Investing in Spanish Real Estate 2026: Why Prices Keep Rising
Investing in Spanish real estate is more attractive in 2026 than ever before. More and more Dutch, Belgian and international buyers are discovering that buying a house in Spain is not only a dream, but also an excellent investment. The Spanish property market has been recovering strongly for years, and prices keep rising steadily. In this article, we explain why investing in Spanish real estate is a smart choice right now, which regions offer the best returns and how to benefit from the growing international demand for Spanish properties.
The Spanish property market in 2026: facts and figures
The Spanish housing market has undergone a remarkable transformation in recent years. According to recent figures from the Spanish Ministry of Housing, property prices in Spain rose by an average of 6.8% in 2025. Especially in coastal areas — Costa Blanca, Costa Calida and Costa Almeria — we see an even stronger increase of 8% to 10% per year.
Why do prices keep rising?
- Growing international demand from the Netherlands, Belgium, Germany and the United States.
- Limited supply of new builds along the coast due to strict zoning regulations.
- Low interest rates compared to other European countries.
- Attractive tax incentives for foreign buyers.
- Rising tourism — Spain welcomed more than 90 million tourists in 2025.
For those who invest in Spanish real estate now, this means your property can significantly appreciate within five years — without you having to do anything.
Why investing in Spanish real estate pays off
1. High value appreciation
Buying a house in Spain is no longer a risky bet. The average value increase of real estate on the Costa Blanca over the past five years was 38%. For the Costa Calida and Costa Almeria, we see similar figures. Those who bought an apartment of €200,000 in 2020 now own a property worth approximately €276,000 on average — a great return without further effort.
2. Attractive rental yield
Renting out a property in Spain generates between 6% and 10% gross yield per year, depending on location and type. Especially villas with swimming pools on the Costa Blanca perform exceptionally well in holiday rentals. A property worth €350,000 can generate up to €30,000 in annual rental income.
3. Stable economy and political climate
Spain is a member of the European Union, uses the euro, and has a stable democracy. This makes investing in Spanish real estate a safe choice compared to emerging markets like Turkey or Morocco.
4. Tax advantages
The Netherlands and Spain have a tax treaty that prevents double taxation. Moreover, Spain offers tax benefits for non-residents and even favourable regimes for those who want to live as residents (such as the Beckham law).
Best regions to invest in Spanish real estate
Costa Blanca: the classic
The Costa Blanca stretches from Denia all the way down to Pilar de la Horadada and is by far the most popular region for Dutch and Belgian buyers. Towns like Moraira, Jávea, Calpe and Altea are known for their white beaches, Mediterranean charm and strong international community.
Advantages for investors:
- 300+ days of sunshine per year.
- Strong Dutch and Belgian community.
- Excellent infrastructure (Alicante airport within an hour).
- High holiday rental demand.
Average price: €3,500 – €5,000 per m² along the coast.
Costa Calida: the better-kept secret
Just south of the Costa Blanca lies the Costa Calida in the Murcia region. Here you still find affordable properties with enormous growth potential.
Advantages for investors:
- 320+ days of sunshine per year.
- Affordable compared to Costa Blanca.
- Rapid value appreciation due to emerging tourism.
- Mar Menor and La Manga: unique natural areas.
Average price: €2,000 – €3,500 per m².
Costa Almeria: untouched and on the rise
The Costa Almeria is for forward-thinking investors. With the Cabo de Gata natural park and authentic Andalusian villages, this region offers a unique combination of tranquility and growth potential.
Advantages for investors:
- Lowest price per square meter on the Spanish coast.
- Strong value appreciation expected over the next 5-10 years.
- Authentic Spain, not yet overrun by mass tourism.
- Almeria airport nearby.
Average price: €1,500 – €2,800 per m².
How to start investing in Spanish real estate
Step 1: Determine your strategy
Are you looking for holiday rental income, long-term rental or a combination with personal use? Each strategy has its own advantages and tax implications.
Step 2: Choose your region
Compare prices, tourist appeal and return on investment per region. We at CasaOthers are happy to help you make the right choice.
Step 3: Apply for an NIE number
The NIE (Número de Identificación de Extranjero) is mandatory for every purchase in Spain. You can apply through the Spanish consulate in your country.
Step 4: Open a Spanish bank account
You need a Spanish bank account for purchase costs, mortgage and ongoing bills.
Step 5: Work with a trusted real estate agent
An experienced agent like our partner Nelemans saves you time, money and legal hassle. They know the market and have access to the best offerings.
Common mistakes when investing in Spain
- Not researching local taxes and costs upfront.
- Buying without a lawyer (highly unwise in Spain).
- Making emotional purchases without calculating returns.
- Choosing the wrong region based on a one-time vacation feeling.
- Underestimating tax obligations for non-residents.
Conclusion: 2026 is the year to invest
Investing in Spanish real estate in 2026 offers unique opportunities. With value increases of 6-10% per year, strong rental yields and tax benefits, buying a house in Spain is one of the smartest investments you can make.
At CasaOthers, we help Dutch, Belgian and international investors find the right property on the Costa Blanca, Costa Calida and Costa Almeria. Browse our offerings and discover why hundreds of investors have already chosen Spain.
Ready to start? View our current property listings and take the first step towards your Spanish real estate investment.
