It is recommended to be well informed how to buy Real Estate in Spain as investments continue to rise in 2024. If last year Latin America increased its interest in Spain by almost 200%, Golden Partners has detected in the first half of this year an even greater increase in the volume of requests from countries such as Peru, Mexico, the United States, Arab Emirates, Russia or Ukraine to invest in real estate in Spain. Specifically, through the purchase of homes for rent.
Following the latest report on Trends in the Real Estate Market in Europe 2024 prepared jointly by PwC and the Urban Land Institute, Spain was, in the 2023’s 4Q, the fourth European country in terms of transaction volume for investments in Real Estate.
Therefore, it’s more than relevant to know how to buy Real Estate in Spain, which are the cities with the highest profitability to invest. Also, how to find a trustworthy real estate agent in Spain as well as a lawyer. We tell you about it in this post.
What is Real Estate to understand how to buy Real Estate in Spain
Before knowing how to buy Real Estate in Spain, it is deeply recommended to know a bit more what this concept consists of.
Real Estate, receiving this name due to its Anglo-Saxon origin, is the set of real estate or real estate properties, both for rent and for the purchase and sale of homes and other non-residential properties. For some years now, it has included the processes of sale or rental, promotion, investment and financing of real estate projects.
Specifically, Real Estate is made up of three categories:
- Residential: encompasses the activities of purchase, sale and rental of properties intended for housing.
- Commercial: properties with non-residential purposes, i.e., premises, offices or shopping centers.
- Logistics: properties dedicated to production, i.e., factories, industries, warehouses or industrial warehouses.
How to invest in Real Estate in Spain
Investments in Real Estate in Spain are made through one of the following formulas:
Direct purchase of properties:
Buying a home to rent is the most traditional way for both Spaniards and foreign citizens when it comes to investing in Real Estate in Spain.
Real Estate investment funds in Spain:
Real Estate investment funds allow the investor to acquire shares in a professionally managed fund that invests in a diversified portfolio of properties. These are funds designed for individual investors who do not want to deal directly with property management, though none of the other formulas require this either if there is a lawyer or manager in charge of it.
Real Estate crowdfunding:
Real Estate crowdfunding has become popular by allowing investors to invest in smaller-scale properties through online platforms. Although the risk is diversified by participating in multiple projects, a greater number of investments are required to achieve better profitability.
REIT or SOCIMI:
Another possibility to undertake investments in Real Estate in Spain is through REITs (Real Estate Investment Trust), companies that invest in commercial real estate and, in exchange, distribute the profits generated among their shareholders.
Also, SOCIMIs (by its acronym in Spanish, ‘Listed Joint Stock Investment Company in the Real Estate Market’), which offer liquidity, diversification and access to large-scale real estate projects when traded on the stock market, which facilitates the purchase and sale of shares.
Properties for vacation rentals:
The rise of vacation rental platforms such as Airbnb, Wimdu, Vrbo or Holidu has favored investment in short-term vacation rental properties.
In the Spanish case, it is essential that a Real Estate lawyer analyze the local regulations where the property is located, as well as the tourist demand in the area and the maintenance and management costs to be clear about what the exact profitability will be. of the rented home.
Therefore our clients always ask themselves how to find a trustworthy Real Estate agent in Spain as well as a good lawyer and we recommend them the correct experts to take care of all the necessary procedures for the acquisition and management of their properties.
Barcelona, Madrid or Marbella, at the head of luxury Real Estate in Spain
From Golden Partners, investments in luxury Real Estate in Spain located in certain cities are becoming more frequent, given their high profitability when renting the home or property acquired.
These are towns that, either because of their capital status, as is the case of Madrid; either because of its economic relevance, like Barcelona or Girona; or due to its good climate throughout the year and with high demand for high-end tourism like Marbella or Ibiza, they have a great demand in the rental market 365 days a year.
How to find a trustworthy Real Estate agent in Spain
Finding a luxury Real Estate agent in Spain as well as a lawyer is not always easy. The Real Estate expert must know exhaustively the legal requirements and the legal system of Spain as well as the specific locality where the real estate is located, in order to make the best decision and the most appropriate one for the investment needs.
More and more national and foreign investors entrust the purchase and management of their real estate to Golden Partners to obtain high profitability through the rental of the homes acquired. We have extensive knowledge of Spanish legislation, registration and administrative practices and even languages, being able to assist you in Spanish, English or French.
Please feel free to contact us through our contact form and a Real Estate lawyer from our team will contact you.
