The gross profitability of the purchase of a house to put it on the rental market has risen during 2020 to 7.5%, one tenth more compared to 2019. In the third quarter of the year, however, the return it offered stood at 7.9%. According to the study carried out by idealista, the profitability obtained multiplies by 75, in the worst case, the rates offered by the 10-year State Bonds (0.1%).
The marketplace explains that “the slight increase in profitability at the national level is related to a greater increase in rents in Spain during 2020 (they grew by 1.4%), compared to the 0.9% increase in homes for sale. The situation is reversed in the cities of Madrid (the yield has gone from 5.2% in 2019 to 4.9% today) and Barcelona (from 4.8% in 2019 to 4.5%), where the falls in rents they have been more notable than those registered for sale. ”
According to the study, which relates the sale and rental prices of different real estate products to calculate their gross profitability, offices remain the most profitable real estate investment. Buy one office in Spain to rent it offers a gross profitability of 10.8%, compared to 9.9% that gave 12 months ago. The locales offer a performance of 9,3% (8.9% a year ago) and in the case of garages It stands at 6.9%, higher than 6.7% in December 2019.
Home profitability
Among the Spanish capitals, Lleida is the most profitable, with 8.7%. They are followed by Murcia (7.9%), Huelva (7.3%), Castellón de la Plana (7%) and Almería (6.7%). However, the lowest returns in Spain are those obtained by owners of rental homes in San Sebastián (3.7%), Barcelona (4.5%), A Coruña (4.5%), Palma (4, 6%) and Madrid (4.9%).
Profitability of commercial premises
Locals are the product with the highest profitability in almost all capitals. The highest return is obtained in Huelva (10.8%). They are followed by the returns of Oviedo (10.7%), Ávila (10.6%), Lugo (10.1%), Zaragoza and Tarragona (9.8% in both cases). Next are the cities of Seville and Burgos (9.7% in both cities). In Barcelona and Madrid, the rate stands at 8.3% and 8.1%, respectively.
Teruel offers the places with the least attractiveness for investors (only 6.5% profitability), followed by A Coruña, Jaén and Albacete (7.1% in the 3 cases).
Office profitability
The Seville offices present the juiciest return among the capitals, with 13% gross profitability. They are followed by Lugo (10.3%), Vitoria (9.4%), Burgos and Zaragoza (9% in both cities). In Madrid, profitability fell slightly to 6.6%, and in Barcelona to 6.3%.
On the opposite side, we find the returns of A Coruña (5.7%), Ourense (5.9%), Valencia (5.9%) and Bilbao (6%). The office market is not as uniform as that of other products, so it is impossible to obtain statistical data for almost half of the Spanish capitals.
Garage profitability
Garages are, in contrast, the least profitable product for the investor in many capitals. The highest profitability is obtained in Ávila (9.2%), followed by Murcia (8.8%) and Soria (8.3%). In Barcelona, the rate of return stands at 6.3%, while in Madrid it drops to 4.8%.
The capital with the least profitable garages is Salamanca, with 2.6%, followed by Ourense (3.2%), Pontevedra (3.3%) and Granada (3.4%).
For the preparation of this study, idealista has divided the sale price offered by the rental price requested by the owners in the different markets referring to the quarterly indexes of homes, premises, garages and offices corresponding to the fourth quarter of 2020. The result obtained is the gross percentage of profitability that a homeowner provides by renting his home. This data facilitates the analysis of the current state of the market and is a basic starting point for all those investors who want to buy real estate assets in order to obtain benefits.
| Spain | living place | Offices | Locales | Garages | 10-year bond |
| Profitability 4Q 20 | 7,5% | 10,8% | 9,3% | 6,9% | 0,1% |
| Profitability 3Q 20 | 7,9% | 11,2% | 9,3% | 8,4% | 0,2% |
| Profitability 4Q 19 | 7,4% | 9,9% | 8,9% | 6,7% | 0,4% |
| Capital | living place | Offices | Locales | Garages | 10-year bond |
| A Coruña | 4,5% | 5,7% | 7,1% | 4,9% | 0,1% |
| Albacete | 5,6% | n.d. | 7,1% | 4,4% | 0,1% |
| Alicante | 6,0% | 7,2% | 9,4% | 4,8% | 0,1% |
| Almeria | 6,7% | 8,5% | 9,3% | 5,2% | 0,1% |
| Ávila | 6,2% | n.d. | 10,6% | 9,2% | 0,1% |
| Badajoz | 6,1% | 7,3% | 7,5% | 4,1% | 0,1% |
| Barcelona | 4,5% | 6,3% | 8,3% | 6,3% | 0,1% |
| Bilbao | 5,0% | 6,0% | 9,5% | 4,2% | 0,1% |
| Burgos | 5,5% | 9,0% | 9,7% | 5,0% | 0,1% |
| Cáceres | 5,9% | n.d. | 9,3% | 4,5% | 0,1% |
| Cádiz | 4,9% | n.d. | 8,1% | 4,5% | 0,1% |
| Castellón de la Plana | 7,0% | 7,6% | 7,7% | 8,2% | 0,1% |
| Real city | 5,9% | n.d. | 7,8% | 4,1% | 0,1% |
| Córdoba | 6,2% | 6,7% | 8,0% | 4,4% | 0,1% |
| Cuenca | 6,5% | n.d. | 7,5% | n.d. | 0,1% |
| Saint Sebastian | 3,7% | 7,4% | 8,8% | 4,1% | 0,1% |
| Girona | 5,3% | n.d. | 9,2% | 6,2% | 0,1% |
| Granada | 5,5% | 7,3% | 7,6% | 3,4% | 0,1% |
| Guadalajara | 6,2% | n.d. | 8,4% | 5,2% | 0,1% |
| Huelva | 7,3% | n.d. | 10,8% | 6,0% | 0,1% |
| Huesca | 6,0% | n.d. | 9,2% | 5,0% | 0,1% |
| Jaén | 6,1% | n.d. | 7,1% | 3,7% | 0,1% |
| Las Palmas de GC | 5,8% | 6,4% | 8,7% | 7,3% | 0,1% |
| Lion | 6,0% | 7,5% | 8,4% | 4,5% | 0,1% |
| Lleida | 8,7% | 6,8% | 9,6% | 7,6% | 0,1% |
| Logroño | 5,3% | 7,6% | 8,1% | 5,0% | 0,1% |
| Lugo | 5,4% | 10,3% | 10,1% | 3,9% | 0,1% |
| Madrid | 4,9% | 6,6% | 8,1% | 4,8% | 0,1% |
| Málaga | 5,6% | 7,6% | 8,8% | 5,6% | 0,1% |
| Murcia | 7,9% | 6,6% | 9,5% | 8,8% | 0,1% |
| Ourense | 5,1% | 5,9% | 7,9% | 3,2% | 0,1% |
| Oviedo | 5,8% | 6,5% | 10,7% | 5,9% | 0,1% |
| Palencia | 5,6% | n.d. | 7,5% | 3,5% | 0,1% |
| Palma | 4,6% | 7,1% | 8,2% | 7,7% | 0,1% |
| Pamplona | 5,0% | 6,4% | 8,7% | 6,0% | 0,1% |
| Pontevedra | 4,9% | n.d. | 8,8% | 3,3% | 0,1% |
| Salamanca | 5,8% | n.d. | 7,2% | 2,6% | 0,1% |
| S / C of Tenerife | 6,6% | 6,9% | 8,8% | 5,1% | 0,1% |
| Santander | 5,5% | 7,2% | 9,0% | 3,7% | 0,1% |
| Segovia | 6,1% | n.d. | 8,0% | 3,8% | 0,1% |
| Sevilla | 5,9% | 13,0% | 9,7% | 5,6% | 0,1% |
| Soria | 5,8% | n.d. | n.d. | 8,3% | 0,1% |
| Tarragona | 5,8% | n.d. | 9,8% | 5,0% | 0,1% |
| Teruel | 6,5% | n.d. | 6,5% | 6,0% | 0,1% |
| Toledo | 6,3% | n.d. | 8,6% | 6,8% | 0,1% |
| Valencia | 5,9% | 5,9% | 8,3% | 4,9% | 0,1% |
| Valladolid | 5,6% | 6,7% | 8,6% | 4,0% | 0,1% |
| Vitoria | 5,2% | 9,4% | 8,6% | 4,0% | 0,1% |
| Zamora | 5,4% | n.d. | 7,6% | 4,3% | 0,1% |
| Zaragoza | 6,3% | 9,0% | 9,8% | 4,5% | 0,1% |
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