Not many people know that Spain is actually the third most visited country in the world by tourists, just after France and the US. Even though the beaches in Spain are very popular, Catalonia was actually the most visited region in 2016. According to Spain-Holiday.com the top 5 regions were:
- The Balearic Islands
- The Canary Islands
Tourism in Spain increased by 10% from 2015 to 2016. The amount of visitors to Madrid increased by 7.5%. About 22% of all tourists are from the United Kingdom, 16.5% are from France and 13% are from Germany. Many of these tourists from up north where it’s colder and not so sunny are coming down to the beach for vacations. Madrid, however, even though it has no beaches, is always flush with foreigners visiting the Spanish capitol, usually from countries that are further away. In 2016 Madrid received 75 million foreign tourists!
Renting to International Students in Madrid
A big segment of the tourist population to Madrid is drawn in by the many international universities and study abroad programs in Madrid. Madrid is famous for its party lifestyle and provides direct access to many neighboring European countries students also visit while residing in Madrid.
A study done in 2014 showed that 1.41 million students were enrolled at a Spanish University with 64% of them living at home, the other 36% needing housing. Acquiring investment properties near major Spanish Universities like La Complutense or La Autonoma in Madrid is a good option for securing rents from international students. There is usually no issue with payments as these students are still being provided for by their parents. The downside to renting to students is that they frequently leave in summer, causing more turnover than renting to a family or working individual.
Renting to Madrid Travellers with AirBnb
The rise of Airbnb has brought about more property investing in the Spanish capital, especially in the more centric areas of the city. Prices can start from €20 for a small room to €100 for an entire apartment for one night.
New technology is making it easier to manage the constant turnover of running an AirBnb apartment with electronic boxes with keycards and password codes for entering and leaving the premises, and of course, payment is made online.
Running an AirBnb in Spain is subject to legal requirements. Owners must acquire a license verifying that the property is fully equipped and satisfies the sanitary requirements. Non-residents pay 24% on their Spain rental income.
You can visit tranio.com for more detailed information on requirements for running an AirBnb in Spain.
Renting to Professionals in Madrid
Due to its size and the fact that almost every multinational company on the planet is also in Madrid, many professionals are sent to Madrid for short term or temporary stays from 6 months up to 3 years. Here at Europe Real Estate we are often contacted by companies who need to find housing for their international employees coming to the city.
One of the most popular areas for many of these professionals, especially when they come with their families, is La Moraleja. Acquiring properties in an area like this is a steeper investment but it can provide a healthy return for less hassle. One rent from a location like La Moraleja or other prime locations in Madrid can generate between 2500-5000€ per month in rent money.
As you can see, there are many options when it comes to investing in Madrid real estate. In 2017 prices are finally increasing again and you will always have renters in this big vibrant city. It’s just a matter of choosing what type of property investment in Madrid suites you.