Real estate in Spain. Does investing here still make sense?

Are properties in Spain a “golden goose”? Or is it a risky trend that results in failed investments and lost money? Media hype, reports of increased risk when investing in this region, and numerous accounts of legal issues and fraud raise questions about the sense of buying property in Spain in 2026 and 2027. What is the real situation? And above all – what is the outlook for the luxury real estate market, hotels, and longevity residence investments? 

Real estate in Spain – is it still worth investing in?

Spain remains one of the most important real estate markets in Europe. That is why it attracts both people looking for a second home and investors interested in the premium segment. High foreign demand, rising prices, and large hotel transactions show that it is still a space of opportunity. At the same time, purchasing requires careful analysis of location, costs, and the legal status of the property. This also applies to prestigious offers. A high price or attractive location does not always guarantee a return.

According to the Spanish statistical office INE, housing prices rose by 12.2 percent year-on-year in the second quarter of 2026. In the secondary market, the increase was 12.9 percent, while in the new housing market it was 7.4 percent. This is a strong result. However, it does not guarantee further increases in every location.

Houses, apartments, residences – is it better to invest or to live in Spain?

Spain is beautiful. Many people simply love its climate and atmosphere. Stunning sea views are easy to find here. That’s why an apartment by the sea can primarily serve as a second home, used by the owner for part of the year. A property intended for rental, on the other hand, requires an assessment of seasonality, management costs, local rates, and the rules for running a tourist rental. In the case of a luxury residence, privacy, service standards, architecture, and access to amenities or wellness facilities are also important.

Spain attracts foreign buyers, especially in coastal regions. In the second quarter of 2026, buyers from outside Spain accounted for 15.98 percent of all residential transactions in the country. In the first half of 2026, just over 50,000 properties were acquired by foreign buyers. In the province of Alicante, their share reached 46.43 percent, in Malaga 37.01 percent, and in the Balearic Islands 32.27 percent.

The popularity of Spain should prompt buyers to exercise extra caution. When there is a lot of activity, the likelihood of fraud increases, so thoroughly checking the property is essential. Before purchasing, you need to verify the legal title, encumbrances, construction documentation, permits, and the rules for using common areas—ideally by conducting due diligence on the property. If you are planning tourist rentals, it is also necessary to check local regulations and licensing requirements—these differ from city to city. Not every property in a resort can be legally rented out for short stays.

Data from the luxury real estate market – which properties are worth adding to your investment portfolio?

Whoever doesn’t feel sentimental about Spain, sees it as a place for investment. How will an apartment or property perform as an investment? Let’s consider this without emotion. In an investment portfolio, you can consider several different models:

• apartment in an attractive location,
• a house or residence intended for private use,
• property in a serviced complex
• purchase of a hotel or shares in a hotel.

However, these are not equivalent products. An apartment for rent can generate ongoing income, while a residence used by the owner will primarily have utility value. On the other hand, a unit in a complex managed by an operator may offer services, but it can also involve additional fees and restrictions regarding rental or resale.

Investments and Longevity residences. Is this the right direction?

Projects combining residential spaces with wellness, preventive healthcare, and medical services are playing an increasingly important role. An example is Oakmond Marbella, a venture with a declared value of around 260 million euros. It includes a luxury hotel with 140 rooms and suites, 28 private residences, and a longevity clinic. The project secured 145 million euros in funding from Goldman Sachs Alternatives. Its opening is scheduled for 2029. This is an example of a property where the residential offering is part of a larger service ecosystem. This segment is growing rapidly, and the topic of longevity, which we have already covered, is worth a closer look.

A similar concept is being developed by Altaona in the Murcia region. Here, luxurious detached homes are combined with medical, sports, hotel, and wellness facilities. In such projects, before making a purchase, it is important to check which services are actually available, who is responsible for them, and whether their cost is included in the fees or charged separately. Simply using the term longevity does not guarantee an increase in property value.

The most important real estate transactions in Spain: an overview

Large transactions show that investor interest extends not only to apartments but also to hotels, which can be modernized and developed under a recognizable brand. In the first half of 2026, the value of hotel investments in Spain amounted to approximately 2.46 billion euros, 26.5 percent more than the previous year. Around 60 percent of the capital went to resort properties, and 86 percent of transactions involved four- and five-star hotels. In the first half of 2026, hotels worth around 11.7 billion euros were purchased in Europe, according to data from Cushman & Wakefield. Reports indicate that Spain attracts investors interested in purchasing luxury, five-star hotels.

One of the largest transactions in recent years was the sale of Mare Nostrum Resort in Tenerife for around 430 million euros in 2025. The complex includes three hotels and 1,037 rooms. Prior to the sale, a renovation worth approximately 56 million euros was carried out. The transaction demonstrates the scale of capital involved in mature tourist properties, whose value depends on location, standard, and operational potential.

In 2026, the Tivoli La Caleta hotel in Tenerife was sold for around 140 million euros. In Barcelona, the Grand Hyatt was offered for approximately 280–300 million euros. The property changed hands in 2023, at that time costing 180 million euros. It was modernized. It underwent renovation, and its value increased dramatically. It did not wait long for a new owner.

Where to buy property: top addresses, our picks, prospects

Investment map in Spain looks extremely interesting and diverse. It’s hard to point to just one spot. Additionally, each location is different and offers its own benefits. Here is a simple, and probably incomplete, overview along with our recommendations!

Costa del Sol, especially Marbella and its surroundings, is a market for those seeking luxury homes, apartments, and residences with extensive infrastructure. Marbella attracts particular interest from foreign investors. However, in the most prestigious locations, it is especially important to carefully assess the purchase price and the potential group of buyers when reselling.

Tenerife and the other Canary Islands attract investors interested in hotels, wellness, and tourism. Major hotel transactions confirm the interest of professional capital, but purchasing a private apartment requires a separate analysis of local rental regulations, seasonality, and management costs.

Barcelona offers access to a large urban market, international business, and tourism. In the premium segment, brand, building standards, and location are important, but one must also consider rental restrictions and the high purchase costs in the most desirable districts.

Murcia and longevity-type projects may appeal to those seeking property in a more tranquil environment, with access to sports, wellness, and healthcare services. However, this is a segment where it is especially important to verify the operator’s credibility and the actual scope of the infrastructure.

Before making a purchase, you should calculate the total investment cost, taking into account taxes, transaction fees, financing, insurance, maintenance, and any potential operator fees. It is also worth checking the possibility of resale and whether the projected revenues are based on realistic assumptions.

Real estate in Spain – a market full of opportunities, but for the attentive

Spain still offers opportunities both for those seeking a second home and for investors interested in the premium segment. However, the most important factor is matching the property to your goal: private use, rental income, or long-term value growth. The quality of the investment will be determined not just by location and standard, but also by the entry price, legal status, maintenance costs, and real demand for the given type of property.