How to choose commercial real estate for successful investments in Spain?

Spain attracts not only tourists but also large business investors. The country, with its developing economy and political stability, becomes an attractive place for investments in commercial real estate. Today, we will discuss how to choose the right property and which factors to consider when investing in commercial real estate in Spain.

Types of Commercial Real Estate and Why Investors Choose Spain

In Spain, there are several types of commercial real estate that attract investors:

Offices — for companies looking to establish their offices in major cities.
Retail spaces — shops and shopping complexes suitable for retail trading.
Hotel and restaurant buildings — hotels, restaurants, and cafes that attract tourists and locals.
Warehouses and industrial buildings — for businesses requiring storage and manufacturing facilities.

So why does Spain attract so many investors? First of all, it's stability — both economic and political. The country shows stable growth and provides favorable conditions for business. Additionally, Spain's real estate offers a high profitability rate, making it more attractive compared to other European countries. New properties in Spain also provide great opportunities for investors looking for long-term returns.

How to Choose Commercial Real Estate in Spain?

When choosing commercial real estate for investment, it is important to consider several key factors:

Property location — this is one of the most important criteria. How busy is the street? Are there transport links and parking nearby?
Economic factors — it's important to learn what income the property has generated in recent years and what the maintenance costs are. Property selection can help you choose a profitable property.
Liquidity of the property — assess how easy it will be to sell or rent the property in the future.
Condition of the property — don't forget about potential additional costs for repairs and renovations. Property reconstruction may be required for older buildings.

How to Make Money with Commercial Real Estate in Spain?

One of the attractive factors of investing in Spain is the possibility of obtaining loans to purchase commercial real estate. Banks can provide up to 60% of the property's value. The interest rate is 2-3%, and it can be paid off over 20-25 years. This allows you to increase business profitability by 2-4%.

Various types of commercial properties with different profitability rates are available in Spain:

Hotels — hotels can generate 5-7% profitability, but with proper management, this figure can reach 12-15%. Property sale can be appealing for those looking to buy with the intention of selling in the future.
Business centers and office buildings — the profitability of such properties is 4-6%, and they can be a good long-term investment.
Retail spaces — the most popular property types, with 4-6% profitability. They are characterized by high liquidity and steady growth in value.

How to Choose Commercial Real Estate with or Without a Tenant?

When deciding to invest in commercial real estate, it's important to decide whether you want to buy a property with a tenant or without one. Both options have their advantages:

With a tenant — these properties provide stable income and may be appealing for those who don't want to manage the business themselves.
Without a tenant — for those who want to create their own business or hotel, this option offers more control over the situation.

Why Invest in Commercial Real Estate in Spain?

Spain is not only known for its beautiful climate but also as a reliable place for investments. High protection of investments, a stable real estate market, and favorable conditions for business make this country one of the best places for investing in commercial real estate. With the right approach, your investments in Spain will generate stable income.

Conclusion

Investing in commercial real estate in Spain can be a profitable business if you take all the key factors into account: location, economic parameters, property condition, and future liquidity. Spain provides excellent conditions for investors, and with the right property selection, you can expect stable profits.