Buy to rent: Which area is more profitable?

Buy to rent: Which area is more profitable?

Based on the latest data on the price of housing for sale and rent corresponding to the month of March, the portal Fotocasa elaborated an analysis shows that the annual profitability that can be obtained in Spain from a property purchased to be placed later on a rental basis is 5.7%, while in 2016 it was 5.3% and in 2015 it was 5.2%.

The report also reveals that the communities of Catalonia, Madrid, the Canary Islands and the Balearic Islands are the most profitable to buy a home and rent it (this year they offer a return of 6.6%, 5.9%, 5.9% and 5,8%, respectively). They emphasize that in one year Madrid went from being the fourth most profitable community to climbing the second position.

Beatriz Toribio, Head of Studies at Fotocasa, says that "with the current context of low rates and the volatility of markets, these high returns explain that investors bet on the purchase of housing to put it in rent against the low ratios they offer Deposits and funds, "according to El Economista. The specialist adds that there is still a lot of future for this market in the country, because it is opening up more and more to the culture of rent.

The study also involves more local areas, including the convenience of buying a house to rent in 20 Spanish municipalities with the largest number of inhabitants.

For this market the results show that Hospitalet de Llobregat (with 6.5%), Cordoba (5.7%) and Malaga (5.5%) are the most profitable municipalities; While Coruña (3.7%), Vigo (4.3%), Barcelona (4.4%) and Bilbao (4.5%) are less convenient to buy a home, since the cost of second- Hand is not falling at the same pace as in other municipalities and the rental price is more balanced. It stands out in this category Barcelona, that in 2016 was in the number 10 position among the most profitable municipalities and in 2017 occupies the position number 18.

+34 972 65 09 38
Contact us
This website uses its own and third-party cookies to improve the browsing experience as well as for analysis tasks.

What are cookies?

A cookie is a small file stored on the user's computer that allows us to recognize it. The set of cookies help us improve the quality of our website, allowing us to monitor which pages are useful to the website users or and which are not.

Acceptance of the use of cookies.

Necessary technical cookies

Always active

Technical cookies are absolutely essential for the website to work properly. This category only includes cookies that guarantee the basic functions and security functions of the website. These cookies do not store any personal information.

Analytic cookies

All cookies that may not be particularly necessary for the website to function and are used specifically to collect personal data from the user through analysis, ads and other embedded content are called unnecessary cookies. You must obtain the user's consent before running these cookies on your website.