Date Published: 27/03/2025

Risky business: Buying a squatted Spanish property to save 60%

There are currently more than 20,000 squatted apartments on the market in Spain

Would you take a gamble on a property that was sale for with in-house squatters if you thought it would save you thousands, or even tens of thousands, of euros? It’s a risky proposition, but one more and more investors feel is a risk worth taking, especially since the anti-squatting laws in Spain are finally starting to swing in favour of landlords.

Without question, there’s a property crisis in Spain and buying a second-hand home has never been more expensive than it is now. Faced with growing demand and scarce supply, property prices have skyrocketed recently, breaking records month after month.

According to data from the real estate portal Idealista, 2024 ended with an 11.2% increase in the price of second-hand housing, with the average cost per square metre reaching an incredible €2,271 euros, a new historical high.

This situation has given rise to a rather unlikely alternative to purchasing a cheap house: buying a property that has squatters in situ.

There are currently more than 20,000 squatted apartments on the market in Spain, representing 2.6% of all homes for sale. And for the risk-takers among us, there are serious bargains to be had.

The big advantage of buying a squatted apartment is the price. In cities like Madrid and Barcelona, the savings are close to 60%, while in others like Sevilla and Murcia, homes are even cheaper.

But naturally, there are also downsides. First of all, when purchasing a squatted apartment, you won’t be able to get inside to check the condition. Once you succeed in getting the illegal tenants out, the property could be in a far worse state than you first thought.

Related to this, investors wanting to snap up a budget squatted apartment will have to fund the project themselves, since banks won’t offer a mortgage on a property without a full appraisal.

And now to the obvious concern – removing the unwanted squatters. Repossessing a home in Spain is anything but easy or quick and usually involves a costly legal process. But a new law is about to come into force that could change all that.

The new legislation is focused on getting owners back their squatted properties within 48 hours of reporting the illegal occupation. Crucially, the 48-hour deadline would apply without delay, even in cases where the squatters claim to be vulnerable, with the idea that responsibility for finding alternative housing for vulnerable individuals lies with the authorities and not the property owner.

But there’s one major problem. To qualify for the fast-track system, the owner must be able to prove a situation of clear squatting or breaking and entering, such as when doors are broken down or windows are smashed.

This means it doesn’t apply to tenants who once had a lease but now simply refuse to pay rent. In this event, the owner will still have to go to court.

Investfy, a company specialising in real estate investments and offering a broad portfolio of these types of homes, maintains on its website that "the purchase of a squatted home is a risky investment that logically must involve a significant reduction in the property's price," and therefore "it can be a very good real estate investment alternative.”

Once the property has been bought, Investfy advises that the new owner can always negotiate with squatters, who "are usually open to receiving a sum of money to leave the property, and you can be sure it's left in good condition." Alternatively, you can "consult one of the many eviction companies that have been popping up lately, which promise a recovery time of around 72 hours."

In other news: EasyJet flight from Tenerife to Liverpool diverted to Santiago after medical emergency

Image: Freepik

Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox

Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)