The purchase of a house for rent is increasingly an option for small savers who expect a return. According to an idealist study, in the first quarter of 2018 the income from housing investment has risen by six percentage points to 7.8 percent in the last year, due to increased demand for rents. qatar properties for sale
According to an idealism study, real estate investment in Spain offers rates of return three times higher than those of 10-year government bonds in all products analyzed, and this is the worst case scenario.
Return on rental investment grew to 7.8% from 7.1% a year ago, mainly because of higher rental demand.
According to this study, which deals with the sale and rental prices of various immovable products, commercial premises are still the most profitable investment properties to calculate the gross profitability.
The purchase of a commercial property for rent in Spain offers a rough return of 8.9%, compared with 8.3% a year ago. Offices offer a return of 8 percent, compared to 7.5 percent one year ago. The product Garages is the least profitable product this year, which rose from 5.4% in the first quarter of 2017 to 5.6% today.
Return on residential properties
Las Palmas de Gran Canaria is the most profitable among the Spanish provincial capitals, with 8.1 percent. The following are: Santa Cruz de Tenerife (7.4%), Lleida (7.3%), Huelva (6.9%), Almería and Castellón (6.8 percent in both cases). In Barcelona, profitability is 4.9 percent lower than in Madrid (5.4 percent ).
The lowest returns in Spain are obtained from owners of properties rented in San Sebastian (4.2 percent ). Following this were Ourense (4.3%), A Coruña (4.5%), Zamora (4.6%) and Pamplona (4.7 percent ).
Commercial property profitability
Commercial premises in most capital cities are the most profitable product. Saragossa (10,6%), Pontevedra (9,7%), Córdoba (9,3%), Lleida (9,2%) and Barcelona obtained the highest income (9.1 percent ). The profitability of the buildings in Madrid remains stable at 8%.
Castellón provides investors with the least attractive locations (6% returns), followed by Salamanca (6.3%) and Caceres (6.6 percent ).
Office profitability
Santa Cruz de Tenerife offices have the largest return of the capital cities, with a gross return of 7.9%. The following are: Malaga (7.5%), Saragossa (7.3%) and Logroño (7.2 percent ). Profitability rose to 6.6% in Madrid, and dropped to 5.8% in Barcelona.
On the other hand, the performance of A Coruña (4.9%), Santander (5.2%) and Murcia can be observed (5.6 percent ). The office market is not as uniform as other products, making statistical data impossible to obtain for more than half of the Spanish capitals.
Garage profitability
In contrast, garages are the least profitable product for many capital investors. The highest rates of profit are Palma (7.3%), Seville (7.2%), Girona (6.3%) and Lleida (7.2%) (5.8 percent ). In Madrid, the profitability of a parking lot is 3.3%, while in Barcelona it is 3%.
The towns with the lowest garages are Malaga and Oviedo, with 2.3 percent, followed by Salamanca, with 2.9 percent.
Methodologics
For this study, idealista divided the rental price that owners request by the average selling price on various markets for the first quarter of 2018, based on quarterly indexes of homes, commercial premises, garages and bureaux. The result is the gross profitability percentage that a property owner must lease out its property. This data helps analyze the state of the market at present and is a fundamental point of departure for all investors who wish to buy real estate assets to make a profit.