Brick has always been the favorite investment of the Spanish. While in other European countries savings are distributed between different financial products, here housing remains the preferred vehicle for preserving wealth. But in which places in Spain do you have the most … is it wise to invest today? What is the best way to proceed? Is it better to invest with your own money or with borrowed money?
The real estate investor and broadcaster spoke on all these subjects Jaime Gil, CEO of PropHero in Spain andcreator of the podcast ‘Jaime Gil Invest’. In one of his most notable videos in recent months, he analyzes how to choose the best areas to invest in 2025 and compares the situation with previous years.
Its market picture is clear, prices remain high and the out of stock This is becoming more and more obvious. “I’m amazed at the price some properties are sold for and how short they last on the market,” he explains. Floors barely appear in portals, and when they do appear, they fly away. At the same time, demand is increasing as investors and end-buyers look for housing in a country that continues to welcome new residents. The problem is that everyone wants to live in the same places.
Good returns are moving to the periphery
This concentration leads to a continued rise in purchase and rental prices in the main capitals and distressed areas. And, with current values, it is difficult to find investments offering attractive returns. For years, he assures, the emphasis was on buying cheap, renting more and more expensive and maintaining an attractive monthly return. But this cycle is over. What once cost 60,000 or 70,000 euros is now around 130,000 or 140,000 on the outskirts of many cities, and reaching 6% net is already complicated.
It is for this reason that many investors settle in more distant municipalities. Contagion zones where prices remain low and profitability, on paper, is high. Of course, Gil warns that not everything is happening. Going, for example, to the population where unemployment is the highest in the province or to cities that are losing inhabitants is a bad idea. The goal should be to find a real reason for the population to stay, such as industry, logistics, communications, universities… an underlying reason that supports demand even if the market changes cycles.
“The market is blowing in favor today, but it will turn around,” recalls the expert, who assures that when this happens, those furthest away will be the first to correct, unless the area has its own strength. Hence, according to him, the importance of a significant location, not only for the annual income generated by the house, but also for the potential for revaluation, the true architect of miraculous returns. Madrid, for example, reached an average of 23% year-on-year between 2024 and 2025, while other major cities exceeded 18% or 20%.
In addition to looking for good locations, Gil highlights another investment avenue like housing solutions. Flexliving, coliving, residential tertiary sectors, hotels converted into medium stays… formats which already work in the United States or in Madrid or Barcelona and which are starting to be deployed in other Spanish cities such as Valencia, Seville or Malaga. But where is a good place?
Areas with potential in 2025
Based on these criteria, Gil mentions several areas with potential in 2025. We distinguish: industrial corridors between Castellón and Puerto de Sagunto, with new industrial areas in Benavites, Almenara and La Vall d’Uixó. Also the Elche-Alicante-Murcia axis, a “magic triangle” where prices have increased, but intermediate cities continue to offer opportunities. Areas like Torrevieja or municipalities located between the capital Murcia and Alicante — Albatera, Algorfa and others — enter their radar due to the combination of growing demand and still contained values.
Some towns in the interior of Alicante could also make sense, he points out, although they require a more detailed analysis. Municipalities like Alcoy or Onteniente have universities that generate a stable flow of population, an essential element to guarantee the sustainability of investments in downward cycles.
Leverage, the pillar of a good revaluation
The other big pillar of your strategy is leverage. According to Gil, if one wants to focus on asset revaluation, borrowing smartly is essential. “If you have 100,000 euros and buy a house for 300,000, these extreme revaluations close to 20% that we were talking about before you get them with 300,000“, qualifies.
Furthermore, he points out that leverage is not limited to the mortgage, it can also be obtained through developers and new construction. He illustrates it this way: reserving a promotional property today at 20,000 or 30,000 euros in an expanding area can result in a 20% increase in value on the total value of the property upon delivery, and not just on the capital provided. “It’s very powerful at the strategic level,” he summarizes.
And in the face of all this, he barely mentions the classic fears of the Spanish investor – occupations, defaults, changes in legislation – because, according to him, they are just noise. The important thing for the expert is to use the available data, to stop investing in the city itself through inertia and to concentrate on locations with economic logic. Or, failing that, rely on companies that develop housing solutions in “privileged areas” where demand is guaranteed.
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