« A rental investor has money, but not necessarily 200 hours to dedicate to their project. Terreta Spain comes to save their weekends… » Geoffroy Reiser.
Why Spain is attracting more and more French real estate investors
We have just been invited to Matthieu Stefani's microphone in La Martingale, THE reference podcast for investors, to answer a frequently asked question: should you invest in real estate in Spain or not?
During this conversation, we were able to discuss the levers, risks and realities of the Spanish real estate market, share our field experience and our concrete advice for investors.
A market still undervalued... but for how long?
"The real estate market in France is not burnt out. However, there are very strong advantages to diversifying your portfolio, and the current geopolitical context favors Spain," Geoffroy Reiser.
In terms of investment, Spain is clearly a reservoir of opportunities in 2025.
The country is in a good overall dynamic thanks to:
- Solid economic growth (+3% in 2024), among the best in the Eurozone.
- A rising population due to immigration (from European countries like Ukraine since the war, South Americans, and others).
- Particularly strong rental demand in major cities like Valencia or Madrid (tourism, students, digital nomads, etc.).
This macroeconomic picture is highly favorable for long-term investment strategies.
Furthermore, unlike France, for example, where prices, returns, and taxation are becoming strained, Spain retains several advantages:
- Very accessible prices per m²: €2391/m² on average (Idealista, June 2025).
- Often more advantageous taxation.
- Interest rates 1% lower than French rates (we have recently seen rates below 2%), and a rise in fixed rates, which were rare before the 2008 crisis.
- Average returns of 6-7%, sometimes more.
"The Spanish real estate market saw a 5% price increase last year, which is counter-cyclical. We are even seeing more than 10% annual increases in Valencia over the last 2, 3, or 4 years," Geoffroy Reiser.
On the other side of the Pyrenees, certain cities are standing out:
- Valencia: double-digit demographic growth, profitability around 6%, entry ticket between €150,000 and €200,000. Read our article on Valencia.
- Gandia: seaside resort 1 hour south of Valencia, prices around €1,200 to €1,300/m², sometimes less, strong seasonal demand. Read our guide on Gandia.
- Málaga: the new Andalusian pearl, super dynamic, but more expensive to buy. See our analysis of Malaga.
Madrid and Barcelona are, of course, two cities with very stable potential, but: the price per square meter is high (€5,000 – €6,000), the returns are lower, and Airbnb-type rentals, which allowed for attractive returns, are in turmoil. Faced with the housing crisis in Spain, regulations are accumulating, and license grants have been frozen.
NEVER base your investment project in Spain solely on tourism.
How to finance a real estate project in Spain?
"Note that you cannot buy in Spain without a down payment of at least 50,000 euros. That's the only limit to the exercise," Geoffroy Reiser.
Why such a down payment?
Because Spanish banks only lend foreign investors 60-70% of the property price. If we add the purchase costs (12-13%) and any renovation work, these loans may be insufficient.
Non-resident investors therefore have a choice of 4 options:
- Assets in France that they can leverage as collateral (mortgage or pledge) and benefit from a French loan.
- A significant down payment and a good profile to approach a Spanish bank.
- A mix between a French bank loan and a Spanish mortgage.
- A Spanish loan + a personal loan in France. It's quick and easily repaid once the apartment is rented out.
Why Terreta Spain?
Our offer: all-inclusive or à la carte
We founded Terreta Spain to address a simple problem: How to secure a real estate purchase in Spain when you don't master the language, local regulations, or the market? And how to find a profitable gem without spending 200 hours on it (really).
Our team coaches and supports you from start to finish, with a turnkey approach.
- Property selection,
- Technical audits,
- Coordination of works,
- Legal and tax formalities,
- Rental and property management.
Big plus: Terreta Spain can put you in touch with the only Spanish bank dedicated exclusively to foreign buyers. Talk to our experts.
Our model is based on a single team, by your side throughout the project, with complete transparency at every stage.
The Terreta Spain vision: a long-term vision, designed by and for investors
At Terreta, we are all "serial investors". So we've been there ourselves.
We also know that investing isn't (just) buying a property remotely. It's building a solid wealth strategy that combines profitability, geographical diversification, and sometimes a medium-term life project.
In our opinion, there is still time to invest in Spain, but it requires method, rigor, and support.
This is what we shared in La Martingale, and it's what we do every day for our clients.
Shall we take action?
From Valencia, our team supports foreign investors in their projects every month. Discover their success stories here.
Do you have a question, a project, or simply want to explore the opportunities? Contact us or download our complete brochure on terretaspain.com
And to go further, consult our real estate purchase guide in Spain.
