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Where are the best places to invest in Spain right now? Is Madrid still the top pick, or are cities like Valencia, Seville, and Bilbao 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 country. 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 Spain 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.
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1) Murcia’s La Manga del Mar Menor is in demand for its unique coastal homes and thriving holiday rental market
La Manga del Mar Menor in Murcia is a hotspot for unique coastal properties and a thriving holiday rental market.
In 2023, holiday rentals here boasted high occupancy rates, with average nightly prices starting at $30. With over 2.7K reviews, it's clear there's strong demand and interest from visitors.
Property values in La Manga have been climbing, with coastal properties reaching over €2,000 per square meter in early 2023. This marks a 6.59% increase from the previous year, underscoring the area's appeal to both investors and tourists.
The region's natural beauty and excellent amenities have attracted more international tourists, further boosting the holiday rental market. This influx makes it a lucrative opportunity for property owners.
La Manga's unique position between the Mediterranean Sea and the Mar Menor lagoon offers a distinctive coastal experience, drawing in visitors who seek both relaxation and adventure.
With its sandy beaches and vibrant local culture, La Manga continues to be a magnet for holidaymakers, ensuring a steady stream of rental income for property owners.
Sources: Airbnb, Micasamo Realty
2) Alicante’s Playa de San Juan is in demand for its beachfront homes and tourist rentals
Playa de San Juan in Alicante is a hotspot for beachfront properties, attracting tourists with high rental demand.
In the summer of 2024, vacation rentals in this area saw impressive occupancy rates. For instance, in July, the average occupancy rate was 86.5%, and it jumped to 92.6% in August. During a long bank holiday weekend, it nearly hit 96%, showing just how popular this destination is among visitors.
Every year, over 3 million tourists flock to Alicante Province, and Playa de San Juan is a major draw for them. This influx of visitors means there's a constant demand for rental properties, making it a prime spot for real estate investment.
The natural beauty of Playa de San Juan, with its white sandy beaches and crystal-clear waters, is a big attraction. Tourists love staying here, and their positive reviews and high ratings on travel platforms reflect this preference for beachfront accommodations.
Investors are keen on this area because of its strong rental market. The combination of stunning scenery and high tourist numbers makes it a lucrative choice for those looking to invest in property.
Sources: Euroweekly News, Dataestur, Happylife, Audiala, Spanish Town Guides
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Valencia’s Ruzafa is booming for its trendy vibe and strong short-term rental demand
Ruzafa in Valencia is buzzing with energy, drawing in both locals and tourists.
Property prices here have jumped by 6.7% year-on-year in 2024, showing just how popular the area has become. This surge is largely due to the neighborhood's trendy vibe, which is fueled by a wave of new businesses and cafes. These spots are not just hangouts; they are cultural hubs that make Ruzafa a lively place to be.
Travel blogs and guides are raving about Ruzafa, highlighting its cultural attractions and exciting nightlife. This buzz is not just talk; it's drawing more people to the area, both to visit and to live. The neighborhood's charm is infectious, making it a must-see for anyone coming to Valencia.
Short-term rentals are booming here, with occupancy rates hitting around 70% annually. During peak seasons, these rates can soar past 85%, thanks to platforms like Airbnb making it easy for tourists to find a place to stay. This has turned Ruzafa into a hot spot for rental investments.
For those looking to invest, Ruzafa offers a unique opportunity. The neighborhood's increasing demand for short-term rentals is a clear indicator of its potential. With its trendy vibe and growing popularity, it's no wonder property values are on the rise.
Whether you're looking to buy a home or invest in a rental property, Ruzafa's booming market and cultural appeal make it a top choice. The neighborhood's transformation into a vibrant community is a testament to its allure.
Sources: Revalencia, Dream Properties Valencia, Euro Weekly News
Our team found this video where Ruzafa's vibrant atmosphere and popularity for accommodations are discussed, emphasizing its demand for short-term rentals and appeal to both tourists and locals.
4) Seville’s Triana district is gaining interest for its cultural charm and rising property values
Seville's Triana district is becoming a favorite among investors for its rising property values and cultural allure.
In 2024, property prices in Triana averaged €3,278 per square meter, reflecting a notable 15.30% increase from the previous year. This surge indicates that Triana is a prime location for real estate growth, attracting those looking to capitalize on its upward trend.
Tourism significantly influences this boom, as Triana, akin to Seville's historic center, is a hotspot for short-term rentals. Despite regulations trying to cap these rentals at 10% of total housing, the demand persists, with 5,000 to 7,000 holiday rentals still operating illegally in Seville. This ongoing demand underscores the district's appeal to both tourists and investors.
Triana's cultural charm is another major attraction. Known for its historic architecture and lively cultural events, the district frequently appears in media and social media, enhancing its allure. This cultural vibrancy, paired with increasing property values, has piqued the interest of investors, according to real estate agents.
Investors are drawn to Triana not just for its financial prospects but also for its unique cultural offerings. The district's rich history and vibrant community events make it a desirable location, further boosting its real estate market.
With its blend of cultural richness and financial potential, Triana stands out as a compelling choice for property investment in Seville. The district's ability to attract both tourists and investors highlights its unique position in the real estate market.
Sources: Indomio Real Estate Market Data, Seville Cracks Down On Airbnb Rentals For Tourists, Water Supply Set to Be Cut to Illegal Rentals in Seville
5) Bilbao’s Abando district is thriving with its central location and strong rental yields
Abando in Bilbao is a prime spot for property investment thanks to its central location and strong rental yields.
In recent years, property prices in Abando have been on the rise, with an 8.7% annual increase in 2023 and 2024. This upward trend is expected to continue, though at a slower rate, with a projected 3% growth in 2025.
Investors are drawn to Abando for its high rental yields. In 2024, the district boasted a gross rental yield of 6.2%, making it a lucrative choice. While some areas like Rekalde offer higher yields, Abando's central location and amenities keep demand strong.
Abando's appeal is not just about numbers; it's the heart of Bilbao's economy. The district is home to major business headquarters and commercial centers, which fuels demand for rental properties. This economic activity, coupled with Bilbao's growing tourism scene, driven by its unique architecture and gastronomy, makes Abando a hot spot.
Tourists flock to Bilbao for its stunning architecture and delicious food, further boosting the rental market in Abando. The district's centrality means everything is within reach, from cultural landmarks to vibrant dining scenes.
Sources: HOMETY, SGM Abogados, Airbtics
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6) Zaragoza’s Delicias area is a hotspot for its affordable prices and expanding rental market
Delicias in Zaragoza is catching eyes in the real estate world for its affordability and potential.
Imagine snagging a property in Delicias for about €1,815 per square meter. That's a steal compared to the Centro area, where prices soar to €2,306 per square meter. This price difference makes Delicias a magnet for those hunting for budget-friendly homes.
But it's not just about buying; renting in Delicias is a smart move too. The average rent here is €9.54 per square meter. It's a sweet spot, more affordable than Universidad's €11.38 but pricier than Barrios Rurales' €7.73. This balance is why both renters and investors are eyeing Delicias for solid rental returns.
What's more, Delicias is buzzing with urban development. A new railway station and better accessibility are in the works, making life easier for residents. These upgrades are likely to boost property values as the area becomes more convenient and connected.
Locals know that Delicias is transforming, and these changes are drawing in more people. The area's charm is growing, and with it, the potential for property appreciation.
For those in the know, Delicias is not just a place to live; it's a smart investment. The combination of affordable prices, a thriving rental market, and ongoing development makes it a prime spot for real estate.
Sources: Indomio, OpenEdition Journals, CaixaBank Research
7) Tarragona's Costa Dorada is attracting investors with affordable beachfront properties and tourism-driven growth potential
Tarragona's Costa Dorada is drawing investors with its affordable beachfront properties and potential for tourism-driven growth.
Imagine owning a beachfront home without breaking the bank. While places like Costa del Sol have homes priced between $500,000 to $2 million, Tarragona offers new apartments for around €270,000. This affordability is a big draw for those looking to invest in coastal properties.
Property values in Tarragona are on the rise. Over the past year, there's been an 8.29% increase in the average price per square meter. This steady growth suggests that investing here could be a smart move for future returns.
Tourism is booming in the region, adding another layer of appeal for investors. In 2023, the province of Girona, which includes Costa Dorada, experienced a 4.44% increase in tourist numbers. This uptick not only boosts the local economy but also enhances the potential for tourism-driven investments.
With more tourists flocking to the area, the demand for rental properties is likely to rise. This means that buying property now could lead to lucrative rental opportunities, especially during peak tourist seasons.
Investors are taking note of these trends, seeing Tarragona as a place where they can get more value for their money. The combination of affordable prices and a growing tourism sector makes it a compelling choice for those looking to invest in real estate.
Sources: Spain Real Estate, Costa Brava Press Release, Indomio
8) Granada’s AlbaicĂn is drawing interest for its historic charm and property appreciation potential
Granada's AlbaicĂn neighborhood is turning heads for its historic charm and potential for property appreciation.
In 2023 and 2024, property prices in AlbaicĂn saw a steady increase, with a notable rise of 3.33% from October 2023 to October 2024. This trend shows a growing interest in the area, making it an attractive option for property investment. The neighborhood's appeal is further enhanced by its vibrant expatriate community, which makes up 25% of Granada's population.
This diverse community is drawn to AlbaicĂn's rich history and cultural events, creating a lively social hub that attracts international buyers. The area's designation as a UNESCO World Heritage site also adds to its allure, highlighting its cultural and historical significance. Moreover, the thriving tourism industry in Granada boosts the short-term rental potential in AlbaicĂn.
The neighborhood's cultural and historical significance makes it a prime location for tourists, offering entrepreneurial opportunities for expats and locals alike. This combination of factors contributes to the growing attention and potential for property appreciation in AlbaicĂn. The neighborhood's narrow, winding streets and traditional whitewashed houses offer a unique living experience that is hard to find elsewhere.
AlbaicĂn's strategic location, overlooking the Alhambra, provides stunning views that are a major draw for both tourists and potential homeowners. The local government has also been investing in infrastructure improvements, making the area more accessible and appealing. This investment is likely to further boost property values in the coming years.
With its mix of history, culture, and modern amenities, AlbaicĂn is becoming a hotspot for those looking to invest in a property that offers both charm and potential for growth. The neighborhood's unique blend of old-world charm and modern conveniences makes it a standout choice for property buyers.
Sources: Indomio, Moving Countries Guide, At Home in Andalucia
In this video, Granada's AlbaicĂn is showcased as a UNESCO World Heritage Site with traditional Andalusian architecture and Moorish influences, highlighting its historic charm and property appreciation potential.
9) Pamplona’s Iturrama is popular for its closeness to universities and high student rental returns
Iturrama in Pamplona is a hot spot for students because it's so close to the University of Navarra.
With 12,054 students enrolled in 2023, the university creates a big demand for nearby places to live. This makes Iturrama a prime area for those looking to invest in property, especially for student rentals. The neighborhood is buzzing with life, thanks to the constant influx of students who need housing.
Globally, the student accommodation market is on the rise, valued at USD 11.34 billion in 2023. This growth is expected to continue, with a projected increase of 5.1% from 2024 to 2030. For Iturrama, this means high rental yields are likely, as students are always on the lookout for convenient and comfortable living spaces.
Every year, the University of Navarra welcomes hundreds of exchange students, adding to the housing demand in Iturrama. These students often seek quality housing that offers both flexibility and independence, which is why the private rental market is expected to grow by 6.1% from 2024 to 2030.
Investors eyeing Iturrama can expect a steady stream of tenants, thanks to the university's reputation and the neighborhood's appeal. The area is not just about proximity; it's about the vibrant student life that makes it a desirable place to live.
For those considering buying property here, the combination of a strong student presence and the ongoing growth in the student accommodation market makes Iturrama a smart choice. The neighborhood's popularity is set to continue, driven by the university's draw and the lifestyle it offers.
Sources: Wikipedia, Grand View Research, University of Navarra
10) Valladolid’s Parquesol district is gaining attention for its modern developments and family-friendly atmosphere
Parquesol in Valladolid is catching eyes for its modern developments and family-friendly vibe.
Even though property prices dipped a bit in 2024 compared to 2023, they still show a steady demand for homes in Parquesol. This is a good sign for potential buyers looking for a stable investment.
When you look at the whole of Valladolid, property prices hit their peak in 2024, but Parquesol's prices suggest higher demand than other districts. This often means more people are buying homes here, even if we don't have exact numbers.
Families are flocking to Parquesol, likely because of its modern amenities and developments. The area seems to be a magnet for new residents, as seen in the stable rental rates and rising property prices.
Parquesol's appeal is not just about the homes; it's about the lifestyle. The district offers a family-friendly environment that makes it a top choice for those looking to settle down.
With its modern infrastructure and welcoming community, Parquesol is becoming a hotspot for families in Valladolid. It's a place where people want to live, not just invest.
11) Málaga’s Soho area is booming with rising property prices and its transformation into an artsy, vibrant community
The Soho area in Málaga is buzzing with excitement as property prices are on the rise thanks to its artsy transformation.
In recent years, the Málaga Arte Urbano Soho (MAUS) project has been a game-changer, turning this once-overlooked neighborhood into a lively cultural hotspot. Artistic events and exhibitions have become regular features, drawing crowds and breathing new life into the area. The project has also hosted music concerts, making Soho a go-to destination for both locals and tourists.
Adding to the cultural vibe, new galleries and creative spaces have popped up, with the Contemporary Art Center (CAC) Málaga leading the charge. The reopening of the Teatro Soho Caixa Bank, which features popular shows like “The Chorus Line” starring Antonio Banderas, has further boosted the district's allure. These developments have caught the eye of real estate investors, eager to tap into the area's growing appeal.
The media has taken notice too, often spotlighting the Soho Arts District as a shining example of urban regeneration. The transformation of the Ensanche Heredia neighborhood into a bustling cultural hub has been a key focus. This media attention has piqued the interest of international buyers, especially those who are drawn to the Mediterranean lifestyle.
With its vibrant arts scene and cultural attractions, Soho has become a magnet for art lovers and investors alike. The district's evolution has made it a prime location for those seeking a unique blend of culture and community. As a result, property prices continue to climb, reflecting the area's newfound status as a cultural gem.
Sources: Idealista, Málaga Adventures, Energy Cities
We believe this video demonstrates Málaga's Soho transformation into a vibrant artsy community, showcasing its growing appeal and rising property prices for investors.
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.