Barcelona and Seville
Although eternally popular with tourists, Barcelona enjoys minimal yields.
With good flight connections and price cheaper than the national average, Seville is becoming increasingly popular with foreign investors. Recommended property types for longer-term investments are either 1-bed apartments with parking in the city centre or a 'finca' (family home) with a pool outside the city. With a huge student body in need of rental accommodation, demand here should continue to be strong.
One region tipped as a particularly good investment destination is the area around Valencia, made strong thanks to a massive programme of State and private investment which has dramatically improved the Infrastructure including a new metro line connecting the port with the airport, and a new Central station to accommodate the High Speed Train (AVE) which travels at speeds of 300km per hour and interconnects all the major cities in Spain.
Galera in northern Andalucía would suit people with a smaller budget wanting peace and quiet away from coast. Renovated cave houses are common in this area as are a range of properties in the surrounding areas from farmhouses to village houses - all in need of restoration but still cheap to attain.
Costa de la Luz, Costa Almeria, Costa Tropical
Whilst the sunny, sandy Spanish Costas are areas that have attracted the vast majority of foreign investment historically, high price and over-development mean they are no longer considered a canny investment hotspot.
Less-developed coasts such as the Costa de la Luz, the Costa Almeria and the Costa Tropical offer lower prices with greater room for development. These areas attract people looking for a more authentic experience of Spain, and a landscape less ravaged by construction. Property prices on the Costa Tropical are cheaper than on the Costa del Sol, and the area is proving popular with foreign buyers.
The Costa de la Luz is Spain's largest coast, and property here still offers good value for money, having escaped the mass tourism that affects other areas of Spain. This area couldn't be more different from the Costa del Sol, though the two are neighbours. Its golden beaches are long, wide, wild, often deserted – and more likely to be backed by sand dunes or pine trees than high-rise apartment blocks. As 30% of the region is a protected area, it has consequently remained quiet and undeveloped.
The Costa Almeria is probably the area that will be expanding most in the near future.Two places worthy of noting are Islantilla near Ayamonte and Chiclana near Cadiz which offer first-time investors good value for money.
The closest of the Canary Islands to Africa, Fuerteventura is another area that is worth watching, and is the least developed of the four main islands. Fuerteventura has the warmest year-round temperatures of the islands, with recorded winter highs of around 20C, making it a good bet for year-round holiday rentals and also giving it the potential for a 52-week rental income.