Commercial Real Estate in Spain

Along with the high demand for residential real estate in Spain, in recent years there has been an increase in interest among investors from around the world and in the commercial properties of the country of sun and flamenco. Why are more and more entrepreneurs seeking to establish their own business in Spain and what are the prospects for such investments compared to investing in residential real estate? In this article we will try to answer these questions.

Buying commercial real estate in Spain is a bet on the prospects. It is no exaggeration to say that one of the main pillars of the Spanish economy is tourism – and this all is said. Investing in any commercial real estate object related to tourism infrastructure, you can get excellent results in the form of income, a significant bonus which will be stability. You can look at some current properties here

The most popular types of commercial real estate in Spain

In terms of variety of objects available for purchase Spanish commercial real estate market is not inferior to the residential sector, even superior to it. Office and warehouse space, car maintenance and gas stations, retail outlets, restaurants and cafes – there are many options. And this makes it difficult for investors who have decided to buy a ready-made business in Spain. According to analysts, the TOP-5 commercial real estate looks like this today:

  • 1st place – hotel infrastructure facilities: apartments, hostels, spa hotels, luxury hotel complexes, etc.;
  • 2nd place – retail outlets, shops and centers: small shops, mini-markets, franchises of medium and large retail chains, etc.;
  • 3rd place – catering establishments: fast food, snack bars, cafes, large restaurants, etc..;
  • 4th place – objects of service sphere: fitness clubs, beauty salons, hairdressers, etc.; 4th place – objects of service sphere: fitness clubs,..;
  • 5th place – entertainment centers: golf and beach clubs, tennis courts, discos, etc.

Often businessmen from different countries who have chosen Spain as their “outpost” for doing business open their tourist offices, real estate agencies, invest in office buildings and premises, which are then rented out (the best tenants in Spain are considered to be representatives of government agencies). Logistics companies, warehouses, petrol stations and car washes are also popular. Land is always quoted, especially large plots for development of hotel and residential complexes. There are also investors who are not afraid to open their own production in Spain – the most popular activities can be called the production of olive oil and wine.

Commercial real estate in Spain: yields, minuses and pluses

The average profitability of business in Spain is estimated by experts at 5-7%. The minimum is 3%. Maximum – 10%. These figures are equated to the average level of profitability and apply to all types of business from car washes to passive income from renting commercial real estate. Despite the apparent modesty of these indicators, investment in Spanish business pays off with the stability of income and growth of the economy, steadily rising after the crisis of 2008-2015. 

Only in Spain credit conditions for residents and non-residents of the country are almost the same. Only here for foreigners wishing to become owners of their own business, there are no obstacles and high state fees for the purchase of real estate. This country is the most economically open state in Southern Europe. Here, excellent conditions for investors from other countries combined with a high standard of living and phenomenal tourist flow.