Where in Spain is it better for Ukrainians to buy real estate

The Spanish real estate market remains one of the most active in Europe. Buyers can choose from a wide range of properties across various price segments. At the same time, housing prices depend directly on the region and the type of property. Therefore, there is no single answer to the question of where it is best to buy property in Spain. When choosing a region, you should primarily consider the purpose of the purchase and, of course, your budget.

Best Locations in Spain

Considering factors such as developed infrastructure, transport accessibility, comfortable living conditions and property prices, Madrid, Barcelona, Valencia, Alicante and Malaga are among the locations worth considering first.

Madrid

Spain’s capital, located in the centre of the Iberian Peninsula, is a symbol of modern urban life and the heart of the country. Its well-developed transport network, one of Europe’s largest airports, museums, palaces, parks and cultural life attract thousands of visitors. Property in the capital is among the most expensive in the country, but it is also the most liquid, and many owners generate regular income by renting out their homes.

Who is Madrid suitable for?

Madrid is suitable for investors interested in long-term rentals and capital preservation, as well as professionals and families planning to live and work in the capital. It is a city for careers, education and business.

How much does property cost in Madrid?

The average price of resale housing in the capital is €6,547/m²: a 60 m² apartment costs approximately €390,000, while an 80 m² apartment costs around €520,000. For comparison, prices in the wider Madrid province are lower at €5,135/m². When new developments are included, the average price in Madrid is higher, at approximately €7,300/m².

Rental demand and yields

Rents in Madrid are the highest among Spanish cities at around €23.2/m² as of July 2026, up 5.8% year-on-year. A 70 m² apartment rents for approximately €1,600 per month. Gross rental yield is around 4.7%, below the Spanish average, but demand remains stable throughout the year and liquidity is the strongest in the country. Apartments close to metro stations, the city centre and business districts tend to perform best as rental properties.

Pros and cons of buying property in Madrid

Pros: maximum liquidity, stable rental demand, developed infrastructure and excellent transport connections. Cons: some of the highest property prices in Spain, relatively moderate rental yields and no access to the sea.

Barcelona

The capital of Catalonia is one of Spain’s leading innovation centres and offers significant investment potential. Property in Barcelona is in demand among both tenants and buyers. The city is home to leading universities, business schools and international educational institutions, attracting international residents for both business and education.

Who is Barcelona suitable for?

Barcelona is suitable for families and students, professionals working in technology and business, and investors interested in long-term and student rentals. It is a strong choice for those who want urban life by the sea, although buyers should be prepared for dense development and high levels of tourism.

How much does property cost in Barcelona?

Housing costs approximately €5,449/m² as of July 2026, up 6.8% year-on-year. A 60 m² apartment costs an average of around €327,000. Property in the wider province is considerably cheaper, at approximately €3,478/m².

Rental demand and yields

Average rents are around €20.1/m², meaning a 70 m² apartment costs approximately €1,400 per month to rent. Gross rental yield is around 5.2%. One important consideration is that tourist rentals in Barcelona are subject to licensing regulations, so investors should primarily calculate returns based on long-term and student rentals.

Pros and cons of buying property in Barcelona

Pros: strong demand from students and business professionals, higher rental yields than Madrid and proximity to the sea. Cons: high property prices, restrictions on tourist rentals and, for permanent residents, dense development and significant tourist traffic.

Valencia

Valencia offers more accessible property prices than Madrid and Barcelona and is becoming increasingly popular among international buyers, while still providing strong opportunities for work and education. The city attracts tourists with its beaches and distinctive architecture, while its combination of historic heritage and natural surroundings adds to the region’s appeal. In 2026, Valencia is one of the most dynamic property markets in Spain.

Who is Valencia suitable for?

Valencia is suitable for families looking for a balance between price and quality of life by the sea, students due to the city’s large academic community, and investors expecting continued property price growth. In practice, Valencia offers Mediterranean city living without capital-city prices.

How much does property cost in Valencia?

The average property price in the city is €3,485/m², a historic record and an increase of 8% year-on-year. A 70 m² apartment costs approximately €244,000.

Rental demand and yields

Average rent is around €16.3/m², up 3.7% year-on-year. A 70 m² apartment in Valencia rents for approximately €1,140 per month. Demand is supported by both students and tourists. Gross rental yields are generally close to the Spanish average of 6.5%, while one of the city’s main attractions for investors is the potential for further capital appreciation.

Pros and cons of buying property in Valencia

Pros: one of the strongest rates of property price growth in Spain, access to beaches and the sea, greater affordability than Madrid and Barcelona, and strong student demand. Cons: restrictions on tourist rentals, hot summers and rapidly increasing property prices.

Alicante

The province of Alicante stretches along much of the Costa Blanca, from Denia to Torrevieja, and attracts large numbers of tourists. Business along the coast is heavily focused on tourism and related industries. Urban development continues across Alicante, while the resale market also includes properties that already hold tourist rental licences.

Who is Alicante suitable for?

Alicante is suitable for buyers purchasing property for tourist rentals or seasonal use, retirees looking for affordable housing near a warm sea, and investors with a more limited budget. Its long swimming season from May to October and warm coastal waters distinguish Alicante from many other Spanish coastal regions.

How much does property cost in Alicante?

The average price across the province is €2,744/m², up 6.6% year-on-year. The provincial average is slightly higher than in Alicante city itself due to expensive coastal resort municipalities. In Alicante city, prices average €2,705/m², representing a historic high and an annual increase of 6.6%. Torrevieja remains more affordable at approximately €2,400–€2,600/m², and two-room apartments can be found from around €90,000.

Rental demand and yields

Rental prices in the province are rising faster than the national average. In Alicante city, rents increased by 8.6% year-on-year. Average rental prices are around €13.8/m². Demand comes from tourists as well as international residents who spend the winter in the region, helping properties maintain strong occupancy for much of the year. Short-term rental yields along the coast may significantly exceed the Spanish average of 6.5%, particularly for properties close to the beach or on the first line.

Pros and cons of buying property in Alicante

Pros: accessible property prices, warm sea and a long season, strong tourist demand and popularity among international buyers. Cons: seasonal rental demand in certain locations, a tourism-oriented economy and a more limited labour market for those planning to live permanently in the region.

Malaga

The province of Malaga is a centre of premium tourism and one of the most prestigious coastal locations in Spain. Prestige and comfort are key priorities in the local construction sector, and many properties offer well-designed zoning, practical layouts and a high level of functionality. In 2026, Costa del Sol remains one of Spain’s leading destinations for tourist rental performance.

Who is Malaga suitable for?

Malaga is suitable for buyers in the premium segment, particularly those considering Marbella, Estepona and surrounding areas, as well as investors interested in tourist rentals and buyers who enjoy golf or yachting. Malaga city itself is also suitable for permanent residence, as it is one of the country’s most dynamic cities and has an international airport.

How much does property cost in Malaga?

In Malaga city, the average property price is €3,937/m². The average across the province is higher due to expensive coastal municipalities, particularly Marbella, where prices are around €5,900/m². Property prices increased by 6.9% over the year. The average property value is around €550,000.

Rental demand and yields

Rents are among the highest in Spain at approximately €16.4/m², up 2.5%, reflecting strong demand. Costa del Sol consistently ranks among the leading locations for tourist rentals. For short-term tourist rentals, properties on or near the first line of the coast tend to be preferred, while Malaga city centre is often more suitable for permanent residence.

Pros and cons of buying property in Malaga

Pros: premium status, very strong short-term rental demand, property price growth, an international airport and developed infrastructure. Cons: high prices along the coast, especially in Marbella; sea temperatures are somewhat cooler than on the Costa Blanca, with the most comfortable swimming conditions concentrated in peak summer, while Alicante generally offers a longer swimming season from May to October.

Property Investment Opportunities in Spain

Many buyers of Spanish property focus on generating passive income and purchase homes specifically for rental purposes. Demand for rental apartments in Spain exceeds supply, particularly in large cities, and Spanish apartments are often rented out faster than they are sold.

Tax incentives add to the attractiveness of the Spanish rental market. Individuals who are Spanish tax residents and rent residential property for tenants’ permanent use may benefit from reductions in taxable net rental income. For agreements signed before 26 May 2023, a 60% reduction remains applicable. For newer agreements, the standard reduction is 50%, although under certain conditions it may increase to 60–70%, and in officially designated high-pressure housing market areas, potentially up to 90%.

Apartments with two or three bedrooms are among the most popular with tenants. One-bedroom properties also remain in demand, although tenant turnover is typically higher.

Market analysis shows that the most profitable properties tend to combine several key characteristics:

• high-quality and functional living space;
• a private parking space;
• good transport accessibility;
• proximity to urban infrastructure;
• an advantageous property location.

Average residential rental yields in Spain currently stand at around 6.5%, reaching up to approximately 7.4% in some cases.

Property prices also continue to rise, with leading cities recording annual growth of 8–13%. This makes Spanish property attractive for investors seeking capital appreciation as well as rental income, although resale profitability depends heavily on the timing of entry into the market.

Large investors are increasingly focused on developing residential complexes specifically for rental purposes, including both standard apartments and student housing. In some cases, tenants may also have access to rent-to-own arrangements.

Spain also offers residential condominium-style developments with additional services such as on-site medical staff, emergency call systems, physiotherapy and wellness programmes. These services are particularly attractive to affluent retirees who want to live in residential communities with continuous access to medical support.

How to Choose a City in Spain for Property Investment

To decide where to buy property in Spain, the first factors to consider are your objectives and budget. If your goal is capital appreciation through resale or income from rentals, Madrid and Barcelona remain the leading markets in terms of demand, followed by Valencia, Malaga, Alicante and Tarragona. In these regions, demand traditionally exceeds supply, which means liquid properties tend to rent and sell relatively quickly.

If you are looking for an affordable apartment near the Mediterranean, Torrevieja on the southern Costa Blanca is worth considering. A two-room apartment can be purchased from approximately €90,000. Overall, Spain’s Mediterranean coastline remains highly popular with both domestic and international buyers.

Submit your preferred property criteria and purchase objectives through our website, and our managers will prepare a selection of properties tailored to your requirements and budget. The specialists at licensed real estate agency Deniz Estate will assist with the documentation required for your property purchase and help ensure the legal security of the transaction.