"A rental investor has money, but not necessarily 200 hours to devote to his project. Terreta Spain comes to save his weekends..." Geoffroy Reiser.
Why Spain is attracting more and more French property investors
We've just been invited by Matthieu Stefani on La Martingale, THE reference podcast for investors, to answer a frequently asked question: should you or shouldn't you invest in real estate in Spain?
In the course of this conversation, we discussed the levers, risks and realities of the Spanish real estate market, and shared our feedback from the field and concrete advice for investors.
A still undervalued market... but for how long?
"The real estate market in France is not burnt out. On the other hand, there are very strong advantages to diversifying your portfolio, and the current geopolitical context works in Spain's favor." Geoffroy Reiser.
In terms of investment, by 2025 Spain is clearly a reservoir of opportunities.
The country is in a good gobal dynamic thanks to :
- Solid economic growth (+3% in 2024), among the best in the Eurozone.
- A growing population thanks to immigration (from European countries like Ukraine since the war, South Americans and others).
- Rental demand is particularly strong in large cities like Valencia and Madrid (tourism, students, digital nomads, etc.).
This macroeconomic picture is highly favorable to long-term investment strategies.
What's more, unlike France, for example, where prices, yields and taxation are under pressure, Spain still has a number of advantages:
- Very affordable prices per m² : €2,391/m² on average (Idealista, June 2025).
- Often more advantageous tax treatment.
- Interest rates 1% lower than French rates (we've recently seen rates below 2%), and a rise in fixed rates, which were rare before the 2008 crisis.
- Returns averaging 6-7%, sometimes higher.
"The Spanish real estate market saw a 5% rise in prices last year, which is counter-cyclical. We've even seen more than 10% annual price rises in Valencia over the last 2, 3, 4 years." Geoffroy Reiser.
On the other side of the Pyrenees, some cities are doing very well indeed:
- Valence: double-digit population growth, profitability around 6%, entry ticket between €150,000 and €200,000. Read our article on Valence.
- Gandía: seaside resort 1 hour south of Valencia, prices around €1,200 to €1,300/m², sometimes less, high seasonal demand. Read our guide to Gandía.
- 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: square meters are expensive (€5,000 - €6,000), returns are lower and Airbnb-type rentals, which used to offer attractive returns, are in turmoil. Faced with Spain's housing crisis, regulations are piling up and licensing has been frozen.
NEVER base your investment project in Spain solely on tourism.
How to finance a property project in Spain?
"Be careful, you can't buy in Spain without a deposit of at least 50,000 euros. That's the only limit to the exercise." Geoffroy Reiser.
Why such a large contribution?
Because Spanish banks only lend foreign investors 60-70% of the property price. If you add the purchase costs (12-13%) and any work required, these loans may not be enough.
Non-resident investors can therefore choose between 4 options:
- An asset in France that they can use as collateral (mortgage or pledge) and benefit from French credit.
- A large capital contribution and a good profile to turn to a Spanish bank.
- A mix between a French bank loan and a Spanish mortgage.
- A Spanish loan + a consumer credit in France. It's quick and easy to repay once the apartment is rented.
Why Terreta Spain?
Our offer: all inclusive or à la carte
We founded Terreta Spain in response to a simple problem: how do you secure a property purchase in Spain when you don't know the language, the local rules or the market? And how to find a profitable nugget without spending 200 hours on it (really).
Our team will coach and support you from start to finish, with a turnkey approach.
- Property selection,
- Technical audits,
- Coordination of work,
- Legal and tax formalities,
- Lettings and rental management.
A 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, at your side throughout the project, with total transparency at every stage.
The Terreta Spain vision: a long-term vision by and for investors
At Terreta, we're all "serial investors". So we've been there ourselves.
We also know that investing is not (just) buying a property from a distance. It's about building a solid asset strategy, combining profitability, geographical diversification and sometimes a medium-term life project.
In our opinion, there's still time to invest in Spain, but it requires method, rigor and support.
That's what we shared in La Martingale, and that's what we do every day for our customers.
Shall we get down to business?
Every month, our team in Valencia assists foreign investors with their projects. Discover their success stories here.
Do you have a question, a project, or simply want to explore opportunities? Contact us or download our full brochure on terretaspain.com
And to find out more, take a look at our guide to buying property in Spain.
