Catalonia, Madrid, the Canary Islands and the Balearic Islands, regions where it is more profitable to buy for rent

Catalonia, Madrid, the Canary Islands and the Balearic Islands, regions where it is more profitable to buy for rent

Posted by on May 18, 2017 in News

  • In Spain, buying a house for rent now offers a return of 5.7%
  • Galicia, the Basque Country, La Rioja and Castilla y León are the least profitable communities offering
  • Hospitalet de Llobregat, Córdoba and Málaga are the most profitable municipalities
  • Barcelona is one of the most populated municipalities less profitable while last year it was in the middle part of the table.

Acquiring a property in property to put it in rent is every year more profitable. This is evident from the analysis carried out by the real estate portal fotocasa from the latest data on the price of housing for sale and rent of the month of March. These data show that, on average, the annual profitability that can be obtained in Spain from a property purchased to be subsequently leased is 5.7%, while in 2016 it was 5.3%, in 2015 it was 5.2%, in 2014 it was 5% and in 2013 it was 4.8%.

By communities, Catalonia, Madrid, the Canary Islands and the Balearics are the most profitable to buy a home and put it on rent . Thus, Catalonia offers a return of 6.6% (compared to 6.1% in 2016 and 5.4% in 2015), followed by Madrid (5.9% compared to 5.6% in 2016 and 5.2% in 2015), the Canary Islands (5.9% compared to 5.6% in 2016 and 5.5% in 2015) and the Balearic Islands (5.8% compared to 5.6% in 2016 and 5.2 % 2015). It is striking that in just one year Madrid has gone from being the fourth most profitable community to climb to the second position.

“With the current context of low rates and the volatility of markets, these high returns explain that investors are betting on the purchase of housing to put in rent against the low ratios offered by deposits and funds. This market has still a long way to go in Spain, a country mainly owners who, little by little, is opening to the culture of rent as a consequence of the economic, sociodemographic and labor changes that Spanish society is experiencing, “explains Beatriz Toribio, Head of Studies at fotocasa.

Most profitable communities to buy a home and put it on rent (compare 2017 vs 2016 vs 2015 vs 2014)

Galicia, the Basque Country, La Rioja and Castilla y León are the Spanish regions that offer the lowest profitability, namely 4.1%, 4.7% and 4.9%, respectively, while in 2014 they offered a return of 3.9% and 4%, respectively.

Hospitalet de Llobregat, Córdoba and Málaga are the most profitable municipalities

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