The rental return in Spain was 6.38% at the end of 2021. Madrid and Barcelona did not reach 5%.

The rental return in Spain was 6.38% at the end of 2021. Madrid and Barcelona did not reach 5%.

The rental return in Spain was 6.38% at the end of 2021. Madrid and Barcelona did not reach 5%.

Apartments for Rent.

Gross rental profitability in Spain exceeds pre-pandemic levels. In the October-December period it was 6.38%, according to piso.com. This is the annual income that a homeowner obtained by putting it up for rent after its acquisition.

If we take into account that the average purchase price of a typical residence of 90 square meters in Spain in the fourth quarter was 169,020 euros (1,878 euros per square meter) and that the average monthly income was 898 euros, the owner obtained a total of 10,778 euros gross per year.

Therefore, it achieved a gross return on the asset of 6.38%. This is a drop of one hundredth compared to the end of 2020 (6.39%) and an increase of seven hundredths in relation to the third quarter of 2021 (6.31%).

In the specific case of Madrid and Barcelona, ​​both cities are below average. Specifically, Madrid had a return of 4.66%, and Barcelona, ​​4.80%. “While Madrid suffered a drop of practically one point compared to the end of 2020, Barcelona experienced an increase of eleven hundredths in relation to the same period,” says Ferran Font, Director of Studies at piso.com.

The highest profitability was in Murcia, with 7.67%. Behind her were Zaragoza (6.56%), Seville (6.44%), Las Palmas (6.14%) and Valencia (5.92%). At the opposite extreme, Palma de Mallorca (4.31%), A Coruña (4.39%), Girona (4.61%) and Vitoria (4.64%).

From Castilla-La Mancha to the Balearic Islands

By autonomous communities, the range varies between profitability from 7.82% registered in Castilla-La Mancha to 4.23% in the Balearic Islands. The most competitive prices for the purchase of residences in autonomous communities were found in Castilla-La Mancha, Aragón (7.58%), Extremadura (7.57%) and Navarra (6.51%). In the profitability ranking, the least beneficial communities were the Balearic Islands, Castilla y León (4.68%), the Basque Country (4.72%) and Madrid (4.81%).

“Throughout 2021, the impact of Covid-19 on the real estate sector, together with the drop in interest rates on financial products, have caused investors to bet on safe-haven assets such as those that make up the real estate market” , points out Ferran Font. And he concludes: “Real estate has become a profitable, safe asset that appreciates in value over time.”

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