Can you make money renting out property in Spain?


Can you make money renting out property in Spain?

When you are trying to decide where you would like to live or go on holiday, one of the first countries that springs to your mind might well be Spain. You would be far from alone in that; many people dream of being able to rent a villa in Sotogrande and bask in consistently warm weather on glorious sandy beaches from day to day.

It’s not hard to see why Spain has established itself as a popular getaway destination. And in today’s era of “thermal tourism” and “energy nomadism” – these terms referring to the practice of some people from colder parts of the world spending the winter months in hotter countries such as Spain – there might seem to be a lot of scope for Spanish landlords to attract interest in their properties.

So, would it be financially sensible for you to purchase some Spanish property and rent it out?

Why investing in Spanish property can reap dividends

Since COVID-era travel restrictions were rolled back earlier in the 2020s, Spain has once again cemented its popularity with visitors from nearby European countries — including the UK, France, Germany, and Belgium – as well as people from further afield, such as the United States.

Indeed, Spain’s easy accessibility is a key part of its appeal, with this Southwestern European country lying just a two-hour plane trip away from the UK.

As tourist numbers continue to grow, you could find that the rental fees you are able to command with your Spanish property grow in line with this.

Be careful where exactly in Spain you invest

Spanish areas can differ significantly in their climate and attractions. For this reason, when it comes to deciding exactly where in Spain you might buy a property, a major factor is likely to be the type of renter you are eager to target.

You may not need to be overly fussy about the property’s location if you are keen on attracting long-term tenants who might have otherwise bought a Spanish home if their finances allowed for this.

However, if you are more interested in promoting the property as a holiday home intended to facilitate short-term stays, you should probably opt for somewhere enduringly popular with holidaymakers. The famously sunny, scenic, and well-equipped Costa del Sol would be an obvious candidate.

Is now a good time to buy Spanish property?

To put a long story short, yes. As we recently wrote about here on the Property Sotogrande blog, Spanish house prices have continued to climb in recent times, even amid certain factors that might have been expected to push down levels of demand, such as high interest rates and sticky inflation. So, properties in the country continue to look like a great long-term investment.

Of course, in the case of any property you buy in Spain with a view to renting it out, you might not expect that sales prices will be of much relevance to you.

However, the more attractive your Spanish property is as a whole, the higher the rental fees you will likely be able to charge tenants of the property.

We can help you buy the perfect Spanish property to rent out

As we have made clear, a property’s location can be a meaningful factor in its success. Given the southern Spanish coast’s appeal, it could make particular sense for you to acquire a Sotogrande home that you initially come across when perusing property listings on our website.

As we bring together listings from multiple estate agents here at Property Sotogrande, we can help you quickly find a property that could represent an attractive long-term investment for you, whether or not you also intend to rent it out.

From there, you can be in an excellent position to buy the property that interests you, and to subsequently attract those who wish to rent a villa in Sotogrande.