« 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.
FAQ — Investing in Spain: Real Estate Strategy
Why is Spain attracting more and more real estate investors?
Spain attracts many foreign investors thanks to still-affordable real estate prices in several cities, strong rental demand, and significant economic and tourist appeal.
Is real estate in Spain still a good investment opportunity?
Yes. In many regions, prices remain lower than those in many major European cities, making it possible to invest on a more reasonable budget while still aiming for attractive rental returns.
What kind of return can you expect from a real estate investment in Spain?
Rental profitability depends on the city, the type of property, and the management strategy. In some cities, gross rental yields can exceed those seen in many Western European real estate markets.
Are real estate prices in Spain still affordable?
Yes. In many cities, prices remain lower than in major European capitals, which means you can buy a more spacious home or one in a better location for the same budget.
Is the Spanish real estate market growing?
In several regions, real estate prices have risen in recent years, driven by domestic and international demand.
Why is there strong demand for rental properties in Spain?
Rental demand is driven by several factors: population growth in certain cities, the influx of expatriates, the presence of international students, and tourism.
Which Spanish cities are attractive for investment?
Cities such as Madrid, Barcelona, Valencia, Málaga, and Alicante attract many investors due to their economic vitality and international appeal.
Is Valencia a good place to invest in real estate?
Valencia is often considered an attractive city for investment thanks to its quality of life, its economic vitality, and its still relatively affordable real estate prices.
Is it still possible to find affordable real estate in Spain?
Yes. In some cities or regions, it is still possible to find properties at prices significantly lower than those found in major European capitals.
Should you focus on vacation rentals when investing in Spain?
Vacation rentals can be a profitable business, but they are subject to specific regulations that may vary by city and region.
Is it possible to get a mortgage in Spain for investment purposes?
Yes. Spanish banks can provide financing to foreign investors, but they generally require a significant down payment.
How much of a down payment is required to invest in real estate in Spain?
Banks often finance between 60% and 70% of the property’s purchase price for foreign investors, which means that a down payment is required to complete the financing and cover closing costs.
Can you combine multiple sources of funding for an investment?
Yes. Some investors combine a bank loan, personal funds, or financing from their country of residence.
Why diversify your real estate portfolio in Spain?
Investing in another country allows you to diversify your assets and avoid relying solely on the real estate market in your country of residence.
What are the main risks of investing in real estate in Spain?
As with any real estate investment, there are risks associated with market fluctuations, changes in regulations, or poor property selection.
Why should you seek professional guidance when investing in real estate in Spain?
Working with professionals helps you better understand the local market, ensure that legal due diligence is properly conducted, and streamline administrative procedures.
What does a turnkey real estate investment entail?
A turnkey investment involves entrusting the entire project to professionals who handle the property search, purchase, any necessary renovations, and the process of renting it out.
Can investing in real estate in Spain be a wealth-building strategy?
Yes. Real estate can help generate rental income, build wealth, and diversify your investments over the long term.
Is Spain attracting more and more foreign investors?
Yes. Spain attracts many international investors because of its economic appeal, its climate, and the quality of life it offers.
