Nationally, offices are still the most profitable product (12.9%), followed by commercial premises (9.6%) and garages (7.1%).
The gross profitability of buying a home to put it on the rental market has grown slightly during the fourth quarter to 7.2%, since at the end of 2021 the return offered stood at 6.9%. According to the study carried out by idealista, the return obtained is double, in the worst case scenario, the rates offered by 10-year government bonds (3.5%).
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 real estate investment. Buying an office in Spain to rent it out offers a gross yield of 12.9%, compared to 11.2% 12 months ago. Premises offer a yield of 9.6% (9.4% a year ago) and in the case of garages it stands at 7.1%, up from 6% in December 2021.
Among the Spanish capitals, Lleida is the most profitable, reaching 8.3%, followed by the city of Murcia with 8.2% and Huelva (8.1%). Teruel (7.3%), Jaén (7.3%), Almería (7.1%), Castellón de la Plana and Alicante (7% in both cases) are below 8%. In contrast, San Sebastian is the city with the lowest profitability (3.8%), followed by Palma (4.3%), A Coruña (4.6%), Pamplona (4.7%) and Madrid (4.9%). In Barcelona, the profitability is as high as 5.7%.
Profitability of commercial premises
Commercial premises are the most profitable product in almost all the capitals. The highest returns are obtained in Santa Cruz de Tenerife (11%), Lleida and Ávila (10.7% in both cases). This is followed by returns in Huelva and Lugo (10.6% in both cities), Zaragoza (10.5%), Girona and Murcia (10.1%). In Barcelona the rate stands at 8.6% and in Madrid it is 8%.
Salamanca is the capital where the profitability of premises is lowest, at 7.4%. The lower part of the table is completed by Albacete (7.5%), Segovia, Jaén and A Coruña (7.6% in all three cases).
The Seville offices have the juiciest return among the capitals, with a gross return of 13.4%. They are followed by Zaragoza (10.8%), Albacete (10.6%), Almería (10.3%) and Vitoria (9.3%). In Barcelona, the profitability stands at 7.3%.
At the other end of the scale are the yields of Bilbao (6.2%), Santa Cruz de Tenerife (6.2%), A Coruña (6.3%), Madrid, Córdoba, Pamplona and Ourense (6.6% in all four cities). The office market is not as uniform as for other products, so it is impossible to obtain statistical data for almost half of the Spanish capitals.
Profitability of garages
Garages are, in contrast, the least profitable product for investors in many capitals. The highest returns are obtained in Murcia (9.4%), Castellón de la Plana (8.6%), Ávila (7.5%), Lleida (7.2%), Palma (6.8%), Toledo (6.5%) and Barcelona (6.5%). In Madrid, the rate of return stands at 5.2%.
The capital city with the least profitable garages is Salamanca, with 2.9%, followed by Ourense (3%), Santander (3.2%), Palencia (3.5%), Granada and Vitoria (with returns of 3.7%).
In order to prepare this study, idealista has divided the sale price offered by the rental price requested by owners in the different markets with reference to the quarterly indices of homes, premises, garages and offices corresponding to the fourth quarter of 2022. The result obtained is the gross percentage of profitability that a homeowner obtains from renting out his or her property. 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 make a profit.
Translated with www.DeepL.com/Translator (free version)