Spain’s property market has long been dominated by major cities like Madrid and Barcelona. But in 2024, savvy investors are increasingly looking beyond the traditional urban centers and turning their attention to emerging real estate hotspots across the country.
These rising markets offer a powerful combination of:
- Lower entry prices
- Strong rental demand
- Legal flexibility
- High growth potential
In this article, we explore Spain’s most promising emerging locations for buy-to-let investment—cities and regions where the fundamentals are strong and the opportunity curve is just beginning to rise.
1. Why Look Beyond the Big Cities?
While Madrid, Barcelona, and Valencia remain excellent choices for certain strategies, investing in emerging markets offers several key advantages:
- Lower property prices mean a more accessible entry point
- Higher rental yields due to favorable rent-to-price ratios
- Less saturated markets with reduced competition
- Increased demand from relocators, digital nomads, and remote workers
- Greater opportunity for capital appreciation as demand grows
If you’re looking for long-term returns and higher relative yields, these secondary and tertiary cities deserve serious attention.
2. Top Emerging Buy-to-Let Locations in Spain (2024)
Let’s explore the most promising up-and-coming markets for investors.
2.1 Zaragoza – Affordability Meets Stability
- Average Price per m²: €1,800–€2,400
- Gross Rental Yield: 6%–7%
- Tenant Profile: Students, young professionals, public sector workers
- Rental Strategy: Long-term, mid-term
Why it’s attractive:
Zaragoza is Spain’s fifth-largest city and a growing logistics hub. With a large university population and stable demand from domestic renters, it offers high occupancy and legal clarity for long-term and mid-term rentals.
It’s also home to Amazon’s European logistics platform and has strong connectivity between Madrid and Barcelona via high-speed rail.
2.2 Alicante – Coastal Value with Expanding Demand
- Average Price per m²: €1,800–€2,800
- Gross Rental Yield: 6%–8%
- Tenant Profile: Digital nomads, retirees, remote workers
- Rental Strategy: Mid-term, seasonal
Why it’s attractive:
Alicante combines a high quality of life with relatively low property prices and growing international appeal. The mid-term rental market is especially strong, driven by the Digital Nomad Visa and expats seeking Mediterranean lifestyle without the high cost of Barcelona or Palma.
2.3 Granada – Student Housing and Cultural Tourism
- Average Price per m²: €1,600–€2,500
- Gross Rental Yield: 6%–7%
- Tenant Profile: University students, tourists, language learners
- Rental Strategy: Long-term (student), mid-term, hybrid
Why it’s attractive:
Granada’s historic appeal and large student population (over 60,000 students) make it an ideal market for long-term and mid-term rentals. With limited supply in central districts and strong cultural tourism, smart investors can tap into consistent demand and future appreciation.
2.4 Murcia – Underrated Southern Market with Strong Yields
- Average Price per m²: €1,300–€2,200
- Gross Rental Yield: 6%–8%
- Tenant Profile: Local professionals, students, mid-income families
- Rental Strategy: Long-term
Why it’s attractive:
Often overlooked, Murcia offers some of the highest rental yields in Spain, with a stable economy, two large universities, and an increasing number of businesses relocating from Madrid and Valencia due to lower costs.
The region also benefits from planned infrastructure upgrades and growing interest from Northern European investors.
2.5 Bilbao – Modern Economy Meets Cultural Heritage
- Average Price per m²: €2,800–€3,500
- Gross Rental Yield: 5%–6%
- Tenant Profile: Business travelers, professionals, students
- Rental Strategy: Long-term, mid-term
Why it’s attractive:
Bilbao has transformed itself into a modern, design-forward city, attracting businesses, creatives, and tourists alike. With strong economic indicators, improved infrastructure, and relatively low volatility, it offers a more conservative entry point into an emerging market.
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2.6 Tarragona – Coastal Growth Near Barcelona
- Average Price per m²: €2,000–€2,800
- Gross Rental Yield: 5.5%–7%
- Tenant Profile: Commuters to Barcelona, families, tourists
- Rental Strategy: Mid-term, long-term
Why it’s attractive:
Tarragona is a coastal gem just an hour from Barcelona, with historical charm, beaches, and proximity to PortAventura World. As Barcelona tightens its rental rules, demand continues to spill over into Tarragona, making it ideal for investors seeking Mediterranean returns with lower legal risk.
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3. What to Look for in an Emerging Market
When evaluating any secondary or emerging city in Spain, prioritize:
- Demand: Is there a clear, consistent demand from tenants or seasonal renters?
- Regulation: Can your chosen rental model operate legally?
- Infrastructure: Are there transport links, universities, hospitals, or corporate hubs?
- Investment in Development: Is the city investing in growth, transport, or innovation hubs?
- Exit Strategy: Will it be easy to sell or refinance in 5–10 years?
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4. Risk vs. Reward: Why Timing Matters in Emerging Markets
Entering an emerging market early can lead to outsized returns—but also carries higher risk.
Risks may include:
- Slower liquidity (harder to sell quickly)
- Fewer property managers or experienced agents
- Regulatory uncertainty if local laws change
- Dependence on a single tenant type (e.g. students)
The key is to conduct thorough due diligence, ideally with support from professionals who understand the local context.
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5. Use Emerging Markets to Complement Your Portfolio
Rather than replacing your core assets in Madrid, Valencia, or Malaga, use emerging cities to:
- Increase your average yield
- Test new rental models (e.g. mid-term or hybrid use)
- Diversify risk geographically
- Reduce acquisition costs
- Expand your property count without overleveraging
Emerging markets are ideal for investors looking to grow intelligently without competing at the top end of the market.
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✅ Need Help Identifying the Right Emerging Market for You?
Our Investment Strategy Session will help you:
- Compare emerging cities based on your strategy and budget
- Understand rental demand and legal viability per region
- Evaluate potential yields and long-term capital appreciation
- Build a step-by-step plan to enter the right market at the right time
💶 Price: €500
📅 Duration: 60 minutes
🎯 Outcome: Clarity, strategic direction, and an actionable investment roadmap
👉 Book your Investment Strategy Session here
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Spain’s property investment opportunities don’t end in Madrid or Barcelona. In 2024, emerging cities like Valencia’s sister markets—Zaragoza, Alicante, Granada, Murcia, and Bilbao—offer excellent opportunities for investors looking to maximize yield, minimize competition, and position themselves for long-term growth.
The sooner you act, the more upside you can capture.
Ready for the next city-level analysis or do you want to explore strategy-specific guides now?