According to the results of the survey, 26% of people in all of Spain purchase a property with the intention of renting it out. The most relevant cities where such investments are more justified are Barcelona, Madrid and the golden coast of Costa del Sol. The share of investments in these cities ranges from 33 to 40%.
According to the analysis of the research data, investors prefer real estate in the three largest cities in Spain, large cultural and economic centers. So, investments in Barcelona are more significant. The number of real estate purchases for the purpose of renting out is about 40%. Valencia is the second most popular city in which the share of such investments is 37%. And in the very center of Spain, in Madrid, not much less - only 33%. Analysts agree that these cities are the most profitable now for such investments. The stated opinion is noted in the latest news from Spanish Property Insight.
Rental prices in Spain have increased significantly in recent years, and accordingly, if there is demand, the profitability of renting apartments, houses, villas has also increased. According to the information portal Idealista, over the past year, the owners of rented housing in Spain have increased their income from 5.5% to 6.1% per year. Although Madrid and Barcelona are not seeing any similar trends yet (yields are still 5.5% per annum), there are significant shifts in housing demand in Palma de Mallorca, Las Palmas de Gran Canaria and Alicante. Accordingly, the profitability of renting housing in them is 6.7, 6.5, and 6.5% per year. Buying real estate in Barcelona and Madrid costs a lot of money and reduces their yield to 3% per year. But according to experts, the real estate market in Spain is recovering, and even such figures do not affect the decision of investors who prefer the three largest cities in the country.