Investing in Squatted Assets: Legal Guide & Profitability

Investing in squatted assets may seem risky, but in the hands of an informed and well-advised investor, it becomes a high revaluation opportunity. Many of these properties —industrial warehouses, commercial spaces, or entire buildings— are sold at prices far below market value (30% to 50% discounts) precisely due to their complex legal situation. However, with the right strategy, it is possible to recover, legalize, and convert them into profitable productive assets.

The key lies in understanding the current legal framework and acting quickly. Since the 2022 Criminal Code reform, trespassing in non-habitual premises (such as warehouses or shops) is mainly handled via civil law. Although the process can be slower than for homes, it is not impossible. The most effective avenues today are:

• Precarious eviction lawsuit: The fastest route if the occupant has no contract or title. Allows recovery in 6-12 months if well-documented.
• Reivindicatory action: Essential if you can prove ownership with a deed registered in the Property Registry. It is the solid legal basis for any recovery.
• Direct negotiation: In many cases, offering reasonable compensation for moving expenses is faster and cheaper than a long trial. It is a common strategic tool in recovering industrial assets.

Real Profitability When Investing in Squatted Assets

Once the asset is recovered, its revaluation potential is high. Many are in strategic locations (consolidated industrial parks, urban centers) and only need minimal adaptation to rent them to logistics operators, workshops, or businesses. The combination of low purchase price + moderate recovery cost = net yields of 8% to 12%, much higher than the traditional market.

At Alquilujo Internacional, we work exclusively with lawyers specialized in asset recovery and experts who evaluate the real recovery cost vs. post-rehabilitation value. Thus, we only propose operations with a clear profit margin and mitigated legal risk.

According to the General Council of the Judiciary, evictions for illegal occupation in non-residential properties increased by 22% in 2024, but courts are streamlining processes in well-documented cases with expert legal representation.

Are you interested in investing in squatted assets but unsure if it’s viable? We offer a free risk and return analysis. Contact us or explore our opportunities in commercial assets and industrial warehouses.