In terms of areas for investment in the Aragon and Navarra regions there are two clear cities that require your attention as potentially excellent investment opportunities – Pamplona and Zaragoza. If one takes the region as a whole, property is at a consistently lower price than much of Spain as the area has yet to be discovered by overseas property investors and most of the property is inhabited by Spanish nationals. Indeed, if you were to venture further south to the Teruel area you would find prices there to be half the Spanish national average. However, the safest areas for property investment in the Aragon and Navarra region should be considered Pamplona and Zaragoza.
Pamplona Property Investment
Pamplona, the capital of Navarra, is a compact city with narrow winding streets, which are steeped in history and strong academic ties (the city houses three universities). The city is most well known for the Fiesta de San Fermin, which attracts a worldwide audience on the 6th July. When the running of the bulls takes place there is a massive tourist influx, which can certainly help with short term rental opportunities and for longer term rentals, there is a burgeoning student population.
Property pricing has increased dramatically in Pamplona, which is not to be surprised based upon the many merits of the city such as the spectacular scenery, historic buildings, and excellent educational and conferencing facilities. Although house pricing has increased in recent years it is still recommended as a property hotspot in the Navarra region and could provide strong yields. You could expect to pay the following for average properties Pamplona -
€195,000 for a 1 bedroom property
€255,000 for a 2 bedroom property
€315,000 for a 3 bedroom property
€430,000 for a 4 bedroom property
If you sought to rent your property in Pamplona you should be looking at the following returns per week -
€290for a 1 bedroom property
€350 for a 2 bedroom property
€540 for a 3 bedroom property
€780 for a 4 bedroom property
Although if you are renting your property as part of a short term let during the Fiesta de San Fermin it is expected that you can double your standard pricing as there is huge demand from the visiting tourists.
Zaragoza Property Investment
Zaragoza is situated in the Aragon area of Spain and is the regional capital. Similarly to Pamplona the city can offer beautiful scenery with stunning views of the Pyrenees. The Romans in 14BC founded the historic city originally and there are currently approximately 700,000 inhabitants with many more commuting to the city for work.
The city is ideally situated on the main transport backbone between Madrid and Barcelona, which has helped to drive property pricing up. A factor that should be noted is that Zaragoza is not currently a major tourist destination; however, the inhabitants of some northern European nations are starting to adopt the city as a tourist venue, which could be a catalyst to propel property pricing to greater heights. The city is growing at a quick pace and there is a cosmopolitan feel to the centre of the city. On the negative side, due to the expansion there can be traffic congestion problems at peak times in the city.
The city centre boasts a number of new housing which can be expensive (certainly when looking at the region as a whole), however, if you are prepared to move slightly outside the city centre you can certainly obtain better value for money. If you were looking to buy property in Zaragoza you could expect to pay the following prices -
€165,000 for a 1 bedroom property
€250,000 for a 2 bedroom property
€400,000 for a 3 bedroom property
€600,000 for a 4 bedroom property
If you sought to rent your property in Zaragoza you could be looking at the following returns per week -
€450 for a 2 bedroom property
€660 for a 3 bedroom property
€850 for a 4 bedroom property