Top 5 Best Places to Invest in Property in Spain (2025)

APW Group
May 1
2 min read

Updated: May 21

Spain remains one of Europe’s hottest property investment destinations, offering sun, sea, and solid returns. Whether you're eyeing a holiday home, a retirement haven, or a savvy rental opportunity, here are the top spots to consider in 2025:

1. Valencia – The Rising Star

With beautiful beaches, a thriving food scene, and lower property prices than Barcelona or Madrid, Valencia is attracting attention. It offers a fantastic mix of urban life and Mediterranean charm, and thanks to growing tourism and expat demand, rental yields are looking strong.

Modern architecture in Valencia with white, futuristic buildings by a reflective pool. Spiky plants in the foreground; a clear, sunny sky.

2. Malaga – Culture Meets Coastline

This vibrant Andalusian city is more than just a gateway to the Costa del Sol. Malaga has become a tech hub, cultural hotspot, and lifestyle destination. Think Picasso, palm trees, and year-round sunshine — all backed by a buoyant rental market.

Malaga cityscape with a historic cathedral tower against a backdrop of modern buildings. A large "TEZENIS" ad is visible. Overcast sky, muted colors.

3. Alicante – Budget-Friendly Beach Living

Popular with retirees and second-home buyers, Alicante offers excellent value for money. It’s well-connected, laid-back, and perfect for long-term living or vacation lets. Plus, with steady tourism, it delivers dependable income.

Aerial view of Malaga with high-rise buildings, sandy beaches, and blue waters. Mountains and sprawling residential areas are visible.

4. Madrid – Stable and Sophisticated

If you're after capital growth and a cosmopolitan vibe, Madrid should be on your radar. Spain’s capital offers strong long-term potential, especially in up-and-coming neighborhoods like Lavapiés and Tetuán. Expect higher prices — but also higher returns.

5. Mallorca – Island Luxury with Global Appeal

For those with more to invest, Mallorca combines stunning natural beauty with an exclusive property market. High-end villas, rustic fincas, and chic apartments in Palma can all yield excellent returns, particularly through short-term holiday rentals.

Mallorca village with terraced gardens overlooks a vast blue sea. Rustic buildings, lush greenery, and a mountain backdrop create a serene scene.

Want to learn more about property investment?

Before diving in, it's wise to consult a property expert, understand Spain's tax implications, and consider the differences between resident and non-resident ownership. A little research goes a long way!

If you want to explore investment properties in Spain , we can help you. APW Group was founded by expats, for expats; building upon over 30 years of experience in property and fixed income investments.

Our team brings a wealth of experience in the global property market, guiding you through everything from discovering the perfect home to securing visas and navigating local laws with confidence. We have helped over 6,000 expats progress their property portfolio in cities all over the world.

Looking for your entry point into the Spanish market? Get in touch today.