Spain’s Last Profitable Housing Markets in 2025: Where Property Investment Still Makes Sense
Spain’s housing market in 2025: fewer bargains, but real opportunities remain
The Spanish real estate market enters 2025 in a paradoxical situation. Property prices continue to rise in major cities and coastal hotspots, mortgage conditions remain tight despite gradual interest rate easing, and demand from both domestic and international buyers shows no signs of slowing. For many investors, this combination raises a critical question: does investing in housing in Spain still make sense in 2025?
The short answer is yes — but not everywhere.
While Madrid, Barcelona, and prime coastal areas have become increasingly expensive, several regions across Spain still offer attractive returns, combining reasonable purchase prices, solid rental demand, and long-term growth potential. These areas tend to share three key characteristics: lower entry costs, stable local economies, and growing demand for rental housing driven by tourism, remote work, or demographic shifts.
Below are the Spanish regions where investing in property in 2025 still offers compelling value.
Valencia and its metropolitan area: balanced growth and strong demand
Valencia continues to stand out as one of Spain’s most attractive real estate markets. Prices have risen in recent years, but they remain well below Madrid and Barcelona, while rental demand keeps increasing.
The city benefits from a diversified economy, a strong university population, and growing appeal among international buyers and digital nomads. Neighborhoods outside the historic center — particularly in surrounding municipalities — still offer yields between 5% and 7%, especially in long-term rentals.
Investors are drawn to Valencia for its balance: moderate prices, solid tenant demand, and lower regulatory pressure compared to other major cities.
Andalusia beyond the hotspots: inland cities gain momentum
While Marbella, Málaga city center, and parts of the Costa del Sol have become increasingly expensive, inland Andalusian cities are emerging as smart alternatives.
Cities such as Córdoba, Jaén, Granada (outside the most tourist-saturated zones), and Almería offer significantly lower acquisition costs while maintaining strong rental markets. Student housing, long-term rentals for local workers, and mid-term rentals are particularly profitable segments.
With average purchase prices still accessible, gross rental yields often exceed 6%, making these cities attractive for investors focused on cash flow rather than speculation.
Murcia: affordability meets rental profitability
Murcia remains one of Spain’s most affordable regions for housing investment in 2025. Property prices are among the lowest in the country, yet rental demand continues to grow due to population stability, universities, and agricultural and logistics employment.
The coastal areas also benefit from seasonal tourism without the extreme price inflation seen in other Mediterranean regions. For investors with smaller budgets, Murcia offers a low barrier to entry and some of the highest rental returns nationwide, often above 7% in well-located properties.
Castilla-La Mancha: the Madrid spillover effect
As housing prices in Madrid push buyers and renters outward, nearby regions are benefiting. Castilla-La Mancha, particularly cities like Toledo, Guadalajara, and Talavera de la Reina, has seen increased demand from commuters and remote workers seeking more affordable living options.
Property prices remain relatively low, but proximity to Madrid provides long-term stability and appreciation potential. Rental demand is steady, especially for family housing, and yields are competitive compared to national averages.
Northern Spain: overlooked but resilient markets
Regions such as Asturias, Cantabria, and parts of Galicia are gaining attention in 2025. Traditionally overlooked by international investors, these areas offer stable local demand, lower volatility, and improving infrastructure.
Cities like Gijón, Oviedo, Santander, and A Coruña combine quality of life with moderate prices. While rental yields may be slightly lower than in southern regions, investors benefit from reduced competition and long-term demographic resilience.
Secondary cities in Catalonia and the Basque Country
Although Barcelona and Bilbao are expensive, secondary cities within these regions still present opportunities. Tarragona, Lleida, Girona, Vitoria-Gasteiz, and smaller industrial hubs offer solid employment bases and consistent rental demand.
These markets are particularly attractive for long-term, conservative investors seeking stability rather than rapid appreciation.
What makes an investment still “worth it” in 2025?
In today’s market, successful property investment in Spain depends less on location prestige and more on fundamentals:
- Rental yield over speculation
- Affordability relative to local incomes
- Sustained rental demand
- Regulatory clarity and stability
- Good transport and infrastructure links
Investors focusing on mid-sized cities, commuter zones, and diversified local economies are far better positioned than those chasing saturated tourist hotspots.
A market that rewards strategy, not hype
In 2025, Spain’s real estate market no longer offers easy wins, but it still rewards informed and strategic investors. The key lies in identifying regions where prices have not yet fully reflected underlying demand and where rental markets remain strong.
For investors willing to look beyond the obvious destinations, Spain still offers some of Europe’s most compelling property opportunities — provided expectations are realistic and decisions are data-driven.
NextGenInvest is an independent publication covering global markets, artificial intelligence, and emerging investment trends. Our goal is to provide context, analysis, and clarity for readers navigating an increasingly complex financial world.
By Juanma Mora
Financial & Tech Analyst
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