October 21, 2016

The profitability of rental properties in Spain increased

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Investing in property in Spain, in any of the products analyzed, continues to offer its owners four times higher profitability, even in the worst cases, compared with the purchase of government bonds of 10 years. In addition, the profits on investment in buying a residential property in Spain for rent increased to 5.9% from 3.6% of last year, especially in large cities.

According to study conducted and published this week that analyzes the sales and rental  prices of different types of real estate in Spain for the calculation of its gross profitability, commercial premises remain the most profitable investment in building trade. Buying a house or an apartment in Spain for its subsequent rental offers to the owners a gross profit of 8.4%, compared with 7.5% a year ago. Offices in Spain, meanwhile, offer benefits of 7.4% (last year 6.8%), and garages have a rate of 4.6%.

The profitability of a property in Spain can be varied depending on the location. Thus, among the capitals of the provinces, Lleida has the best indicator of the profitability, 7.1%, followed by Las Palmas de Gran Canaria (6.7%), Palma de Mallorca (6.7%), Huelva (6.5%) and Alicante (6.3%). In Barcelona, ​​the profitability of a rented real estate is 5.7%, as well as in Madrid. Meanwhile, lower rental incomes receive the owners in Ourense (3.7%), La Coruna (3.8%) and San Sebastian (3.9%).

The profitability of the business premises in Spain is considered the highest among the other types of real estate. They are the most profitable investment in many of the capitals of the Spanish provinces. The higher returns on their investments obtain owners of houses and apartments in Alicante (10%) and Bilbao (9.4%). They are followed by Malaga (8.7%), Valencia (8.7%) and Barcelona (8.6%). Madrid in this case provides a figure of 7.6%. Castellon, however, is not a very interesting option for investors because it provides only 4.9% of benefits, as well as Huelva (5.5%) and Caceres (5.8%).

In the case of commercial offices in Spain, among the other capitals of the provinces Cordoba stands out in terms of rental gross profits, i.e. 9.2%. It is followed by Santa Cruz de Tenerife (6.9%), Zaragoza (6.9%), Castellon de la Plana (6.6%), Seville and Las Palmas de Gran Canaria (6.4% in both cases). In Barcelona, ​​offices margin is about 6.3%, while in Madrid is equal to 6%.

On the opposite side of the classification are located La Coruna (4.9%), Santander (5%) and Valencia (5.1%). It is worth noting that the office market in Spain and its rental indexes is not as uniform as of other products that makes impossible to obtain statistical data from numerous capitals of the Spanish provinces.

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