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2024. Increase in rental profitability of properties in Spain?

Increased profitability of renting Spanish residential properties (apartments, villas, etc.)

In recent months we have seen an increase in property prices, due to the lack of supply in the market, as well as the inflation which has set the tone for the economy in recent times.

Faced with this panorama, it is increasingly difficult for Spanish citizens to access or own new housing, which is why they are forced to obtain housing by renting. This is why we have seen a reduction in rental supply, leading to an increase in rental prices, leading to an increase in these, as well as in their yields.

The average in Spain

Some data, at the end of the third quarter, indicated that the average rental profitability was close to 7%. We found areas such as Castile-La Mancha, Extremadura and Murcia, which were close to and slightly exceeded profitability of 7%.

However, at the end of the quarter we see that this 7% barrier has been largely exceeded in different regions of Spain, such asLleida, with 8.5%, Murcia, with 7.9%, Huelva with 7.3%, Jaén with 7.2% and Segovia with 7, 1%.

Next come Castellón de la Plana and Valencia, which reach 7%.

Below 7% we immediately find Almería with 6.9%, Alicante with 6.8%, Ávila with 6.6% , Zamora 6.6%. strong>, and Toledo, 6.6%.

The capitals with the lowest rental profitability are Pamplona, ​​Cádiz, Palma de Mallorca and La Coruña, all slightly above 4.5%.

Large capitals like Madrid and Barcelona have a profitability of 5.2 and 5.9% respectively. This low profitability is due to the high prices achieved in both capitals, although they are considered very safe places due to the wide and abundant supply that exists in these areas.

Offices, the most profitable

Depending on the area, we find yields of more than 10%, and in Barcelona and Madrid around 7.5 and 8%.

Commercial Properties

If we focus on commercial premises, profitability well exceeds 10%, both in Murcia, Santa Cruz de Tenerife and Bilbao, and in Barcelona and Madridit is slightly above 8%.

Source: El Economista