Investing in Real Estate in Ourense: The Complete Guide to Profiting from an Undervalued Market

Published on May 5, 2026 and written by Cyril Jarnias

Ourense ticks many of the boxes investors are looking for in Spain today: prices still low, a very high quality of life, a strong local identity, tourism potential (thermal springs, nature, wine, rural areas), and a growing influx of capital into the province. Yet the city remains largely in the shadow of the overheated coastal markets or major metropolitan areas.

Good to know:

The company has solid fundamentals but low brand awareness, making it an interesting opportunity for a patient investor comfortable with a long-term vision.

Ourense, thermal capital of Galicia… and a forgotten real estate market

Ourense is the capital of the eponymous province, in the heart of inland Galicia, far from the beaches but surrounded by lush green valleys, vineyards, and rivers like the Miño and the Sil. The city has just over 100,000 inhabitants, about a third of the provincial population, and its metropolitan area exceeds 140,000 inhabitants. It is the third city of Galicia, but without the real estate inflation of Vigo, A Coruña, or Santiago.

Attention:

The province of Ourense, mountainous and rural, faces demographic aging and an exodus to regional capitals, resulting in many vacant homes and low new construction. However, it has a significant stock of real estate assets to revalue, especially in the city of Ourense and in attractive villages like Allariz, Verín, or the Ribeira Sacra.

The city itself stands out for its hot springs (As Burgas, Termas de Outariz), its preserved medieval center, its Roman bridge (Ponte Vella), and its gastronomy. It is a member of the European Historic Thermal Towns Association, which strengthens its positioning as a wellness destination.

The local economy is mainly based on services (administration, healthcare, university campus), agri-food (Coren, chestnuts, Ribeiro wine, livestock), and some industries (textile, automotive) in the San Cibrao das Viñas area. It is not a glamorous city, but a structuring regional center of life, with a reasonable cost of living.

Prices still low compared to the rest of Spain

The first argument for investing in Ourense boils down to one figure: the price per square meter is significantly lower than the Spanish average and even that of Galicia.

On the one hand, at the regional level, the contrast is clear:

– Galicia hovers around €1,400–€1,950/m² depending on sources and segments.

– The most expensive areas (Santiago de Compostela, the coast of Pontevedra and A Coruña) easily exceed €2,500/m².

– Several inland municipalities (Lugo, Ourense) remain below €1,500/m².

Ourense clearly falls into this second group. Data collected on the city and province give the following orders of magnitude:

Indicator	Indicative Value
Median apartment price (city of Ourense)	€1,670/m²
Median house price (city of Ourense)	€902/m²
Average price per m² (province, source in $)	≈ $1,373/m²
Average price per m² (province, other source)	€640–€1,001/m²
Average property price in Ourense (city)	€170,000
Average property price (province, sample)	€257,429

Even taking into account discrepancies between databases, a constant emerges: buying in Ourense costs significantly less than in A Coruña, Vigo, or in most Spanish markets popular with foreigners. Nationally, the average is around €2,100/m², while Ourense often stays below €1,700/m² for apartments and much less for houses.

Example:

For the investor, this means three things: a need for greater diversification, a more in-depth analysis of the specific risks of each asset, and a potential revision of the holding period for investments to adapt to the new market dynamics.

1. Lower financial entry barrier (more affordable initial down payment).
2. Long-term appreciation potential if the “discount” compared to other Galician cities narrows.
3. Possibility of diversifying with several properties (or several strategies) for the price of a single coastal asset.

A paradoxical market: many vacant homes, little new construction

One of the most distinctive traits of the Ourense market is the coexistence of two realities:

– A record number of vacant homes,

– A near absence of new construction.

According to the Galician federation of real estate agencies, there are more than 16,550 vacant homes in the city of Ourense alone, a figure that has risen by nearly 2,000 in ten years. Ourense is even the only major Galician city where the number of unoccupied homes continues to increase, and it has surpassed Vigo and A Coruña on this point, despite a much smaller population. Province-wide, 24.01% of homes are estimated to be vacant, almost double the national average (13.7%).

5.6

Only 5.6% of residences are inhabited in the Casco Vello, the old town.

At the same time, the province of Ourense ranks near the bottom in Galicia for:

– the number of new homes sold,

– the number of new projects started or completed.

This imbalance creates a field of opportunities:

– for those looking to renovate and enhance old buildings (especially in the historic center and attractive villages),

– for developing new concepts (co-living, senior or student cohousing, well-regulated tourist accommodations) where quality supply is lacking.

But it also requires increased vigilance regarding building quality, urban planning compliance, and actual demand in each micro-market.

Rental profitability: gross yields around 5–6.5%

On the yield side, Ourense sits in the good Spanish average. Most statistics converge on rents and prices yielding gross returns of around 5 to 6.5%, with higher peaks in certain segments or neighborhoods.

A summary overview of the available figures helps to get a clearer picture.

Overview of yields

Indicator	Value
Average gross yield (all types, city)	5.32%
Average gross yield (Idealista source)	5.1%
Yield range by neighborhood (Jul. 2025)	3.33%–6.45%
Average time to “amortize” a property (price/rent)	20.2 years
Average property price	€170,000
Average monthly rent	€700

A payback period of about 20 years for a classic rental investment remains consistent with what is observed in other secondary markets in Spain. It is far from the 30 years or more in some overheated major cities.

Yield by property type

Detailed data by type gives a better idea of the market structure. Below is a consolidated table from two sources (the differences clearly show these are averages from different databases):

Type	Average price (scenario 1)	Monthly rent (1)	Yield (1)	Average price (scenario 2)	Monthly rent (2)	Yield (2)
Studio	€140,000	€600	5.14%	€125,000	€570	5.47%
1 bedroom	€140,000	€650	5.57%	€139,000	€580	4.96%
2 bedrooms	€155,000	€670	5.19%	€145,000	€600	4.97%
3 bedrooms	€159,500	€750	5.64%	€155,000	€800	6.19%
4+ bedrooms	€250,000	€930	4.44%	€225,000	€800	4.27%

What clearly stands out:

Tip:

To optimize rental yield, it is advisable to focus on 1- to 3-bedroom apartments. These properties offer the best compromise between purchase price and rent received, with gross yields frequently exceeding 5.5%. Conversely, larger homes (4 bedrooms or more) are generally less profitable: their acquisition cost is significantly higher, without the rent amount increasing proportionally, which leads to a lower yield.

For a buy-to-let investor, targeting the 2–3 bedroom segment therefore seems most relevant, especially in a city that is both student-oriented (presence of a University of Vigo campus) and family-friendly.

Rents: center vs. periphery

Rental data confirm a classic hierarchy:

Property type	Average rent center	Average rent periphery
1 bedroom	€555/month	€408.33/month
3 bedrooms	€675/month	€491.67/month
Estimated gross yield (center, approx.)	≈ 4.4%
Estimated gross yield (outside center)		≈ 4.6%

Yields calculated from these rents and average prices per m² give slightly lower values (4.4–4.6%) than those calculated on unit prices by type (5–6%). This is explained by:

– the diversity of neighborhoods,

– properties sold below or above the median,

– and different statistical samples.

Tips for the real estate investor

To maximize profitability, it is essential to adopt a fine-grained and detailed analytical approach, going beyond general averages.

Analyze hyperlocal data

Work with specific data by neighborhood and property type for a precise understanding of the market.

Test profitability property by property

Assess the potential performance of each asset individually, rather than relying solely on a city average.

The best neighborhoods in Ourense for investing

The city is divided into many neighborhoods with very different profiles: some are more “prime” (center), others more family-oriented (O Couto, A Ponte), others still very modern residential (Barrocanes), or heavily marked by heritage (Casco Vello).

In practice, an investor will tend to look closely at: past asset performance, market trends, company financial health, economic news and sectoral forecasts.

– rental tension,

– accessibility (transport, AVE train station, buses),

– proximity to employment hubs (hospital, university, administrative center),

– and tourist potential (old center, access to thermal springs).

Centro: centrality, liquidity, heritage value

The city center is the most expensive area per square meter, around the shopping streets (Paseo street), San Lázaro park, and the link with the old town. This higher cost is explained by:

– immediate proximity to shops, services, restaurants and pedestrian zones,

– the heritage value of some buildings,

– good price stability over time.

For an investor, Centro is suitable for:

– a wealth preservation strategy (holding a well-located asset likely to weather cycles well),

– or rentals targeting high-income profiles (executives, professionals, “upscale” thermal spa stays).

The gross yield may be slightly lower than in other neighborhoods, but compensated by better liquidity on resale.

A Ponte: the AVE train station neighborhood and families

A Ponte has changed a lot in recent years. The installation of the high-speed intermodal station (AVE) has propelled it as the gateway to inland Galicia. Its image is that of a “village within the city,” with its own neighborhood life, green spaces, direct access to the Miño River, and a full range of services.

This neighborhood is particularly interesting because:

– it attracts families (parks, schools, neighborhood atmosphere),

– it is practical for professionals who travel frequently (proximity to the station),

– it is well connected to the Miño thermal springs (Termas de Outariz).

For a rental investment, A Ponte combines:

– stable demand,

– decent yields,

– and a value appreciation outlook linked to the growing role of the AVE station.

Barrocanes (Barrocás): modern residential and CHUO hospital

Barrocanes is a more recent area, with modern constructions, good parking options and, above all, direct proximity to the university hospital complex (CHUO).

This proximity greatly changes the profile of rental demand:

– healthcare personnel (doctors, nurses, interns, technicians),

– patients and families for extended stays,

– health sciences students if synergies with the campus strengthen.

For the investor, this is a neighborhood to target if looking for:

– peace and quiet,

– modern comfort,

– and a fairly captive audience (hospital staff need to be close to their workplace).

Good to know:

Prices per square meter are more affordable outside the city center. This cost difference can allow for very competitive yields, especially for investment in larger spaces.

O Couto: tradition, services, and accessible prices

O Couto is considered a “classic” Ourense neighborhood, with a strong identity. You will find:

– all daily services nearby,

– more competitive prices than in the center,

– a well-established population.

This profile attracts local families and tenants looking for good value for money, without necessarily wanting to live in the hypercenter. For an investor, this is an interesting area for:

– 2–3 bedroom apartments for long-term rental,

– decent gross yields with an entry ticket often lower than in the center.

Casco Vello (Old Town): historic heart, potential and risks

The old town concentrates the heritage jewels: cathedral, Plaza Mayor, medieval alleys, tapas bars, nightlife. This is where the tourist and cultural heart of the city beats. But it is also the area with the highest proportion of vacant homes and buildings in very poor condition.

Prices vary enormously depending on the condition of the building:

– cheap new constructions from about €207,000 (with an average climbing to €429,500 for upscale new projects),

– second-hand around €288,000 on average,

– luxury homes that can go up to €652,000 for exceptional views or very exclusive locations.

It is therefore a double-edged neighborhood:

Attention:

Investment in old real estate, especially for projects like boutique hotels or seasonal rentals, can be very profitable. However, it requires maximum legal and technical due diligence, due to urban planning constraints, building structure, and required licenses, especially with the high number of abandoned homes.

Campus Universitario / Universidad: the student bet

The campus neighborhood, connected by bus and surrounded by cafés and cheap eateries, has a young atmosphere and a stock of modern housing at still affordable prices.

For the investor, the advantage is clear:

– fairly predictable student demand,

– possibility of shared housing (3–4 bedrooms),

– flexibility between medium-term rental (academic semesters) and long-term rental.

The combination of campus + hospital in the same city strengthens the depth of demand for furnished small to medium-sized housing.

Other neighborhoods and nearby towns

Other areas mentioned, such as Vinteún (O Vinteun), Mariñamansa, A Carballeira, As Lagunas or the Vilar de Astrés – Palmés – Arrabaldo complexes, offer a mix of authentic local life, traditional Galician cuisine, and reasonable access to the center.

In the provincial periphery, small towns like Verín, Ribadavia, Allariz, Xinzo de Limia or O Barco show even lower prices, but narrower rental markets. They can fit into a strategy:

– of buy-renovate-resell (flip) targeting local residents,

– or of rural tourism (country houses, cottages, wine tourism in the Ribeira Sacra or O Ribeiro).

The province: a very wide range of prices

For those considering investing beyond the city, the price differences between municipalities in the province are spectacular. The table below illustrates some average values per square meter.

Municipality / Area	Apartments (€/m²)	Houses (€/m²)	Recent change
Ourense (city)	1,670	902	—
Barbadás	1,459	598	Houses -7%
San Cibrao das Viñas	1,168	608	-3%
Verín	901	513	+1% (apart.)
O Carballiño	889	515	-1%
Celanova	1,000	494	Houses -7%
Xinzo de Limia	783	517	+6% (apart.)
Ribadavia	755	530	+3%
Castro Caldelas	519	338	-9% (apart.)
Allariz	—	607	-7%

We can see very different sub-markets emerging:

Example:

Around Ourense, in municipalities like Barbadás or San Cibrao, the market is driven by the urban area and industrial activity. There are also towns with rural and wine tourism potential, such as Ribadavia, Allariz, or those in the Ribeira Sacra, which combine viticulture and tourism. Finally, some areas, such as Castro Caldelas, Vilamarín, or A Teixeira, offer very cheap rents, but face more fragile rental demand.

For a foreign investor, focusing first on Ourense city, Barbadás and possibly San Cibrao das Viñas helps limit vacancy risk. More rural projects should be prepared as genuine tourism or agritourism micro-enterprises, not just simple rental investments.

Thermal tourism, nature, Camino: a demand base to structure

Ourense is not the Costa del Sol. Tourism here is quieter, more seasonal, and mostly domestic. The province is even the one that receives the fewest international tourists in Galicia.

And yet, it has several rare assets:

Discover Ourense

The thermal city of Galicia invites you to a unique stay, combining wellness, heritage and spectacular landscapes.

Exceptional thermalism

Enjoy hot springs among the most important in Europe by volume, some gushing at 60°C, and a range of open-air or indoor thermal baths open all year round.

Breathtaking landscapes

Explore spectacular sites like the Sil Canyon and the Ribeira Sacra, on the way to UNESCO World Heritage designation.

Heritage and traditions

Discover a rich built heritage (cathedral, Roman bridge, old town) and take part in vibrant traditional festivals.

Wine routes and gastronomy

Follow the wine routes (O Ribeiro, Monterrei, Verín) and savor typical and generous gastronomy.

The city is also located on routes of the Camino de Santiago (Camino Sanabrés, Via de la Plata, Portuguese Way), which creates a regular flow of pilgrims and hikers.

For real estate, this translates into several niches:

Types of Tourist Accommodations

Discover our selection of accommodation solutions adapted to different forms of tourism, from thermalism to outdoor activities.

Cure & Thermal Spa Rentals

Short and medium-term rentals specially designed for spa guests and thermal bath enthusiasts.

Accommodation for Active Tourists

Welcome solutions for Camino walkers, hikers, kayakers and cyclists seeking adventure.

Cottages in Wine Valleys

Authentic rural cottages located in the heart of wine valleys, for a stay close to nature and vineyards.

Wellness Projects

Guesthouses and small hotels dedicated to well-being, in synergy with local thermal facilities.

But caution: as elsewhere in Spain, regulations on tourist rentals are gradually tightening in many regions. It is therefore essential to check on a case-by-case basis:

– whether a property already has a tourist license,

– whether the homeowners association allows this type of activity,

– and whether the city council still issues permits in the target area.

Dynamic public finances: a favorable medium-term framework

Another positive signal for a long-term investor: the massive public investment effort in favor of the province and the city.

For 2026, the Xunta de Galicia has planned more than €1.7 billion in territorialized investments in the province of Ourense. Per capita spending is among the highest in the region, with the strongest increase compared to the previous year.

In detail, several axes are particularly relevant for real estate value:

703

More than €703 million are invested in the Ourense-Verín-Valdeorras health area, including a new hospital building and infrastructure modernization.

Furthermore, many projects co-financed by European funds (Next Generation, comprehensive action plans like Valdeorras “Polos Camiños do Sil” or Ourense Rural es Vida) aim to:

– revitalize urban centers,

– create public housing in small towns,

– improve soft mobility,

– and modernize local commerce.

Good to know:

For the investor, continuous improvements in the urban environment and infrastructure increase the residential and tourist attractiveness of the province, which has the effect of increasing land value.

How to finance an investment in Ourense as a foreigner

The good news for non-residents: Spanish banks are willing to lend to foreign buyers, even if they do not live in Spain. The bad news: the conditions are stricter than for a resident, and the documentation requirements are high.

In practice, a non-resident investor can generally obtain: access to financial markets, a variety of investment opportunities, and tax advantages depending on international treaties.

– financing covering 50 to 70% of the property value (LTV),

– over a term of 15 to 25 years,

– with a fixed, variable (indexed to 12-month Euribor) or mixed rate.

40

Percentage of the total price to have in cash for the purchase of a property, including down payment and acquisition costs.

In 2026, the interest rate environment is relatively stable:

– 12-month Euribor around 2–2.4%,

– fixed rates for non-residents from around 2.5–3% for the best profiles, higher for LTVs above 65%,

– clear bank preference for properties that are “easy to resell” (standard apartments, well-located urban housing).

“Green mortgages” offered by some banks can provide a slight rate discount for highly energy-efficient homes (A or B certificates). This is a criterion to keep in mind if renovating an old property in Ourense: aiming for good energy performance can improve both the property value and financing conditions.

Taxation: what an investor should anticipate

Spain offers a relatively open legal framework for non-residents: foreigners can buy freely, without any residency obligation. But real estate taxation is dense and multi-layered (state, autonomous community, municipality).

The main items to know for a purchase in Ourense are as follows.

At purchase

For a second-hand property, it is the Transfer Tax (ITP) that applies. In Galicia, the standard rate is in the range of 6–10% of the price, with reduced rates for certain profiles (young people, low-value primary residences, etc.).

For a new property bought from a developer, the following apply:

– VAT (IVA) at 10% on the price,

– plus Stamp Duty (AJD), a registration right typically varying between 0.5% and 1.5% depending on the region (in Galicia, it is within this range).

In addition to these taxes:

Additional costs to budget for

When buying a property, it is essential to budget for ancillary costs, which add to the purchase price. Here are the main expense items to anticipate.

Notary and registry fees

These mandatory fees, representing about 1 to 2% of the purchase price, cover legal formalities, land publicity and registration rights.

Lawyer’s fees

It is advisable to be accompanied by a specialized lawyer. Their fees are generally around 1% of the transaction price.

Credit-related costs

If financing is needed, costs such as the bank’s processing fees, property valuation, or deed copies may apply.

During ownership

Every owner must pay:

– the municipal property tax (IBI), calculated on the cadastral value, with rates often between 0.4% and 1.1%,

– the Non-Resident Income Tax (IRNR):

– on an “imputed” income if the property is not rented (generally 1.1% or 2% of the cadastral value, taxed at 24% for non-EU non-residents, 19% for EU/EEA residents),

– on actual rental income if the property is rented, with the possibility of deducting expenses for EU/EEA residents (and, since a July 2025 decision, extending this logic to non-EU non-residents under certain conditions, with the application of the 19% rate on net income).

Tip:

Beyond a certain wealth threshold, the owner may be subject to the Wealth Tax (Patrimonio) and, for very large estates, the Solidarity Tax on Large Fortunes. The applicability thresholds are high (several hundred thousand euros net in Spanish assets) and their application depends on the specific tax rules of each autonomous region.

At resale

In the event of a capital gain, a non-resident pays tax on the gain at a flat rate of 19%. The gain is calculated as the difference between the selling price and the acquisition price, adjusted for certain costs and works.

On the day of sale, the buyer must withhold 3% of the sale price and pay it to the Spanish Treasury as a deposit. The seller then settles their situation via a declaration (Modelo 210), either to pay the balance or to claim a refund of any overpayment.

An additional municipal tax, the capital gains tax (Plusvalía Municipal), is also generally due on the increase in cadastral value of the land. Since a decision of the Constitutional Court, this tax cannot be applied if the sale results in an overall loss for the owner.

In summary, Spanish taxation does not make an investment in Ourense miraculously more profitable than elsewhere, but the lower entry prices and decent gross yields help absorb these costs.

Purchase procedure for a non-resident: key steps

Buying in Ourense follows the same pattern as everywhere in Spain. The essential steps, for a foreigner, are as follows:

Example:

Buying a property in Spain follows a structured process. First, obtain an NIE, essential for legal acts, from the consulate, police (extranjería) or through a representative. Then, open a Spanish bank account is very useful, even mandatory for a mortgage. It is crucial to hire an independent lawyer specialized in Spanish real estate law. Before commitment, the legal situation of the property must be checked (Nota Simple, absence of debts, planning compliance). The process includes signing a reservation contract, then an arras contract (often 10% of the price, with penalty clauses). After financing is finalized, the public deed (escritura) is signed before a notary, the balance paid, and keys handed over. Finally, the deed must be registered in the Property Registry and service contracts (water, electricity, insurance) put in the buyer’s name.

In Ourense as elsewhere, the main challenge for a foreigner is not so much the complexity of the procedure as the need for drastic control of the property’s legality, especially with old buildings to be renovated.

Specific risks in Ourense… and how to manage them

Many risks mentioned for Spain in general also apply to Ourense: urban planning illegalities, administrative red tape, changes in rules on tourist rentals, squatting (“okupas”), etc.

In this specific territory, several points require particular attention:

Good to know:

The high stock of vacant homes, especially in the Casco Vello, implies often deteriorated buildings and major renovation work. The humid climate of the region exposes older constructions to problems of damp and insulation, requiring a serious structural diagnosis. Tourist demand is mainly Spanish; a viable business plan must combine long-term rental and realistic tourist niches (thermal baths, Camino). In rural areas, the rental market is often non-existent: buying a cheap house does not guarantee rental income without a personal life project or a well-defined tourism concept.

Good management of these risks involves:

– a strict geographical filter (focusing on city neighborhoods or municipalities where rental demand is documented),

– truly independent local support (agents, lawyers, architects),

– a prudent view of tourist rental flows,

– and a comfortable financial margin to absorb renovation costs, acquisition costs, and periods of vacancy.

Ourense in the context of the Spanish real estate market

To conclude, it is useful to place Ourense in the current Spanish landscape. Spain is experiencing:

– economic growth above the eurozone average,

– a structural shortage of new housing in major cities and on the coast,

– strong domestic and foreign demand,

– rising prices (around 7–10% per year depending on studies) in the tightest markets.

In this context, inland cities like Ourense play the role of “catch-up markets”: they remain cheaper than the metropolises and coastal resorts, but offer:

Good to know:

The region offers a pleasant living environment, benefits from improving infrastructure (high-speed train, roads, hospitals, campus) and offers a diversity of real estate products, from old properties to renovate to new builds, in rural or urban settings.

Ourense is not destined to become the new Marbella, nor a short-term speculative hub. However, for an investor:

– looking for gross yields of 5–6% on long-term rentals,

– willing to bet on quality of life, thermal springs and nature tourism,

– capable of working seriously on the due diligence phase and neighborhood selection,

The city offers a risk/return ratio still very interesting relative to its profile.

As always in real estate, the difference between a good and a bad deal will come down to three things: the precise location, the quality of the property, and discipline in analyzing the numbers. In Ourense, more than elsewhere, these three pillars can truly turn a forgotten market into a sustainable opportunity.