To qualify for a Spanish residence permit under the “golden visa” program, you can choose any type of real estate. If there are no restrictions, the question arises: what is more profitable? Buy a villa by the sea, several apartments, or maybe a retail space? We consider the options, advantages and risks of investing in different types of objects. At the end of the article there is a comparison table.
“Golden visa” of Spain: main conditions
The Spanish property market is growing despite the economic downturn in the eurozone. Prices are rising, as is foreign demand. According to official statistics for the first half of 2023, foreign buyers account for almost 68 thousand transactions. This is 21.4% of total sales and one of the best figures in the last decade.
Buyers from outside the European Union are often attracted to the Spanish market precisely by the “golden visa” program. This is one of the few ways to obtain a residence permit for the purchase of real estate that continue to work stably, including for Russians.
The investment program has been operating in Spain since 2013 and makes it possible to obtain a residence permit for two years with the possibility of further extension for five years. To do this, you need to invest an amount of €500 thousand in one or more real estate properties of any type.
Since a residence permit can be issued for the purchase of both residential and commercial real estate, which one should you choose?
Commercial real estate
Options
The threshold for entry into the commercial real estate market is noticeably higher than the residential one.
In resort regions with liquid properties, for €500 thousand you can buy a small premises with an operating business, retail or office, with an area about 50 squares. In this case, the profitability will be low. The rent for such an object will average €2 thousand per month, that is, about 5% per annum. The best profitability indicators are for objects with a higher price tag.
If we talk about warehouse space, which is now the most promising, high-quality options with well-established logistics are not so easy to find. And the cost is from €1.5 million.
Margarita Anikyeva director of VYM Canarias
It is better to look for commercial real estate only in two cities in Spain – Madrid and Barcelona. Naturally, not in the outskirts, but on the central streets, in areas where all this can be rented out without any problems. There are no prices up to €500 thousand. Office space costs €1 million and above.
If we talk about resort regions, the entry threshold is lower here, and now rentals are going well. But we must understand that business premises are an unstable category. A lot of offices are idle. We should issue a decree in the Canary Islands that will allow these premises to be converted into residential ones. With this in mind, you can take a closer look at the offices.
Important to know!
Golden visa applicants will in any case need to buy or rent housing. According to the terms of the program, the applicant must have a place of residence in Spain, where he will be registered. Thus, when choosing a commercial property, your barrier to entry will be much higher. After all, in addition to the investment option, you will also have to somehow solve the housing issue.
Profitability
According to the Idealista portal, in 2023, the highest rental income among all types of real estate was provided by offices – 11.8% per annum. In second place are retail premises with 9.9% per annum.
In Valencia, offices bring 7.9% per annum, retail premises – 8.5%. In Barcelona, rates are 7.9 and 8.4%, and in Madrid – 7.3 and 8.2%, respectively.
The average profitability of housing in the same locations is lower.
Important to know!
Unlike residential, in the commercial real estate sector there are no restrictions on the growth of rental rates. Price changes are dictated solely by the market.
Capitalization
The pandemic hit the Spanish commercial real estate market hard: at the height of the coronavirus crisis, sales fell by 30–70% depending on the segment, followed by prices, although less significantly. Today the market is slowly recovering, but much slower than the housing market. Average prices for “commerce” are only approaching 2019 levels. High interest rates on loans do not contribute to rapid growth.
We must understand that in the commercial real estate sector it is not entirely correct to focus solely on general price trends. Because the cost of a particular property varies greatly depending on the presence or absence of an already signed lease agreement and its duration. The same store with and without a 15-year lease contract will be sold at different prices.
Advantages
The main advantage of choosing a commercial segment is the reliability of the tenant. You work not with individuals, but with companies, many of which are multi-billion dollar corporations. For example, banks or retail chains.
An investor usually purchases an object with an already concluded agreement. At the same time, long-term contracts for 10–30 years with mandatory performance from two to five years are common in Spain.
Pavel Maslov CEO Estate Barcelona
In the contract payment of compensation is provided if the tenant leaves the premises early. And in the absence of timely payment, it is easier to evict tenants of commercial real estate than in the case of housing.
Risks
The coronavirus has greatly impacted the commercial real estate market. Organizations switched to remote work, consumers began purchasing goods online en masse. Even after the end of the pandemic and the lifting of restrictions, not all of yesterday’s tenants returned to traditional work.
Demand in the commercial real estate sector is no longer so stable, making long-term forecasts has become much more difficult. The housing segment, by comparison, turned out to be much more resistant to the latest crisis.
Examples of commercial real estate that is currently for sale 680,000 € Store in Barcelona, Spain 333 m2 5.03% per year Ready business“Approved Investment” VelesClub Int. – commercial premises in the Gràcia district of Barcelona. The area has a high level of prosperity. The facility is one-story with an area of 333 m². The current tenant is the famous Spanish supermarket chain Condis. There are more than 400 points of this network in Catalonia. With… VelesClub Int. 2,800,000 € Commercial real estate on the Costa Blanca, Spain New building with apartments in the center of Barcelona – the capital of Catalonia, Spain, built in 2016. The apartment has air conditioning, built-in wardrobes, double glazing, an outdoor terrace with breathtaking views of the Mediterranean Sea and the historical center of Barcelona. The house is equipped with an elevator and security system. On the territory owned by… Mercury Group 3,000,000 € Hotel, hotel on the Costa Blanca, Spain We bring to your attention a hotel with mountain views in Calpe, Spain, Costa Brava. The resort town of Calpe is famous for the Peñon de Ifach mountain, whose height is 322m. The hotel has 42 rooms, each with stunning views of the flowering gardens and mountains of Spain. The hotel is equipped with an elevator, air conditioning, dining area, bar, security… Mercury Group 35,000,000 € Investment project in Barcelona, Spain Five-star boutique hotel with breathtaking views of Barcelona and the Mediterranean Sea located in a prestigious area on Mount Tibidabo. This is an ecologically clean green area with observation decks, numerous parks, beautiful historical buildings, and luxury boutiques. Distance from the center of Barcelona is 3 km, from El Prat airport – 20 minutes…. Mercury Group 4,650,000 € Hotel, hotel on the Costa Blanca, Spain We are selling an apartment hotel in Torrevieja, Alicante province in the south-eastern part of Spain on the Costa Blanca, famous for its Mediterranean climate and beaches. The hotel is located on the 1st coastline with stunning sea views. The hotel has 25 comfortable apartments. There is a swimming pool, a relaxation area, a bar, a cafeteria, a gourmet restaurant with a view… Mercury Group 7,000,000 € Hotel, hotel on the Costa Blanca, Spain We present to your attention an Aparthotel in the city of Torrevieja, Alicante province in the south-eastern part of Spain on the Costa Blanca, famous for its Mediterranean climate and beaches. The hotel is located on the 1st coastline of the beach with stunning sea views. The hotel has 49 apartments. All apartments have a kitchen with a refrigerator,… Mercury Group 890,000 € Office on the Costa Blanca, Spain 400 m2Restaurant for sale on the seafront in Torrevieja, Costa Blanca, Spain. Total area 400 m2, corner location. 50 m from the sea. The restaurant consists of a common room with a bar counter, a separate kitchen, two toilets, and a shower. There is a semi-basement room in which you can make a 24-hour shop or an Irish pub, a terrace of 150 m2. The entire package of documents… Mercury Group 3,700,000 € Hotel, hotel on the Costa Blanca, Spain 2500 m2 Three-star hotel in working order, open to tourists all year round. Has 40 rooms, 36 doubles and 4 family. All rooms have complete baths, air conditioning/heating, LCD TVs, laminate floors, minibar, WI-FI. 27 rooms have terraces overlooking the sea. The hotel has a cafe, restaurant, reception, lounge, lounge… Mercury Group 16,000,000 € Office in Costa Blanca, Spain Product type: Retail park in Teulada, province of Alicante. Zone: The city of Teulada is one of the main tourist areas in Marina Alta in the province of Alicante, with highly developed tourism and a high level of shopping opportunities. Product: Commercial zone with an area of 14,000 M2, with parking of 1,000 parking spaces, 300 of them covered…. Mercury Group 12,500,000 € Office on the Costa Blanca, Spain Commercial investment product This is a commercial property rented by a chain throughout the country. Population ; Benidorm building; Plot 9,900 m2 (sales area), 5,072 m2t (warehouse and extensions) 4,316 m2 Contract date, February 24, 2016 Contract for 20 years (8 years of mandatory compliance) Annual rent: 815,868… Mercury Group 16,000,000 € Office on the Costa Blanca, Spain Shopping park in Teulada, province of Alicante. The city of Teulada is one of the main tourist areas in Marina Alta in the province of Alicante, with highly developed tourism and a high level of shopping opportunities. Commercial zone with an area of 14,000 M2, with parking of 1,000 parking spaces, 300 of them covered. Annual rental income (excluding VAT… Mercury Group 13,147,800 € Office on the Costa Blanca, Spain We are talking about a commercial network that successfully operates throughout Spain. City: Benidorm Building: total area: 9.900 M2 Lower floor: premises for exhibition/sale of goods 5.072 M2 Upper floor: Warehouse and office premises 4.316 M2 Lease contract for 20 years, of which 8 years are mandatory. Rental start date:… Mercury Group 1,700,000 € Hotel, hotel on the Costa Blanca, Spain We present to your attention a mini-hotel of historical ancestral character, which has its own enclave in Altea. Situated a few minutes from the sea, it was built at the end of the 19th century and has become an integral part of the landscape of the city of Altea. The mini hotel has 11 rooms, a swimming pool, a garden with an area for events. High occupancy rate of mini… Mercury Group 295,000 € Office in Barcelona, Spain 113 m2 Possibility to use for hosting your own business or obtaining high profitability from rental. EuropaHome 2,509,000 € Cafe, restaurant in Barcelona, Spain Famous restaurant in a very popular part of Parallel, near the famous Molina cabaret, the Apolo and Victoria theaters, the passenger port – piers where cruise ships moor and the “Barcelona Broadway” The area of the fully equipped and functioning restaurant is 320 m2, for sale in connection when the owner retires. The lot includes: business,… EuropaHome 477 225 € Shop in Barcelona, Spain The commercial real estate department of the EuropaHome agency offers: Commercial space 100 meters from the University metro station, 700 meters from Plaza Catalunya. The room has an area of 179 m2, ceiling height 4.5 m. The premises are suitable for any commercial activity. Estimated rent 2.250 € + VAT Property tax 1.432 € per year… EuropaHome 344,000 € Office in Barcelona, Spain Barcelona city center, 1 km from Paseo de Gracia. Nearby are 2 metro stations and several bus lines. Gràcia district, a fashionable area of Barcelona with a large number of offices, boutiques, small restaurants and cafes. A small office center on the ground floor, leased to a management company, is for sale. Area 172m2, divided into… EuropaHome 2,399,000 € Hotel, hotel in Barcelona, Spain Five spacious apartments, three of 90 m2, two of 45 and 50 m2. One apartment with a terrace of 90m2. Fully equipped building, high-speed Internet, CCTV cameras, etc. The apartments are in excellent condition, furnished and equipped with everything you need. The price includes: real estate (ownership), licenses and transfer of already concluded… EuropaHome 16,000,000 € Commercial real estate in Barcelona, Spain 3 star hotel in Barcelona. Number of rooms – 80. There is an operator ready to take control of the hotel. The contract is signed at the time of purchase and sale for a period of 20 years + 5 + 5. The mandatory period of execution is 10 years. The first year the rental amount will be 774,720 euros. For the second year, the rental amount will be 806,400 euros. Third year… ESTATE BARCELONA 1,600,000 € Commercial real estate in Barcelona, Spain 686 m2 Commercial space overlooking the Sant Pau Clinic in the Sant Martí area of Barcelona. Total area 686 sq.m. Large front part. The contract was signed with a well-known supermarket chain. Rental amount per year is 84,000 euros. The communidad quota in the amount of 840 euros per year and the property tax in the amount of 4344 euros per year are paid by… ESTATE BARCELONA 
