Investment in the real estate sector, particularly in the acquisition of luxury second homes, has taken on new significance for High Net Worth Individuals (HNWI). Rather than solely focusing on rental income, these investors are increasingly centered on securing capital appreciation and protecting their wealth in the long term, within a market that poses both challenges and opportunities.
Historically, properties in established tourist areas in Spain have provided a dual return: rental yields ranging from 5% to 10% annually, alongside consistent capital growth. However, changing regulations and market saturation in cities like Madrid and Barcelona have led these investors to seek alternatives in regions that offer distinctive value, resulting in what is termed “smart investing.”
A key factor in this new trend is the state of the Spanish housing stock. It is estimated that about 70% of homes require urgent renovation, presenting a manageable risk of financial obsolescence. This issue is exacerbated by the requirements of the European Energy Performance of Buildings Directive (EPBD), which mandates that all homes for sale or rent must achieve a minimum efficiency rating of ‘E’ by 2030. Therefore, investing in older properties would entail planning for substantial future expenses, turning these assets into an economic burden.
In light of this landscape, new builds emerge as an attractive option. They not only offer high energy ratings, with labels A or B, but also ensure immediate capital gains. According to data from the Bank of Spain, properties with an A rating sell for up to 9.7% above the average price. Additionally, new construction homes allow for optimization of the Total Cost of Ownership (TCO), which reduces the risk of unforeseen expenses in the long run.
Another relevant aspect is the incorporation of technology in these new properties. Home automation systems, which facilitate remote management of rentals, coupled with modern designs that maximize the connection between indoor and outdoor spaces, elevate the standard of living and attract more discerning tenants, thereby fostering positive reviews.
Cantabria is establishing itself as a strategic destination for real estate investment, offering significantly lower entry prices compared to established luxury markets like San Sebastián, Madrid, and Barcelona. With an average new build price in the region around €2,240 per square meter, which is almost 50-60% less than its competitors, Cantabria presents robust potential for operational profitability. In high-demand areas like Suances and Laredo, gross yields are estimated to be around 9.2%.
Acquiring a new second home in Cantabria, therefore, not only enhances quality of life but also emerges as a solid financial strategy in an evolving market. The combination of guaranteed capital appreciation, high cash flows, and significant potential for value increase positions this region as a turning point for enhancing real estate wealth in Spain. Projects developed by companies like Milton Homes exemplify this philosophy, ensuring an ideal fusion of design, energy efficiency, and strategic location.
Source: MiMub in Spanish