since the city prioritized pedestrians, there have been no pedestrian fatalities in over a decade, making it one of the safest places to live.
The local government has been actively promoting urban living by redesigning public spaces to prioritize pedestrian mobility. This has led to a significant decrease in car usage and an increase in walking and cycling as primary modes of transportation. The improved air quality and reduced noise pollution make Pontevedra an attractive option for those seeking a healthier living environment.
Additionally, the city's transformation has attracted more residents and tourists, leading to increased foot traffic and investment in local businesses. The opening of 7% more shops and restaurants has further enhanced the community's vibrancy. Media coverage has also highlighted Pontevedra as a desirable place to live, contributing to the rising interest in urban living.
Sources: Euronews, Sanvi Mobility Consulting
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Santiago de Compostela is seeing rising property values thanks to its appeal to international buyers
The historic town of Santiago de Compostela has been experiencing a noticeable surge in property values, largely due to its growing popularity with international buyers. In 2024, the average price for residential properties in the town reached €1,862 per square meter, showing a steady increase from the previous year. This trend is further highlighted by the peak average price of €1,931 per square meter in early 2023.
One of the key factors driving this surge is the significant number of overseas buyers investing in Spanish real estate, including Santiago de Compostela. In the first half of 2024 alone, 69,412 overseas buyers purchased properties in Spain, reflecting a strong international interest. Real estate agencies, such as Indomio, have reported a high demand from international buyers, further emphasizing this trend.
Additionally, the town's popularity has been bolstered by a substantial increase in international tourism. In August 2024, Santiago de Compostela welcomed 101,524 visitors, marking a significant rise from the previous year. This influx of tourists has contributed to the town's growing appeal among expatriates, who are drawn to its rich cultural and historical heritage.
Sources: Indomio, Vialusitana, The Property Finders
4) The Rías Baixas area is booming with its wine tourism and scenic landscapes driving real estate interest
The Rías Baixas area in Galicia is buzzing with a real estate boom, thanks to its wine tourism and stunning landscapes.
In 2023 and 2024, property prices in this picturesque region started climbing, and experts predict continued growth into 2025. This surge is fueled by the area's charm as a tourist hotspot, drawing in over 2 million visitors each year, which naturally boosts the demand for homes.
In 2024, the D.O. Rías Baixas celebrated a milestone with record sales growth in the U.S., showcasing the global love for its Albariño wines. This wine success story not only brings more tourists but also lures international buyers eager to invest in local real estate. The growth of wineries and wine-related businesses adds to the allure, attracting more people to the region's unique offerings.
The local government is also stepping up, investing in tourism infrastructure with plans to modernize and expand amenities by 2025. This move aims to enhance the visitor experience and handle the increasing tourist numbers, making the area even more enticing for potential property buyers. These efforts have created a lively real estate market in Rías Baixas, where properties are snapped up quickly despite rising prices.
Social media buzz and glowing reviews in travel publications have further spotlighted the region's breathtaking landscapes and vibrant lifestyle, boosting its appeal. As a result, the Rías Baixas area continues to attract interest from both domestic and international buyers, fueling its ongoing real estate boom.
Sources: Bric Group, PRWeb, Cluster Turismo Galicia, Solidarity Tourism, At Home in Andalucia
5) Sanxenxo is booming with high rental yields fueled by summer tourism
Sanxenxo is thriving thanks to high rental yields fueled by summer tourism.
During the summer, this coastal town becomes a hotspot with exceptionally high occupancy rates. Tourists flock here, eager to enjoy the sun and sea, which means property owners see a significant boost in rental income. The demand for places to stay is so intense that even small apartments, especially those with ocean views, come with a hefty price tag.
In fact, property prices in Sanxenxo are among the highest in Galicia. This reflects the strong desire to be part of this exclusive beach resort. People are willing to pay more for the privilege of staying in such a sought-after location, making it a lucrative spot for property investors.
The local government has been smart about this boom, investing in tourism infrastructure to make Sanxenxo even more appealing. These efforts have not only enhanced the town's charm but also improved the overall experience for visitors, which in turn boosts rental yields even further.
Short-term rental platforms like Airbnb have also played a part in this success story. With more listings available, tourists have a wider range of options, which has expanded the tourism demand. This trend has been a game-changer, providing property owners with more opportunities to capitalize on the influx of visitors.
Sanxenxo's popularity is no accident; it's a combination of natural beauty, strategic investments, and the rise of short-term rentals. For anyone considering buying property here, the potential for high returns on investment is clear.
Sources: Galicia Guide, University of Oviedo, Ministry of Tourism
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6) O Grove is gaining popularity for second homes with its scenic views and renowned seafood
The coastal village of O Grove is becoming increasingly popular for second homes, and there are several reasons for this trend. One of the main factors is the rising property prices in the area, which reflect a growing demand for second homes. Although specific data for O Grove isn't available, the broader trend in Galicia shows a significant market for second homes, with about 20.4 thousand second homes purchased in the region in 2019.
Another reason for O Grove's popularity is the growing interest from international buyers. Galicia's reputation as a tourist destination, known for its seafood and scenic views, attracts buyers from other regions, such as Madrid. This interest is further supported by local government investments in infrastructure and tourism, which enhance the appeal of O Grove as a second-home destination.
Positive reviews and features in travel and lifestyle publications also play a role in attracting attention to O Grove. Articles highlighting Galicia's glorious beaches, Albariño wine, and empanadas draw attention to the region's culinary and natural attractions. Additionally, the expansion of local amenities and services, such as restaurants and hotels, supports the trend of O Grove becoming a popular second-home destination.
Sources: Statista, The London Foodie
7) The Ribeira Sacra region is attracting interest for its rural tourism potential and vineyard-related real estate investments
The Ribeira Sacra region is gaining attention for its potential in rural tourism and vineyard-related real estate investments for several reasons.
Firstly, the region has seen a rise in rural tourism accommodations and businesses, driven by local initiatives promoting its cultural and natural heritage. Events like the Amandi Wine Fair and Chantada Wine Fair attract tourists, showcasing the area's vibrant cultural scene.
Additionally, the growth in vineyard production, supported by the Ribeira Sacra Designation of Origin, highlights the region's unique climate and terraced vineyards. This has led to increased media coverage and international recognition, positioning Ribeira Sacra as an emerging wine destination.
Moreover, government incentives, such as financial aid for vineyard preservation and plans to produce high-end wines, demonstrate a strategic approach to boosting the wine industry. These efforts, combined with increased investment in tourist infrastructure, suggest a promising future for the region.
Sources: CaixaBank Research, Decanter, Ruta del Vino Ribeira Sacra, Yogi Barrington
8) Ferrol's Esteiro district is gaining interest with new infrastructure and urban renewal projects
Ferrol's Esteiro district is experiencing a revival in property interest, largely due to new infrastructure projects and urban renewal efforts. In recent years, the City of Ferrol has been actively investing in infrastructure improvements, such as enhancing public transportation links and urban amenities. Projects like the Centennial Boulevard Speed Calming in 2024 have been pivotal in improving traffic flow and safety, making the area more appealing to potential residents and businesses.
Additionally, the property market in Esteiro has shown significant growth, with property prices rising sharply. In the first half of 2024, new homes in Esteiro recorded a 10.7% year-on-year increase in prices, reflecting the growing demand for properties in the area. This surge in interest is further evidenced by an 8.6% increase in property transactions, particularly among Spaniards buying primary residences.
Local news reports have also played a role in highlighting the urban development efforts in Esteiro, focusing on new commercial developments and community enhancements. These reports contribute to a positive perception of the area, attracting more interest from potential buyers and investors. Improved public transportation links, such as the Gateway Street at Kruse Way Intersection Improvements in 2023, have made the district more accessible and attractive.
Sources: CaixaBank Research, Springfield OR
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) A Coruña’s Monte Alto is gaining interest for its beach proximity and vibrant cultural scene
The Monte Alto area in A Coruña has become increasingly popular, and there are several reasons for this trend. One of the main factors is its proximity to the beach, which is a significant draw for both residents and tourists. People love being close to the ocean, and Monte Alto offers easy access to beautiful coastal views and beach activities.
Another reason for the rising demand is the vibrant cultural scene in Monte Alto. The area is known for its colorful architecture and lively cultural events, which attract a diverse crowd. This cultural richness not only enhances the quality of life for residents but also makes the area more appealing to potential homebuyers and investors.
Additionally, the increase in property prices and real estate activity in Monte Alto reflects its growing desirability. In October 2024, the average sale price in the area reached €2,507 per square meter, marking a significant increase from the previous year. This trend indicates that more people are interested in living in Monte Alto, likely due to its attractive location and amenities.
Sources: Indomio, A Coruña News, Trevor Huxham
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.