Why is the region of Murcia increasingly popular with investors? Find out the reason behind the local real estate market upswing and why it is worth taking advantage of!
While Murcia is a closely guarded secret among Spaniards, it is quickly becoming a top destination for international real estate investors. Its location, development potential, very affordable real estate prices, modern infrastructure and tax breaks make it a desirable option. The guarantee of investment security on the sunny Spanish coast, authenticity and freedom from mass tourism make Murcia the perfect location for business-savvy buyers.
Located between Andalusia, Castilla-La Mancha and Valencia in the south-eastern part of the Iberian Peninsula, this small autonomous coastal community covers an area of 11,317 square kilometres. The region is known for its 170 kilometres of beautiful coastline, delicious Mediterranean diet and fascinating cities. Its rich history dates back to Roman times, when Murcia was part of the Caliphate of Cordoba and Al-Alandalus; it wasn't until the 13th century that it became part of Christian Spain.
Costa Cálida literally means "warm coast," and it certainly lives up to its name. Here you'll find paradisiacal white sand beaches, lively harbours, wild coves with crystal clear waters, rocky shores and steep, craggy cliffs. Many of these places have been declared Protected Natural Areas, where you can still find unique species of flora and fauna.
The Costa Cálida is a great holiday location at any time of the year.
Murcia has a unique microclimate created by the mountain ranges in northern Alicante, which shield it from the cold air and limit rainfall.
According to the World Health Organization, Murcia has the healthiest climate in Europe. The region is a year-round holiday destination, with an average of 325 days of sunshine a year and water temperatures around five degrees higher than the rest of the Mediterranean.
Water sports enthusiasts will find great spots for sailing, kayaking, swimming, water-skiing, jet-skiing, fly-surfing, windsurfing, catamaran sailing and much more at the numerous clubs, ports and sailing schools.
Heading inland, you'll find areas ideal for those seeking relaxation, nature, sports and good food. Adventurers can kayak down the river, explore the many caves, go climbing, hike and ride horseback. Cyclists enjoy miles of quiet, well-paved country roads, and the coastal paths and boardwalks are ideal for strollers.
For golf enthusiasts, the region of Murcia boasts many world-class courses to suit every style and skill level. Highlights include La Manga Club and the PGA Championship Course of El Valle. Other quality courses are La Torre Golf, La Serena, Roda Golf, Mar Menor Golf, Hacienda Riquelme and Alhamar Golf Resort.
The province is often called the "Garden of Europe," thanks to its fertile lands where some of Spain's best fruits and vegetables (exported throughout the continent) are grown.
The city of Murcia is famous for its "huerta" - a surrounding zone of market gardens dating back to Moorish times, which provide restaurants with excellent fresh produce and fuel a vibrant tapas scene.
Abundant and varied seafood from the Mar Menor and the Mediterranean, as well as game and mountain-raised meat, complete the delicious culinary experience that awaits you. Forget chorizo, paella and sangria - Murcia has its regional delicacies like any other part of Spain. Local favourites you must try include:
Alcachofas de la Abuela, or "grandmother's artichokes," are a regional speciality found only in Spanish restaurants that stick to traditional cooking techniques. Artichoke hearts are cooked in a rich beef broth, best absorbed with plenty of bread.
Another highly recommended dish is the creamy Pisto Murciano, a ratatouille-style dish consisting of onions, tomatoes, peppers and aubergine.
The region is famous for its desserts. Be sure to try Cuerno (croissants with meringue) and Murcia's flagship delicacy Paparajotes – made with breaded and fried lemon leaves.
Diverse cities with a fascinating history.
Over the centuries, many cultures have left their mark on Murcia, especially in local towns.
Art, cuisine, and culture reflect five hundred years of Islamic rule. Moorish, Renaissance, Gothic and Baroque-style buildings sit side by side, creating eclectic and exceptionally beautiful architecture.
The city is also known for its folklore and spring festivals celebrating agriculture. The highlight is Holy Week in April, an annual festival dedicated to the city's patron saint, La Virgen de la Fuensanta. If you like a carnival atmosphere, February is a great time to visit, dress up in colourful costumes and participate in the attractions.
Carthage is home to the impressive Roman Theatre and the Roman Forum, one of Spain's largest Roman archaeological sites discovered in the late 1980s.
Lorca, known as the "city of the Baroque," is steeped in history. It was home to a large Jewish community in the 15th century, and it's here that you'll find the Jewish Quarter and the only untouched historic synagogue in the country.
The province houses many ruins and archaeological sites, not to mention ancient cave paintings from the Iberian period.
Natural Spas.
One of Murcia's unique features is the natural thermal springs, such as the Balneario de Archena – which was used as early as Roman times – and the salt plains of San Pedro del Pinatar with mineral-rich mud baths nearby. This is the most important wetland area in the region. Flocks of flamingos and other migratory birds can be found here, arriving in late summer to overwinter.
One of the most popular spots in Murcia is La Manga (the sleeve), a strip of land that almost completely separates the Mediterranean Sea from the Mar Menor, the largest (covering 170 km) saltwater lagoon in Europe. The water here is only 7 meters deep at its lowest point and is surrounded by miles of sandy beaches. The Mar Menor is a popular destination for recreational sports, fishing and beachcombing. Its warm waters, high salinity and healing properties of the local mud are highly valued.
The unique climatic conditions in and around the Mar Menor have resulted in clay deposits containing many positive ions (calcium, magnesium, potassium and fluorine) and negative ions (chlorine and sulphate). These ions form a healing mud when combined with the extremely fine sand. They can be found in many places on the outskirts of the Mar Menor, such as at Las Charcas or Banos de Lodo in San Pedro del Pinatar and on the salt plains of Marchamalo at the southern end of La Manga. Banos de Lodo are recommended natural remedies for arthritis, rheumatism, bone fractures, and skin diseases. In addition, they work as excellent beauty treatments.
Infrastructure and development potential.
Murcia surprises with its modern infrastructure, including high-speed trains, highways and the Región de Murcia International Airport in Corvera (about 25 km from the city centre). The economy here is growing – with agriculture, tourism and technology dominating. The region has seen increased foreign investment in recent years, which the government has actively promoted.
Is Murcia safe?
Murcia is one of Spain's safest and friendliest regions, with a low crime rate and a well-trained police force. Fewer tourists mean less petty crime and the small size of the capital city, combined with the presence of universities, contributes to the sense of security.
Murcia's higher education system is represented by four universities offering 98-degree programmes. Due to the high student intake each year, there is a great demand for housing, and Murcia has one of the highest rental yields in Spain!
Attractively priced and diverse real estate market.
Compared to other popular destinations in Spain, Murcia offers properties at very affordable prices. This makes it a wonderful location for personal use and passive rental income. There is something for everyone in this region, from traditional Spanish homes to modern apartments, villas and condos in bustling cities.
Tax benefits.
Spain offers tax benefits to real estate investors. These include a reduced VAT rate for new properties and a flat income tax rate of 19% for non-residents who earn income from property rentals. In addition, investors can take advantage of attractive tax breaks.
Murcia's potential and investment forecasts for this year are encouraging.
Foreign investment in Murcia's real estate market is rising, particularly among buyers from the UK, Germany and Scandinavia. The Mediterranean's affordable lifestyle and lower property costs translate into growing demand for holiday homes and rental properties, which creates promising investment return opportunities.
Buying a Spanish property is currently an excellent investment option. In the third quarter of 2022, property sales to non-Spanish individuals increased by almost 16% (according to a report by the Association of Real Estate Registrars), the highest in 10 years! The Bank of Spain predicts that the Spanish real estate market will achieve a return of 10% in 2023.
According to the European Investor Intentions Survey 2023 report, Spain currently ranks 4th among countries with the highest capital growth. Madrid and Barcelona are 5th and 6th, respectively, on the list of markets expected to generate the most interest from international investors.
Idealista reports that rental profitability in Spain is growing by double digits year after year. Long-term rentals yield a net profit of 4.5% per year, while short-term rentals (holiday homes) are much more profitable and already yield double-digit returns. According to Inviertis, rental prices in Spain will increase by 6% in 2023.
Real estate on the Costa Cálida should remain a safe investment option throughout 2023. In the Murcia region, prices of residential properties for sale increased by 10.18% from March 2022 to February 2023, with an average asking price of €1,472 per square meter in February 2023. The average asking price of rental properties in the region increased by 5.82% from March 2022 to February 2023, with an average of €7.27 per square meter per month. La Manga del Mar Menor had the highest asking price for rental properties in February 2023.
To sum up, Murcia's real estate market is booming thanks to its strategic location, excellent infrastructure, affordable prices for properties and attractive lifestyle. The tax advantages offered to investors and the investment outlook, especially for rental properties, are also encouraging people to buy.
If you have any questions about investing in Murcia or want to discuss an investment strategy tailored to your needs, write to me!
Edyta
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