Crucially, as the landscape evolves, astute investors must embrace adaptability. For those looking to invest and offer short term rentals the focus must be on locations that balance income potential, average daily rate, occupancy rate, seasonality, property type, and competition.
In this piece we aim to empower international property buyers with some key tips on how to approach and navigate the Spanish property market successfully.
Step one: Visit the Spanish investment hotspots
Spain's property market appeal spans a diverse range of locales. More Brits live in and around Torrevieja, than anywhere else in Spain, with its allure lying in its vibrant expat community, affordability, combined with plenty of home comforts.
Meanwhile, the towns of Calpe and Javea offer sought-after villa accommodation, making them ideal havens for those seeking a sun-soaked second home as an investment. La Marina and Villamartin are worth considering too with good rental opportunities for golf lovers.
In terms of regions, Valencia and Andalucia stand out for consistently providing value for money, helping to make them popular locations for investors. The following list gives a snapshot of the most-viewed areas and regions on Kyero in 2023:
Top 10 most popular towns/cities in Spain by views (Kyero 2023):
1. Torrevieja, Alicante
2. Calpe, Alicante
3. Javea, Alicante
4. La Marina, Alicante
5. Villamartin, Alicante
6. Torrox, Málaga
7. Nerja, Málaga
8. Ciudad Quesada, Alicante
9. Denia, Alicante
10. Estepona, Málaga
Top 5 most popular regions by views (Kyero 2023):
3. Canary Islands
5. Balearic Islands
The southern Spanish city of Malaga has undergone a remarkable renaissance over the last decade, transforming itself into a business hot spot and a start-up hub for digital nomads. The Malaga TechPark houses world-leading tech brands such as Oracle, PWC and TDK and there is plenty of culture, great food and art for tourists looking for year-round sunshine. With more and more people continuing to take advantage of remote working possibilities, such locations are likely to only increase in popularity.
In Mallorca, Portixol and Molinar have been on investors’ radars with their coastal location and proximity to the city centre. And Portocolom, a town located on the east coast of Mallorca, is also having a moment, with new hotels and Michelin star restaurants opening.
Step three: Consider property types that fit modern trends
We’ve touched on the rise of remote workers, and this changing dynamic in the workforce and the increasing appeal of flexible living and working arrangements is also impacting on demand for different property types. An emerging trend is being seen in the growth of apartments catering to digital nomads.
Meanwhile amenities such as heated pools and properties with gardens or access to beaches continue to be some of the most popular features across our platform. Whilst air conditioning, and fast internet access are also considerations for investors, aligning with evolving rental preferences.
Step four: Look ahead and measure the potential growth
Finally, to gauge an area's growth potential, it’s important for investors - particularly those intending to rent their property on short term agreements - to consider other factors, which include:
· Ongoing Costs: Anticipate additional expenses such as property management fees, advertising fees, and community fees to measure the return potential.
· Flexibility: Investors should seek properties that are adaptable for both short-term and long-term rentals, offering diverse income streams.
· Condition: Ensure the property is well-maintained and assess whether renovations or upgrades are required for increased appeal. If they are, consider this in your investment budget.
· Amenities: Features like heated pools and proximity to local amenities enhance a property's attractiveness.
· Walkability: Properties within walking distance of bars, restaurants, and amenities tend to be more appealing.
Louise Dell is co-founder of property portal Kyero.