With the rise in illegal occupations across Spain, a surprising trend has emerged that sees buyers deliberately snapping up squatted properties at knockdown prices.

But is it really a bargain or are you just buying yourself a legal and financial headache?

According to a recent study by Idealista, the number of occupied homes sold rose by 4.6% in a single quarter.

Many owners simply don’t have the time, money or patience to deal with squatters – or Spain’s slow court system – so they cut their losses and sell.

The Spanish Eye last year revealed how a British homeowner was forced to sell her Malaga villa at a fraction of its market value after being overwhelmed by squatter invasions.

Because the property comes with what’s known in slang as a ‘bicho’ (literally ‘bug’, referring to the okupas), the price is usually well below market value.

That’s where opportunity – or risk – comes in.

‘There’s a specific buyer profile who has the economic or legal capacity – or both – to deal with the problem and sees it as an opportunity,’ said Santiago Thomas de Carranza, managing partner at Thomas de Carranza Abogados, speaking to Idealista.

Can it really be a good deal?

According to experts, it all comes down to price versus risk.

When you buy a squatted home, you usually can’t enter the property before purchase.

It means you can’t properly assess its condition and you may not be able to get a mortgage.

In many cases, buyers are effectively purchasing blind – and the property could require major renovation.

‘For obvious reasons, the seller cannot accept liability for the condition of the property,’ added Thomas de Carranza.

‘That assumption of risk is precisely what justifies the price reduction.’

Before buying, it’s also essential to understand who is inside.

Is it a single person, multiple occupants or a family? And crucially are there minors?

If children are involved, eviction procedures can take significantly longer. Courts often involve social services and may delay action if minors are in school or considered vulnerable.

‘All of this can extend the process,’ the lawyer added.

How do you actually get them out?

Once you’ve bought the property, you have two realistic options.

1. Negotiate.
Many investors set aside part of the money saved on the purchase price to offer a financial incentive for voluntary departure – sometimes known as ‘cash for keys.’

This avoids court battles and speeds things up.

2. Go to court.
If negotiations fail, legal proceedings are the only route. And they can take one to two years, depending on circumstances.

On top of the purchase price, buyers must factor in legal fees, court costs, potential compensation payments and renovation costs after recovery.

So… bargain or trap?

These purchases are not for the faint-hearted.

Yes, there are genuine opportunities – and a growing market of specialist buyers – but they require careful legal advice, financial planning and patience.

At the end of the day, you’re buying a problem and betting you can solve it cheaper than the discount you received.