Costa de Barcelona Guide: Your Perfect Mediterranean Escape

The Costa de Barcelona offers the rare combination of world-class city culture and pristine Mediterranean beaches. Whether you’re planning a weekend getaway or exploring the possibility of making this paradise your second home, this guide covers everything you need to know.

Spain’s Most dynamic Metropolitan Coastal Paradise

The Costa de Barcelona offers the rare combination of world-class city culture and pristine Mediterranean beaches. Whether you’re planning a weekend getaway or exploring the possibility of making this paradise your second home, this guide covers everything you need to know.

The Costa de Barcelona represents one of Europe’s most compelling property opportunities, offering an unbeatable combination of metropolitan sophistication, Mediterranean beaches, and direct access to one of Spain’s most vibrant cities. For international property buyers, this stretch of coastline delivers what many other destinations cannot: the perfect balance between urban convenience and coastal lifestyle, robust rental markets driven by both tourism and business travel, and world-class infrastructure that rivals any major European city.

Whether you’re seeking a holiday home with easy access to both city culture and beach relaxation, planning an investment property in Spain’s economic powerhouse, considering retirement where healthcare and cultural activities excel, or looking to establish a base for remote work with Europe’s best connectivity, the Costa de Barcelona offers distinct advantages tailored to different property goals.

The numbers speak for themselves: with over 19 million visitors annually to Barcelona province and a thriving year-round economy, properties here benefit from exceptional rental demand. International buyers are increasingly recognizing the unique value proposition of owning property that combines Barcelona’s metropolitan advantages with coastal Mediterranean living.

This sophisticated coastal region remains the preferred destination for discerning property buyers who understand that owning here isn’t just about location—it’s about securing access to one of Europe’s most dynamic and culturally rich coastal lifestyles.

Why the Costa de Barcelona is a Paradise

The Costa de Barcelona encompasses much more than just Barcelona city—it’s a sophisticated coastal region stretching from the Costa Brava border to the Costa Daurada, including the dynamic counties of Maresme, Barcelonès, Baix Llobregat, and Garraf. This unique positioning offers property buyers something truly exceptional: access to one of Europe’s most important business and cultural centers while enjoying Mediterranean coastal living.

Unlike purely tourist-focused coastal areas, the Costa de Barcelona benefits from a robust year-round economy driven by technology, finance, tourism, and international business. This economic diversity creates stable property values and consistent rental demand that persists even after summer ends.

For lovers of urban sophistication, Barcelona itself offers a diverse range of options, from Gothic Quarter apartments steeped in history to cutting-edge architectural masterpieces in the Eixample district. The city’s four UNESCO World Heritage sites, including Gaudí’s extraordinary works, form a living museum that attracts millions of cultural tourists each year.

The Maresme Coast, stretching north from Barcelona, offers a more relaxed pace while maintaining easy access to the city. Towns like Mataró, Arenys de Mar, and Sant Pol de Mar offer authentic Catalan coastal living, complemented by excellent train connections that provide access to Barcelona’s center within 30-45 minutes.

Heading south, Sitges has established itself as the premier resort town on the Costa de Barcelona, attracting an international community with its 17 beaches, over 300 days of sunshine, and sophisticated cultural scene. This former fishing village has evolved into a year-round destination that perfectly balances authentic charm with modern luxury.

The Garraf Natural Park provides a dramatic backdrop to coastal properties while ensuring limited development that protects property values. This combination of natural beauty and development restrictions creates scarcity that supports long-term appreciation.

The beach of Sitges

Let’s Start with Gastronomy

The gastronomy of the Costa de Barcelona reflects its unique position as both a coastal region and a central metropolitan area. From Michelin-starred restaurants in Barcelona to chiringuitos (beach bars) serving fresh seafood in Sitges, the culinary scene offers unparalleled diversity.

Local specialties include fresh seafood from the fishing ports of Vilanova i la Geltrú and Arenys de Mar, as well as world-renowned Catalan cuisine featuring dishes like mar i muntanya (sea and mountain), exceptional wines from the nearby Penedès region, and innovative fusion cuisine from Barcelona’s cutting-edge chefs.

The region’s commitment to gastronomy extends beyond restaurants—local markets, such as Barcelona‘s La Boqueria and Santa Caterina, offer a wide selection of fresh produce. Meanwhile, coastal towns maintain traditional fish auctions where restaurants bid on the day’s catch.

Must-See Places of the Costa de Barcelona

Understanding what makes each area special is crucial when choosing where to invest your money and your future. The Costa de Barcelona offers far more than beautiful beaches—each location has developed its character and provides different opportunities for property buyers.

Barcelona: The Metropolitan Heart

Gothic Quarter and Born represent Barcelona’s historic soul, where medieval architecture meets contemporary lifestyle. Properties here aren’t just homes—they’re pieces of living history. The narrow streets conceal renovated apartments with original features, such as exposed stone walls and wooden beams, now complemented by modern amenities. The neighborhood’s proximity to the beach, museums, restaurants, and nightlife makes it particularly attractive to buyers seeking an urban lifestyle with character.

Eixample showcases Barcelona’s golden age of architecture, with its distinctive grid pattern and chamfered corners creating unique octagonal blocks. Properties in this area, especially those in original modernist buildings, command premium prices. The neighborhood’s wide boulevards, designer shops, and central location make it a popular choice for professionals and families seeking elegant city living.

Brilliant stained glass windows bathe Gaudí’s sacred columns in cascading waves of red, blue, green, and yellow light, transforming stone into a living kaleidoscope of divine radiance in the Sagrada Familia.

Barceloneta and Port Olímpic offer beachfront living within the city limits—a rarity in major European capitals. While Barceloneta maintains its fishing village character with narrow streets and traditional tapas bars, Port Olímpic provides modern marina living with contemporary apartments and sea views.

Gràcia and Sarrià-Sant Gervasi appeal to families and professionals seeking a village atmosphere within the city. These former independent towns maintain distinct personalities, with local squares, traditional shops, and strong community spirit, while offering easy access to international schools and business districts.

Barcelona city views from Tibidabo

Maresme Coast: Accessible Coastal Living

Mataró, the capital of Maresme with 125,000 inhabitants, offers exceptional value for buyers seeking coastal property with urban amenities. The city’s tech park, renovated seafront, and 30-minute train connection to Barcelona create opportunities for both residential and investment properties.

Premium coastal towns like Sant Pol de Mar, Canet de Mar, and Caldes d’Estrac offer a traditional Catalan beach town atmosphere, complemented by modernist architecture and established international communities. These towns benefit from the coastal train line that provides reliable connections to Barcelona.

Alella and Teià in the Maresme hills offer a different perspective—literally. These wine-producing towns provide stunning sea views, spacious properties with gardens, and a more suburban ambiance, while maintaining easy access to both beaches and Barcelona.

Southern Coast: Sophistication and Nature

Sitges deserves special attention as the premier resort destination on the Costa de Barcelona. With 28,500 permanent residents swelling to over 100,000 in summer, the town maintains year-round sophistication. The historic center’s narrow streets, 17 beaches, and vibrant cultural calendar, including internationally renowned film and theater festivals, create consistent property demand.

Castelldefels offers family-friendly beach living just 20 minutes from Barcelona airport. The town’s 5-kilometer beach, Olympic Canal, and proximity to international schools make it a popular destination for relocating families and professionals.

Vilanova i la Geltrú offers more affordable coastal living while maintaining excellent infrastructure and a genuine Catalan character. The town’s fishing port, markets, and lower property prices attract buyers seeking value without sacrificing a coastal lifestyle.

Boulevard around San Sebastian Beach in Sitges, Spain

Costa Barcelona Property Market analysis

Barcelona Real Estate: Leading Spain’s Recovery

Barcelona city’s property market has demonstrated remarkable resilience and growth, with current prices close to €5,000/m² representing a strong recovery from the 2008 crisis. The market benefits from diverse demand sources, including international companies establishing European headquarters, digital nomads attracted by the lifestyle and connectivity, students and academics from world-renowned universities, and tourists driving short-term rental returns.

Recent transaction data shows that Barcelona province is maintaining robust activity, with over 73,000 annual transactions, demonstrating market liquidity despite price growth. International buyers, particularly from France, UK, Germany, and increasingly the US and Latin America, view Barcelona property as both lifestyle and investment assets.

Real estate prices in Barcelona: €2,865 /m² as of March 2025

Coastal Market Dynamics

The coastal towns show interesting price variations that create opportunities for different buyer profiles:

• Premium locations (Sitges, Sant Pol de Mar): €4,000-5,000/m²
• Family coastal towns (Castelldefels, Mataró): €2,500-4,000/m²
• Value opportunities (Vilanova i la Geltrú, Calella): €2,200-3,000/m²

The key differentiator is transport connectivity—towns with direct train lines to Barcelona command premiums of 20-30% over those requiring car access. The property market across Barcelona province’s coastal municipalities presents a clear pricing hierarchy, with Sitges commanding premium prices at €5,000 per square meter, positioning it alongside Barcelona city itself at €4,900 per square meter as of March 2025. Moving down the coast, Vilanova i la Geltrú offers a more affordable entry point at €2,800 per square meter. At the same time, the larger industrial towns offer even more affordable options: Mataró (125,000 inhabitants) at €2,100 per square meter, Badalona (215,600 inhabitants) at €2,300 per square meter, and Premià de Mar at €3,000 per square meter. Market dynamics show robust growth across the region, with Sitges maintaining its luxury status with consistent premium pricing. This coastal corridor benefits from excellent connectivity to Barcelona while offering Mediterranean lifestyle advantages, making it an attractive alternative for those seeking seaside living without the capital’s premium price tags. The broader Spanish property market’s 9% growth over the last 12 months to Q1 2025 has lifted all boats in this desirable region, with new construction projects particularly prominent in Sitges, Mataró, Badalona, and Vilanova i la Geltrú, reflecting sustained investor and buyer confidence in these well-connected coastal communities.

Line graph depicting Spain real estate prices, with Barcelona property prices rising to 2,865€ by March 2025, surpassing the national average of 2,033€, alongside transaction volume trends from 1995 to 2025.

If you want to read more on the Spanish property market, don’t miss our detailed quarterly report:

Spanish Housing just shy of All-Time Highs – March 2025 update

For Investment Property Buyers

Barcelona and the Costa de Barcelona offer diverse investment opportunities with strong fundamentals. The city’s position as a European tech hub, with over 1,500 startups and growing, creates consistent rental demand from international professionals.

Short-term rental regulations in Barcelona city (requiring specific licenses) have created opportunities in surrounding coastal towns where regulations are more flexible. Sitges, Castelldefels, and Mataró offer strong tourist rental potential with fewer restrictions.

The upcoming expansion of Barcelona airport and continued infrastructure improvements, including the planned Mediterranean Corridor railway, support long-term appreciation potential.

For Retirement Living

The Costa de Barcelona excels for retirees seeking an active urban lifestyle combined with coastal relaxation. Barcelona’s world-class healthcare system offers both public and private options, with facilities such as Hospital Clínic and Hospital del Mar ranking among the best in Europe.

The extensive public transport network—including metro, buses, trams, and coastal trains—means retirees can maintain independence without driving. Cultural activities, from opera at the Liceu to beach walks in Sitges, provide year-round engagement.

Smaller coastal towns, such as Caldes d’Estrac, historically renowned for their spa treatments, offer quieter retirement options while maintaining good transportation links for medical appointments and cultural activities in Barcelona.

Aerial panoramic view over Passeig de Colom or Columbus avenue, La Barceloneta and Port Vell marina from Christopher Columbus monument in Barcelona, Catalonia, Spain

For Digital Nomads and Remote Workers

Barcelona has established itself as Europe’s premier destination for digital nomads, combining a vibrant lifestyle, state-of-the-art infrastructure, and a strong sense of community. The city offers 50+ co-working spaces, fiber internet throughout the metropolitan area, and a thriving international tech community.

Coastal towns provide alternatives for those seeking a beach lifestyle with urban connectivity. Sitges, Mataró, and Castelldefels all offer co-working spaces and strong internet infrastructure while providing more relaxed environments than the city center.

The new digital nomad visa makes Spain increasingly attractive for location-independent professionals, with Barcelona offering the perfect combination of lifestyle and professional opportunities.

The Catalan Context

While political tensions have made headlines, the day-to-day reality for property owners remains stable and positive. The Catalan economy continues to thrive, representing 20% of Spain’s GDP. International businesses continue to invest, tourism remains strong, and property values have shown resilience throughout political uncertainties.

For property buyers, it’s worth noting that Barcelona’s international character—with residents from over 180 nationalities—creates a cosmopolitan environment that transcends local politics. The city’s economic fundamentals, based on tourism, technology, and trade, remain robust regardless of political developments.

Events and Cultural Life

The Costa de Barcelona offers year-round cultural activities that enhance property values and lifestyle:

• Barcelona: Las Ramblas, Sagrada Familia, Park Güell, Gothic Quarter, plus world-class museums, opera, and dining
• Sitges: International Film Festival, Carnival, Pride celebrations
• Mataró: Les Santes festival, modernist architecture tours
• Vilanova i la Geltrú: Carnival rivals Rio’s for authenticity
• Throughout the coast: Beach clubs, sailing, golf courses, wine tours in nearby Penedès

Views of Barcelona city.

Getting Started: Your Path to Costa de Barcelona Property Ownership

The opportunity to own property on the Costa de Barcelona represents more than a real estate transaction—it’s a gateway to one of Europe’s most dynamic and culturally rich regions, where metropolitan sophistication meets Mediterranean lifestyle.

Whether your goal is to create a profitable investment in Spain’s economic powerhouse, establish a base for business and leisure, enjoy retirement with world-class amenities, or join Europe’s premier digital nomad community, the Costa de Barcelona offers proven opportunities for achieving your objectives.

Costa de Barcelona Map

Find everything on the Costa de Barcelona: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The UNESCO sites, the parks for kids, the green parks, the golf courses, the universities, and last but not least the top beaches.

Download here our map of the Costa de Barcelona

The Reality of Living on the Costa de Barcelona

Beyond the obvious attractions of beaches and urban culture, international residents discover that the Costa de Barcelona offers a quality of life that often exceeds their expectations, supported by infrastructure and services that make permanent or extended living both comfortable and practical.

Healthcare Excellence that exceeds Expectations

The healthcare system in the Costa de Barcelona is world-renowned, with Barcelona hosting some of Europe’s most advanced medical facilities. The Hospital Clínic, consistently ranked among the world’s top 100 hospitals, serves as both a treatment center and research institution. International residents regularly comment that healthcare here exceeds what they experienced in their home countries, both in terms of quality and accessibility.

For non-EU residents, private healthcare insurance costs significantly less than equivalent coverage in Northern Europe or the US while providing access to the same high-quality facilities and English-speaking medical professionals. The combination of excellent public and private healthcare options creates a safety net that gives property owners peace of mind.

Education and Family Life

International families find that the Costa de Barcelona offers exceptional educational opportunities that rival any major European city. Barcelona hosts numerous international schools offering curricula from the British, American, French, and German systems, while the city’s universities—including IESE, ESADE, and the University of Barcelona—draw students and academics from around the world.

The outdoor lifestyle available year-round means children develop in a healthy environment that balances urban culture with beach activities. Many families report that their children become multilingual naturally, speaking Catalan, Spanish, and English, creating advantages that last throughout their lives.

The Digital Revolution

Barcelona has transformed into Southern Europe’s leading tech hub, with over 1,500 startups and major tech companies establishing offices. This digital revolution has enabled the Costa de Barcelona to attract a new generation of remote workers and digital entrepreneurs who can maintain international careers while enjoying Mediterranean living.

The city’s 50+ co-working spaces have become networking hubs where international professionals collaborate on projects spanning multiple continents. Even coastal towns like Sitges and Mataró now offer co-working facilities, extending the digital nomad lifestyle beyond the city center.

Community and Integration

Perhaps most surprisingly for newcomers, the Costa de Barcelona has developed one of Europe’s most welcoming international communities. Barcelona’s 180+ nationalities create a cosmopolitan environment where newcomers quickly find their tribe, whether through professional networks, hobby groups, or neighborhood associations.

The cost of living, while higher than in other Spanish regions, remains significantly lower than equivalent lifestyle destinations in Northern Europe. A comfortable lifestyle that might require substantial wealth in London, Paris, or Amsterdam becomes accessible to middle-class professionals on the Costa de Barcelona.

The Costa de Barcelona is waiting for you

The Costa de Barcelona offers a unique proposition in the Spanish property market: the perfect blend of metropolitan sophistication and Mediterranean coastal living. With strong economic fundamentals, excellent infrastructure, and diverse lifestyle options, it represents one of Europe’s most compelling property investment opportunities.

From Barcelona’s architectural treasures to Sitges’ beach sophistication, from Mataró’s authentic charm to Castelldefels’ family appeal, the region offers something for every property buyer. The key to success lies in understanding your priorities and working with local experts who know how to navigate this dynamic market.

The Mediterranean lifestyle enhanced by urban culture awaits. The Costa de Barcelona isn’t just a place to own property—it’s a gateway to one of Europe’s most exciting and liveable regions.

For expert guidance on finding your perfect property on the Costa de Barcelona, connect with our network of vetted local professionals who understand both the market dynamics and the lifestyle dreams that bring international buyers to this exceptional region.

With our team of over 100 local real estate partners, HowtobuyinSpain helps foreigners navigate this sophisticated market with confidence. Marina, Xavier, and James are our local property hunters in Barcelona and the Costa de Barcelona, ready to assist you with your property search.

Check the Barcelona property market in our quarterly report dedicated to the analysis of the Spanish real estate market.

Discover the best new build projects in Barcelona and the Costa de Barcelona available right now.

Have a look at a few papers we wrote on the real estate market in Barcelona and Sitges:

• Barcelona property investment: a Case study, a paper written in collaboration with our local property hunter
• Barcelona real estate market is rising in 2017
• Sitges, a commitment to tranquillity near Barcelona

Are you looking for a local partner, such as a lawyer or property hunter, on the Costa de Barcelona? Don’t look further, check our team and ask us for the correct contact.

1. Best Professionals 2. Follow-up 3. Competitive pricing 4. Partners 5. Qualitative Check

Costa de Barcelona map – details

Here are all the main items you’ll find in our Costa de Barcelona map:

• Airports: Barcelona – El Prat
• AVE stations: Barcelona
• Cities: Barcelona (1,600,000 inhabitants), Sitges (28,500 inhabitants), Mataró (125,000 inhabitants), Badalona (215,600 inhabitants), Vilanova i la Geltrú (66,000 inhabitants), Premià de Mar (27,900 inhabitants)
• UNESCO sites: Palau de la Música Catalana and Hospital de Sant Pau, Barcelona (1997), Works of Antoni Gaudí (1984,2005), Barcelona, Poblet Monastery (1991), Archaeological Ensemble of Tárraco (2000). Find all the UNESCO Sites in Spain on our page: “10 reasons why you should buy in Spain”
• Top beaches: Balneario Titus (Arenys de Mar), Balneario Hotel Colón (Caldes d’Estrac), Santa Susanna, Malgrat de mar (Maresme), PREMIÀ DE MAR (Maresme), San Bartolomé y santa Tecla, Vilassar de mar (Barcelona), playa principal de Calella (Calella), Roca Grossa (Calella), Barceloneta Beach (Barcelona), La Playa de Sitges (Sitges), Beach Castelldefels Barcelona (Castelldefels), Playa de Castelldefels (Castelldefels), Playa Balmins (Sitges), Bogatell Beach (Barcelona), Platja de Ribes Roges (Vilanova i la Geltru), Badalona Beach (Badalona), Passeig Marítim (Sitges), Nova Mar Bella Beach (Barcelona), Playa de Sant Sebastia (Sitges), Ocata Beach (El Masnou), Delta del Llobregat (El Prat de Llobregat), Playa del Hombre Muerto (Sitges), Sausalito Beach (Sitges), Platja de la Nova Icaria (Barcelona), Platja de Gava (Gava)
• Kids Parks: Parque Tibidabo (Barcelona), Isla Fantasía (Vilassar de Dalt), Zoo (Barcelona)
• Shopping Malls & Outlets: El Corte Inglés (Barcelona), Mataró Park (Mataró), Diagonal Mar (Barcelona), La Maquinista (Barcelona), Vila Lauren (Vilanova i la Geltrú), Gran Via 2 (Barcelona), Pedralbes Center (Barcelona), Maremagnum (Barcelona), La Roca (Granollers), Gran Via 2 (Hospitalet de Llobregat)
• Traditional & Flea markets: Els Encants Barcelona, LA BOQUERIA Barcelona, SANTA CATERINA MARKET Barcelona, PRINCESA MARKET Barcelona, SANT ANTONI MARKET Barcelona
• Top golf courses: Sant Joan, San Cugat, Terramar, Vallromanas, La Roca Play with the best golf clubs sets in Spain thanks to our local partner.
• Natural Parks: Parc del Garraf, Parc polivalent Francesc Macià, Parc-Espai Natural, Parc Natural Corredor, Tordera, Salt Petit, Riera de Pineda, Montnegre i el Corredor, Consorci del Parc de la Serralada de Marina, Parc de la Ciutadella
• Universities: Universitat de Barcelona, Universitat Autònoma de Barcelona, Universitat Pompeu Fabra, Universitat Politècnica de Catalunya, Universitat Ramon Llull, Universitat Internacional de Catalunya
• Hospitals: Hospital Clínic, Hospital del Mar, Hospital Universitari de la Vall d’Hebron, Hospital Sagrat Cor (Barcelona), Hospital Municipal de Badalona (Badalona), Hospital de Mataró (Mataró)

Read further on the Costa de Barcelona and Spain

1. TOURIST OFFICE of Barcelona
2. AIRPORTS: All the Spanish Airports and flights info on the official site of AENA
3. TRAINS: Renfe website
4. BEACHES: Where will you find the top beaches in Spain?
5. GOLFS: Reread our Summer paper on the subject What are the top golf courses in Spain? Play with the best golf clubs sets in Spain thanks to our local partner. Check the Spanish Federation here: Looking for a Golf Club in Spain?
6. KIDS PARKS: Our selection of the Top parks for children in Spain
7. MUST VISIT IN SPAIN: Our top 5 UNESCO World Heritage Sites in Spain, Find all the Unesco sites in Spain

Find all our other articles and maps on the Spanish Costas:

With our team of more than 100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.

The experts from our network are active in all the fields you need:

1. Property finders
2. B&B
3. Lawyers
4. Tax
5. Architects
6. Money Transfer
7. Mortgage
8. Holiday rental management
9. Insure your Spanish property
10. Property survey
11. Renovation

Looking for an expert: Architect, property hunter, lawyer,… in Spain? Ask us directly!

FAQ Costa de Barcelona guide

The post Costa de Barcelona Guide: your perfect Mediterranean Escape appeared first on How to buy in Spain.

Follow this link if you are looking for the last update on the real estate prices for the top 20 Spanish cities.

Property investment in Spain: a very strong return of +11.2%

According to statistics released by the Central Bank of Spain in November 2022, the return expected on the residential Real Estate market in Spain is 11% and 8.4% if you take a mortgage – Green line on the chart. Not a bad property investment in Spain!

This performance comes from two sources:

• gross rental yield estimated at 3,6% –Blue line on the chart– and
• capital gain estimated at 7.6%.

Here is what we will cover in this article:

The Spanish real estate market has been strong since 2014 

Sure Covid came to impact the market for the last three years to the end of 2021 but since 2022 here are the main evolutions:

As a reminder those are the trends that impacted the real estate markets worldwide post Covid:

• • people are buying bigger, with more outside spaces and lights
  • people are buying outside big cities
  • foreigners are less active due to travel restrictions (but at HTBIS we could see a strong pick up in activity since the end of 2020)

Don’t miss our detailed quarterly report: The top 20 property markets in Spain

Now, we are fighting against a new “issue”… inflation. The good news is that the Spanish real estate market offers a nice hedge against inflation up to now and returns remain stron.

1. Spanish real estate return is back above 10% since May 2019

    

   Of course, the uncertainty in the economy that came from Covid was noticeable in 2020 but since 2021, the market is rebounding strongly both in terms of transactions and prices. Have a look at our Spanish real estate quarterly report studying the property price evolution in all the top 20 regions of Spain for more.

    

   Have a look at our interactive chart (yes when you come back, it will be updated). As you will see, property investment in Spain was wise since 2014.

    

    

2. Mortgage rates in Spain are rising since the start of 2022 at 2.9%

    

   Yes, inflation is back, and so interest rates are rising. As of November 2022, mortgages rates were issued at 2.9% in Spain, Red line on the chart

    

    

   

   Get the best mortgage rate in Spain

    

   Read our article updated every month with the current mortgage conditions, we have added many interesting statistics to follow as inflation levels: Find the best mortgage rate in Spain

   We told you since 2020 that the risk was there for inflation spiking. Now, low mortgages are a history of the past but our view is that at the current levels of mortgages rates are still low. Another interesting thing to note is that real estate buyers are taking fixed-rate mortgages to finance their real estate purchases right now. Read more on that: Fixed or variable rates mortgage?

   Have a quick look at our Spanish mortgage calculator if you want to know what is your purchasing power to buy a property in Spain:

    

   

   We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

   The first real positive return since the crisis of 2008 came in early 2014 … six years ago…

   As you can see on our chart, the estimated return became slightly positive for the second time since 2008 at the start of 2014. In 2010, the estimated return went slightly positive but it was not enough to compensate for the mortgage costs. The performance was much stronger in 2018 as the estimated profitability was higher than 10%. Right now, with close to 6%, the estimated profitability covers more than 3 times the current mortgage costs.

   Follow this link if you want to learn more about our partner, one of the leading Mortgage brokers in Spain.

    

3. Real estate prices are lower than 10 years ago

    

   Are there a lot of downsides to where we are here? Check the chart of real estate price evolution before and after 2007:

    

    

4. Spanish real estate returns have the second weakest performance in Europe on a 10-year time frame

   Have a look at the comparison of the real estate market in Spain vs other European countries on any time frame between 3 months and 10 -year time frame

    

   

   European House prices index

    

   As you saw on this histogram, Spain has the weakest performance in a 10-year time frame. Click on the chart to check the performance for other period lengths.

    

5. Spanish Real Estate has the highest yields vs many European Cities

   Discover the best new build projects in Spain available right now

   New build for sale in Spain € 320,000

   2 beds 1 bath 61.3 m²

   New build for sale in Spain € 313,000

   2 beds 2 baths 61.3 m²

   New build for sale in Spain € 540,000

   3 beds 3 baths 191 m²

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   3 beds 2 baths 119.8 m²

   New build for sale in Spain € 540,000

   3 beds 2 baths 129.2 m²

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   3 beds 2 baths 106.9 m²

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   3 beds 3 baths 177 m²

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   New build for sale in Spain € 220,000

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   2 beds 2 baths 80 m²

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   New build for sale in Spain € 355,000

   3 beds 2 baths 100 m²

   New build for sale in Spain € 385,000

   2 beds 2 baths 76 m²

   New build for sale in Spain € 325,000

   3 beds 2 baths 97 m²

   New build for sale in Spain € 269,000

   2 beds 2 baths 81 m²

   New build for sale in Spain € 631,000

   3 beds 2 baths 123 m²

   New build for sale in Spain € 345,000

   2 beds 2 baths 154 m²

   New build for sale in Spain € 430,000

   3 beds 2 baths 116 m²

   New build for sale in Spain € 730,000

   3 beds 2 baths 149 m²

   New build for sale in Spain € 529,000

   3 beds 2 baths 133 m²

   New build for sale in Spain € 319,000

   2 beds 2 baths 87 m²

    

   Is Spanish property a good investment? Spain is in the sweet spot for a property investment if you check the real numbers!

   If you want to know your property return for your Spanish property, you need to know a few data: your rental income before and after costs, your property prices and of course it is good to know the costs of your property including taxes. For more on that, read: the cost of owning a property in Spain and What are the taxes you have to pay on your Spanish property?

   Buy to let? Spain offers some of the best returns in Europe:

   • Madrid is in 7th place in Europe with a return of 3,9% and offers one of the best rental yields in Spain with more safety on your investment.
   • Alicante took over the second place one of the best rental yields in Europe with a return of 4,6%, not bad
   • Barcelona is the eleventh city in Europe with a yield of 2,2% according to Deloitte. Rents went down heavily in Barcelona for a few reasons, in 2020, the local authorities did introduce a cap on rents… while at the same time, the lockdown was quite strong, and a lack of demand from international businesses. We wouldn’t be surprised to see the yield come back up in the years to come.

   Check the best rental Yields for the major European Cities, Madrid, and Alicante have rental yields close to 4%.

    

    

   Barcelona and Madrid are the 5th and 8th most expensive European cities in terms of price/m²…

   Have a look at our interactive chart

    

   But check on the above chart, the price/m² in London is 7,916€/m² and 12.917€/m² in Paris… while Barcelona and Madrid are closer to 6.000€/m² and 5.000€/m².

   You read it correctly: less than one-quarter and one-third of the price of London and Paris. Period.

   Now, you understand why the returns in Madrid and Alicante are much higher than the ones in Paris and London.

   Do you think that the downside risk is higher in Barcelona and Madrid than in Paris and London?

   In the 2023 report from CBRE on European Investor Intentions, we find both Madrid and Barcelona in the top 6 as the best cities for real estate investors.

    

   

    

6. Real estate activity has strengthened since end of 2021 …post-Covid

   Close to 95.000 properties were bought by foreigners in Spain in 2021 (12 months to September 2021) and more than 545.000 by Spaniards.

    

   It looks like others agree with our conclusions…

   Check for more information on our up-to-date pages on the Spanish national real estate market (prices and activity) and on the Spanish regional real estate markets (prices and activity).

   If you want to have a deeper analysis, city per city, we would suggest reading our full report on that (click on the picture):

   

   Here is as well our report on the Most active cities in Spain in 2019 (in terms of transactions).

    

7. Big uncertainty for the Spanish economic activity

   Of course, we noticed a strong rebound in early 2020,… stopped by Covid. But activity in Spain is staying stronger than in most of the other European countries. What a roller coaster!

   Check our up-to-date tables of a few Economic indicators in Spain:

   But after this strong rebound, as everywhere in the world, we wait for the uncertainty to settle and the vaccines to allow more “normal” economic activity.

    

8. Financial markets will be more volatile

   2018 with a year of higher volatility and negative returns in the financial markets. 2020 saw a huge spike in volatility due to Covid. Shortly after, the Central banks poured money to support economies.

   Since 2022, we expect higher volatility in financial markets due to the change of policy from central banks all over the world. As of 2023, the interest rate curve is inverted, which signals a very high probability rate of an economic recession. Of course, a big unknown is how inflation numbers will come in the next years. The good news as of mid-2023 is that energy prices came back under the levels of early 2022 when the war started in Ukraine.

    

9. Spanish real estate outlook for 2023

   As we wrote in our article, we are moderately optimistic about the outlook for the real estate market in Spain in 2023. While we have to admit that the comeback post-Covid of the Spanish real estate market (and everywhere in the world) was quicker and stronger than we expected. If we compare it to international markets, the rise is reasonable and not speculative. So, in our mind, we don’t see a real estate bubble here. The good news for international real estate cash-buyers: it should be easier to find properties as interest rates are rising.

    

10. How do we assist our customers to buy finding their dream homes in Spain?

     

    Whether you’re looking for a holiday home or a permanent residence, all our local partners will help you to find the perfect property in their extensive selection of properties to suit your needs and budget. With a wealth of experience and knowledge, our team of real estate professionals are dedicated to helping you find your dream property in Spain.

    But we’re not just here to help you find your perfect property. We also offer a range of services to make the buying process as smooth and hassle-free as possible. From legal advice to property management, we’ve got everything covered. Don’t hesitate to get in touch with our HTBIS team.

     

    Have a look at our interesting articles:

    • The 7 pitfalls of buying a property in Spain
    • Top 10 reasons why we think that the Spanish market is a nice real estate opportunity right now. We bought ourselves in 2014,… and in 2019… let’s put our money where our words are 😉 .
    • Spanish Real estate market vs the other European markets – Our quarterly update
    • Madrid investment case study
    • Barcelona investment case study
    • Tenerife property investment case study
    • Six reasons to love your property shopper

     

     

    Looking for a local property hunter, a local lawyer, … any expert in Spain? Ask us directly!

    

    Stéphane

    Senior analyst and strategist at HTBIS

    Check the full HTBIS team here

     

11. All our charts of this article are available here in a downloadable format

     

     

    

    Property investment Spain

    

    Calculate the return on your property investment in Spain

    

    Foreigners’ real estate activity in Spain

     

    

    Real estate prices and transactions in Spain

Source: Deloitte Property Index 2020, Overview of the European Residential Market

FAQ on the subject

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