The gross return on buying a home to put it on the rental market has risen slightly during the second quarter to 7.2%, as in the second quarter of 2021 the return it offered stood at 7.1%. According to the report carried out by idealista, the profitability obtained more than doubles, in the worst case, the rates offered by 10-year government bonds (2.5%).
According to this study, which relates the sale and rental prices of different real estate products to calculate their gross profitability, offices remain the most profitable investment. Buying an office in Spain to rent it out offers a gross yield of 11.2%, compared to 11.4% 12 months ago. Premises offer a yield of 9.3% (9.4% a year ago) and in the case of garages it stands at 6.2%, down from 6.5% at the end of June 2021.
Housing profitability
Among the Spanish capitals, Lleida and Murcia are the most profitable, with 8.6% in both cases. They are followed by Huelva (8.1%), Cuenca (7.9%) and Almería (7.4%). However, the lowest returns in Spain are obtained by owners of rental properties in San Sebastian (3.6%), Palma (4.4%), Pamplona (4.5%), A Coruña (4.6%) and Ourense (4.9%). In Madrid, the yield is also 4.9%, and in Barcelona it rises to 5.1%.
Profitability of commercial premises
The locals are the product with the highest profitability in almost all the capitals. The highest return is obtained in Ávila (11.4%), Murcia and Lugo (10.6% in both cases). It is followed by Lleida and Zaragoza (10.5% in both cities), Bilbao (10.1%) and Huelva (10%). In Barcelona and Madrid, the rate is 8.5% and 8.1%, respectively.
Albacete is the capital city with the lowest local profitability, at 7.2%. The lower part of the table is completed by A Coruña (7.3%), Jaén (7.4%), Salamanca (7.5%), Teruel (7.8%) and Badajoz (7.9%).
Office profitability
The Seville offices have the juiciest return among the capital cities, with a gross return of 11.7%. It is followed by Huelva (10.2%), Toledo (9.8%), Almería (9.3%) and Málaga (9%). In Madrid, the yield is 6.6%, the same return as in Barcelona.
On the opposite side, we find the yields of A Coruña (6.2%), Bilbao (6.3%), Palma, Ourense and Santa Cruz de Tenerife (6.5% in all three cases). The office market is not as uniform as that of other products, making it impossible to obtain statistical data for almost half of Spain’s capital cities.
Profitability of garages
Garages are, in contrast, the least profitable product for investors in many capitals. The highest returns are obtained in Castellón de la Plana (8.6%), Murcia (7.8%), Ávila (6.8%), Pamplona (6.5%), Toledo (6.4%) and Barcelona (6.3%). In Madrid, the rate of return is 4.8%.
The capital city with the least profitable garages is Salamanca, with 2.5%, followed by Ourense (3.2%), Jaén, Vitoria and Granada (3.5% in all three markets).
