Properties with investment potential – how to identify future ‘hot’ locations in Spain

Where to buy investment apartments? Spain is a popular choice among people looking for a safe way to invest their capital. Find out how to find the best locations and take advantage of the potential for property value growth.

It is not without reason that investing in real estate in Spain is a popular way to invest capital. The market there is characterised by consistently high demand, stability and attractive rates of return. However, in order to maximise returns, it is necessary to choose not only the right apartment or house, but also the right location. This guide will tell you where to buy an investment property in Spain.

It is not without reason that investing in real estate in Spain is a popular way to invest capital. The market there is characterised by consistently high demand, stability and attractive rates of return. However, in order to maximise returns, it is necessary to choose not only the right apartment or house, but also the right location. This guide will tell you where to buy an investment property in Spain.

It is not without reason that investing in real estate in Spain is a popular way to invest capital. The market there is characterised by consistently high demand, stability and attractive rates of return. However, in order to maximise returns, it is necessary to choose not only the right apartment or house, but also the right location. This guide will tell you where to buy an investment property in Spain.

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The luxury real estate market in Spain is booming, and forecasts predict continued price growth. In 2025, it may reach around 3-4%. What is more, even in the face of global economic challenges, the market there shows unwavering stability. This mainly applies to the premium segment, with particular emphasis on popular coastal areas such as the Costa Blanca and Costa del Sol.

Therefore, investing in real estate in Spain, especially luxury properties, is not only popular but also a safe way to invest capital. This gives investors the following benefits:

• protection of savings against inflation,
• potential for property value growth (especially in tourist regions),
• prestige,
• an exclusive lifestyle in a Mediterranean climate,
• and a sense of security.

What is the reason for the stability and high level of financial security offered by luxury investment apartments? Spain attracts thousands of foreign investors every year. In 2024, the number of properties purchased exclusively by Poles exceeded 4,000. In addition, the demand for premium properties on the Iberian Peninsula continues to grow, while supply in the most desirable locations remains limited.

Read also: Buying an apartment in Spain for rent. What do you need to know?

Where to buy an investment property in Spain? One of the most important factors to consider is location, or more specifically, planned infrastructure investments that may increase property values in the future. These include new road connections, expansion of nearby airports, public transport and even the development of exclusive marinas. These are yacht marinas, which significantly increase the attractiveness of the region for wealthy investors.

Another factor influencing the potential for property value growth is demographic and migration trends, which shape supply and demand in a given region. In Spain, the urban population is growing steadily, as is the interest in the local market among wealthy foreigners and professionals. This, in turn, not only contributes to a steady increase in demand in exclusive locations, but also to the development of premium infrastructure.

The best investment locations in Spain are primarily tourist regions such as the Costa del Sol. Despite its popularity, the coast offers better value for money than large cities such as Madrid. At the same time, it shows great potential in terms of growing returns on property investment. Spain attracts visitors to the south with locations such as:
 

• Marbella with its prestigious marina,
• Estepona, which is considered a quieter alternative to Marbella,
• and Malaga, which delights with its diversity.
   

Another place that combines exclusivity with an authentic Spanish atmosphere is the Costa Blanca, a coastline located in central Spain. In this region, it is worth looking into investment apartments in towns such as Torrevieja, Benidorm, Alicante and Calpe.

When looking for a house or investment apartment in Spain, it is worth taking advantage of the popular strategy of purchasing property from developers at an early stage of construction. Such transactions are often more financially advantageous. Although you will have to wait for the keys to the property, an off-plan investment allows you to negotiate an attractive discount and decorate the interior exactly as you wish. Interestingly, purchasing such a property also offers the opportunity for potential value appreciation even before construction is completed.

How can you further increase your return on investment in real estate? Spain attracts millions of tourists and digital nomads every year. As a result, luxury short-term rentals are very popular among wealthy holidaymakers. This not only generates high passive income, but also allows you to use the property for part of the year.

Importantly, when you choose this solution, you do not have to be there all the time and take care of your apartment. Instead, you can entrust this task to a rental management company, which will ensure the safety of the property and the satisfaction of the tenants. It will also complete all the formalities on your behalf.

Another strategy for generating high returns on investments in Spain is to purchase properties in prestigious locations that require renovation. Modernisation can significantly increase both the standard and value of an apartment or house. Historic properties in city centres and traditional villas in coastal towns are particularly popular among wealthy investors.

When deciding to invest in real estate in Spain, it is important to consider the legal and financial aspects. One of these is how to finance the purchase of a premium property. Contrary to appearances, you do not need to have the entire amount in cash. Non-residents can apply for a mortgage or take advantage of developer financing.
 

What is more, as in Poland, in Spain it is necessary to complete tax formalities. These include:

• property purchase tax (varies depending on the type of market),
• annual property tax (a municipal fee set by the local council),
• income tax for non-residents,
• wealth tax (above EUR 700,000).
   

Read also: Taxes in Spain. How much are they?
 

After reading this article, you now know where to buy investment apartments. Spain has a lot to offer in this respect, especially if you are looking for property on the Costa Blanca and Costa del Sol. If you want the highest return on your investment and security of the transaction, use the services of Elite World Estates, which will help you find the best apartment or villa in Alicante, Marbella and more.

We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. 
We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.