The return on investment in housing stood at 7.6% in the first quarter – idealista / news

The gross profitability of buying a home to put it on the rental market has grown slightly during the first quarter of 2020 to 7.6%, or at least it was until the start of the pandemic. A year ago this rate was 7.5%. Even so, according to the study carried out by idealista, the profitability obtained multiplies by 8, in the worst case, the rates offered by the 10-year State Bonds.

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 offers a gross return of 9.6%, compared to 9.2% a year ago. The premises offer a yield of 9% (a year ago it was 8.5%) and in the case of the garages the profitability was 6.6% compared to 6.8% 12 months ago.

Home profitability

Among the Spanish capitals, Lleida is the one that is the most profitable, with 7.8%. They are followed by Murcia (7.5%), Huelva (7.3%), Castellón de la Plana (6.8%) and Santa Cruz de Tenerife (6.7%). In Barcelona, ​​profitability was 5%, while in Madrid it was 5.2%.

However, the lowest returns in Spain are those obtained by owners of rental homes in San Sebastián (3.8%), Ourense (4.5%), A Coruña (4.7%) and Cádiz (4, 8%).

Profitability of commercial premises

Locals are the most profitable product in almost all capitals. The highest return is obtained in Lugo (12.4%). They are followed by the returns of Oviedo (11%), Huelva (10.2%), Ávila (9.9%) and Seville (9.6%). Next are the cities of Zaragoza (9.5%), Huesca (9.2%) and Tarragona (9.1%). In Barcelona, ​​the rate is 8.4%, while in Madrid it drops to 8.3%.

Segovia offers the least attractive locations for investors (only 6.6% profitability), followed by A Coruña (6.8%), Albacete (7%) and Castellón de la Plana (7%).

Office profitability

The Seville offices present the juiciest return among the capitals, with 10.7% gross profitability. They are followed by Burgos (8.3%), Alicante (8.1%) and Almería (8%). In Madrid, profitability rises to 6.9%, while in Barcelona it drops to 6.7%.

On the opposite side we find the returns of A Coruña (5.6%), Valencia (5.8%), Bilbao (6%), Palma (6.1%) and Murcia (6.1%). The office market is not as uniform as that of other products, so it is impossible to obtain statistical data for more than 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 (8.4%), followed by Burgos (8.3%) and Castellón (7.4%). In Barcelona, ​​the rate of return is 6.3%, while in Madrid it is 5.1%.

The capital with the least profitable garages is Salamanca, with 2.4%, followed by Vitoria (3.2%), Jaén (3.3%) and Palencia (3.3%).

Purchase profitability by type in provincial capitals

Capital living place Offices Locales Garages 10-year bond
A coruña 4,7% 5,6% 6,8% 4,6% 0,8%
Albacete 5,6% n.d. 7,0% 4,1% 0,8%
Alicante / Alacant 6,1% 8,1% 8,8% 4,8% 0,8%
Almeria 6,7% 8,0% 8,8% 5,2% 0,8%
Ávila 6,3% n.d. 9,9% 8,4% 0,8%
Badajoz 6,0% 7,8% 7,5% 3,8% 0,8%
Barcelona 5,0% 6,7% 8,4% 6,3% 0,8%
Bilbao 5,2% 6,0% 8,8% 4,1% 0,8%
Burgos 5,5% 8,3% 8,3% 8,3% 0,8%
Cáceres 5,6% n.d. 8,5% n.d. 0,8%
Cádiz 4,8% n.d. 7,5% 4,1% 0,8%
Castellón de la Plana 6,8% 6,4% 7,0% 7,4% 0,8%
Real city 5,5% n.d. 7,6% 4,7% 0,8%
Córdoba 6,0% 7,5% 8,3% 4,2% 0,8%
Cuenca 6,6% n.d. n.d. n.d. 0,8%
Donostia-San Sebastian 3,8% 7,1% 8,4% 3,6% 0,8%
Girona 5,1% n.d. 8,9% 5,7% 0,8%
Granada 5,1% n.d. 7,6% 3,7% 0,8%
Guadalajara 6,3% n.d. 8,8% 5,8% 0,8%
Huelva 7,3% n.d. 10,2% 5,6% 0,8%
Huesca n.d. n.d. 9,2% n.d. 0,8%
Jaén 6,1% n.d. 7,4% 3,3% 0,8%
The Gran Canarian palms 5,9% 6,5% 8,7% 5,0% 0,8%
Lion 6,1% 7,6% 8,8% 4,5% 0,8%
Lleida 7,8% 6,3% 8,7% 5,9% 0,8%
Logroño 5,2% 6,5% 7,9% 5,8% 0,8%
Lugo 5,3% n.d. 12,4% n.d. 0,8%
Madrid 5,2% 6,9% 8,3% 5,1% 0,8%
Málaga 5,7% 7,7% 8,8% 4,5% 0,8%
Murcia 7,5% 6,1% 8,6% 7,0% 0,8%
Ourense 4,5% n.d. 8,4% n.d. 0,8%
Oviedo 5,7% 6,9% 11,0% 5,4% 0,8%
Palencia 5,4% n.d. 8,3% 3,3% 0,8%
Palma de Mallorca 4,8% 6,1% 7,9% 6,0% 0,8%
Pamplona / Iruña 5,0% 6,5% 8,5% 6,0% 0,8%
Pontevedra 5,2% n.d. 9,0% n.d. 0,8%
Salamanca 5,8% n.d. 7,4% 2,4% 0,8%
Santa Cruz of Tenerife 6,7% 6,6% 9,0% 5,1% 0,8%
Santander 5,4% 6,6% 8,9% 3,8% 0,8%
Segovia 6,2% n.d. 6,6% 3,7% 0,8%
Sevilla 6,0% 10,7% 9,6% 5,3% 0,8%
Soria 6,3% n.d. n.d. n.d. 0,8%
Tarragona 5,7% n.d. 9,1% 4,5% 0,8%
Teruel 6,0% n.d. n.d. n.d. 0,8%
Toledo 6,2% n.d. 8,2% 6,2% 0,8%
Valencia 6,2% 5,8% 8,0% 4,7% 0,8%
Valladolid 5,6% 6,2% 8,8% 3,7% 0,8%
Vitoria-Gasteiz 5,0% 7,9% 7,7% 3,2% 0,8%
Zamora 5,2% n.d. 7,9% n.d. 0,8%
Zaragoza 6,2% 7,7% 9,5% 4,2% 0,8%

Important: 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 first quarter of 2020. The The result obtained is the gross percentage of profitability that a homeowner provides to rent 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.

Based on the report for the first quarter of 2019, at idealista we updated the methodology for creating our reports. After the incorporation of idealista / data, new calculation formulas have been included that provide even more robustness to the analysis of price evolution, especially in small areas. On the recommendation of the idealista / data statistical team, we updated the formula to find the median price with more certainty: in addition to eliminating outliers and out-of-market ads we calculate the median value instead of the median value.

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