House Flipping in Spain: 15–20% returns in 6–36 months

Cristina Schuttmann
Sep 15
3 min read

Why House Flipping is the most profitable real estate strategy in Spain

In a market where bank deposits barely reach 2% per year and the stock market fluctuates without control, House Flipping emerges as the most profitable real estate investment strategy for investors seeking returns above 15% within controlled timeframes.

After managing €500M+ through our partners and maintaining a 0% failure track record in House Flipping, at Biznexus Consulting we have perfected a methodology that transforms underutilized properties into high-yield assets in 6–36 months.

What is House Flipping and why does it work in Spain?

House Flipping consists of acquiring properties with improvement potential, renovating them strategically, and selling them within a defined timeframe with a target profit margin of 15–25%.

Spain offers unique conditions for this strategy:

Aging housing stock: Thousands of properties require modernization.
Quality demand: Buyers are willing to pay a premium for renovated homes.
Competitive renovation costs: Skilled labor at reasonable prices.
Clear regulatory frameworks: Predictable licensing and permit processes.
Market liquidity: Strong absorption capacity for improved properties.

Our Proven 7-STEPS System

STEP 1: STRATEGIC IDENTIFICATION

Not every property is a candidate for House Flipping. We apply 23 specific filters.

Location criteria:
- Areas in the process of gentrification (not fully gentrified).
- Proximity to public transport (max 400m).
- Emerging commercial development.
- Confirmed favorable urban planning.
Property criteria:
- Solid structure (avoiding structural issues).
- Modifiable layout without affecting load-bearing walls.
- Minimum 60 m² (established market demand).
- Price 15–25% below post-renovation market value.
Financial criteria:
- Minimum projected ROI: 15%.
- Total investment (purchase + renovation) ≤ 70% of final value.
- Maximum timeframe: 12 months for standard projects.

STEP 2: EXHAUSTIVE DUE DILIGENCE

Technical-construction analysis: structural inspection, utilities, insulation, energy certification, pathology analysis.
Legal-administrative analysis: registry checks, licenses, urban regulations, community statutes.
Micro-market analysis: comparables, absorption rate, direct competition, demand projection.

STEP 3: RENOVATION STRATEGY

Renovation must be ROI-based: every euro invested should generate at least €1.5 in added value.

Investment hierarchy:

Kitchens: ROI 2.5x.
Bathrooms: ROI 2.2x.
Flooring: ROI 1.8x.
Painting & finishes: ROI 2.8x.
Lighting: ROI 2.1x.

Real Projects

VALENCIA – “RUSSAFA LOFT”

Purchase: €168K | Renovation: €38K | Sale: €245K
Gross ROI: 18.9% | Net profit: €39K | Total timeline: 6 months

MADRID – “MALASAÑA CLASSIC”

Purchase: €285K | Renovation: €52K | Sale: €398K
Gross ROI: 18.1% | Net profit: €61K | Total timeline: 8 months

BARCELONA – “GRÀCIA FAMILY”

Purchase: €320K | Renovation: €48K | Sale: €425K
Gross ROI: 15.4% | Net profit: €57K | Total timeline: 9 months

Market Outlook 2025

MADRID: The strongest market

Opportunities: Tetuán (€3,200/m²), Carabanchel (+25% potential), Puente de Vallecas (€2,800/m²).
Buyer profile: 28–40 years, budgets €250K–450K, values transport + lifestyle.
ROI avg: 16–19% | Timeline: 7–9 months

VALENCIA: The golden opportunity