The gross return on buying a home to put it on the rental market has risen for 2020 until the 7,5%, one more tenth against 2019. At third quarter of the year, However, the return offered was at the 7,9%. According to the study carried out by idealista, the profitability obtained multiplies by 75, in the worst case, the rates offered by the State Bonds to 10 years (0,1%).

The marketplace explains that “the slight increase in profitability at the national level is related to a higher rent increase in Spain during 2020 (they grew a 1,4%), in front of 0,9% that the homes for sale rose. This situation is reversed in the cities of Madrid (performance has gone from 5,2% of 2019 al 4,9% actual) and Barcelona (of the 4,8% of 2019 al 4,5%), where the falls in rents have been more notable than those registered for sale”.

According to the study, that relates the sale and rental prices of different real estate products to calculate their gross profitability, offices remain the most profitable real estate investment. Buy one office in Spain to rent it offers a gross profitability of 10,8%, in front of 9,9% What did they give? 12 months. The locales offer a performance of 9,3% (8,9% a year ago) and in the case of garages It stands at he 6,9%, higher than 6,7% from December to 2019.

Home profitability

Between the Spanish capitals, Lleida is the one that is most profitable, with a 8,7%. Murcia follows (7,9%), Huelva (7,3%), Castellón de la Plana (7%) and Almería (6,7%). However, The lowest returns in Spain are those obtained by owners of rental homes in San Sebastián (3,7%), Barcelona (4,5%), A Coruña (4,5%), Palma (4,6%) and Madrid (4,9%).

Profitability of commercial premises

The premises are the product that has the highest profitability in almost all capitals. The highest return is obtained in Huelva (10,8%). Followed by the returns of Oviedo (10,7%), Ávila (10,6%), Lugo (10,1%), Zaragoza and Tarragona (9,8% in both cases). Then, the cities of Seville and Burgos are located (9,7% in the two cities). In Barcelona and Madrid, the rate is at 8,3% and 8,1%, respectively.

Teruel offers the least attractive premises for investors (alone 6,5% profitability), followed by A Coruña, Jaén and Albacete (7,1% in the 3 cases).

Office profitability

The Seville offices present the juiciest return among the capitals, with a 13% of gross profitability. They are followed by Lugo (10,3%), Vitoria (9,4%), Burgos and Zaragoza (9% in both cities). In Madrid, profitability drops slightly until 6,6%, and in Barcelona until 6,3%.

On the opposite side, we find the profitability of A Coruña (5,7%), Ourense (5,9%), Valencia (5,9%) and Bilbao (6%). The office market is not as uniform as that of other products, therefore it is impossible to obtain statistical data for almost half of the Spanish capitals.

Garage profitability

The garages are, as opposed, the least profitable product for the investor in many capitals. The highest profitability is obtained in Ávila (9,2%), followed by Murcia (8,8%) and Soria (8,3%). In Barcelona, the rate of return is at 6,3%, while in Madrid it goes down to 4,8%.

The capital with the least profitable garages is Salamanca, with a 2,6%, followed by Ourense (3,2%), Pontevedra (3,3%) and Granada (3,4%).

[Source: Idealista]