Territorial and regulatory diversification is driving a new era of real estate investment in Spain, and at aProperties Real Estate, we analyze the rise of new investment capitals and the influence of recent regulatory measures on sector strategies.
Madrid and Barcelona remain the traditional hubs of the Spanish real estate market, but cities like Valencia, Malaga, and Seville are experiencing strong growth as new investment capitals. According to recent studies, these cities offer significantly attractive gross returns: Valencia (≈6.3%), Malaga (≈6.47%), and Seville (≈6.5%). Murcia even leads the way with a return of 8.1%, although it was not part of the original focus.
This trend reflects a clear strategy: to seek out cities with high growth potential, quality of life, and lower price pressure than large cities, without losing attractive profitability.
Recent Regulations Reshaping the Market
The regulatory framework has also undergone decisive changes that directly influence investment decisions:
- Declaration of the End of the "Golden Visa": As of April 3, 2025, Spain will no longer issue residence visas for real estate investments exceeding €500,000. Between 2013 and 2023, more than 14,500 visas were granted, mostly to Chinese and Russian investors.
- Control over Tourist Apartments: As of January 2025, the new Efficiency Law requires prior authorization from residents to use a home as a tourist apartment, requiring the support of 60% of the owners and contributions.
- Single Registry for Short-Term Rentals: As of January 2, 2025, short-term rentals must have a single registry assigned and be verified by platforms such as Airbnb. This system, with an investment of €1.2 million, seeks to curb illegal supply and promote transparency.
- These measures come amid strong market pressure: in 2024, housing prices rose 8.4%, while rents rose 14%—the largest increases in recent years.
Foreign Capital in the Sector
International interest continues to be a fundamental pillar of the sector: nearly €16 billion is invested in the top 20 listed real estate companies in Spain, and more than 55% of their market value is owned by foreign capital.
This new scenario, marked by geographic diversification and progressive regulation, poses both challenges and opportunities for investors with a long-term vision.
Key factors for taking advantage of this moment include:
- Identifying emerging neighborhoods in cities like Valencia, Malaga, or Seville, where appreciation in value is real and profitability is high.
- Quickly adapt to the regulatory framework: understand and effectively manage the new ecosystem of tourist apartments and golden visas.
- Rely on modern financing tools and the specialized advice of expert real estate agencies, such as aProperties Real Estate.
At aProperties Real Estate, we believe this is the ideal time to explore new real estate investment opportunities in Spain. If you want to delve deeper into market trends, discover exclusive projects, or receive personalized advice, we invite you to visit our website and take the first step toward your next great investment.