According to information provided by Idealista, the real estate company and web portal, buying residential real estate in the city of Segovia is a good investment strategy if an investor is interested in getting the highest yield.
A detailed analysis of the local property market has shown that the majority of requests for apartments come mainly from current and future university students. In some cases, students are forced to share housing with other students in order to be able to pay the high fees charged by landlords.
In this regard, Miguel Tovar, the President of the Official Real Estate Agents Association of Segovia, said that there were not enough offers in the city to cover the growing demand. He explains: “[Currently], it creates a perfect situation, almost ideal for homeowners who are looking for additional income.”
The main tensions with a lack of supply are recorded in Saint Eulalia (the University of Valladolid) and San Lorenzo (IE University). Tovar emphasizes: "The closer a home to the university is, the higher the prices rise."
How much does it cost to rent an apartment in Segovia?
At the end of 2021, rental rates in the Castile and León autonomous community (note: the province and city of Segovia are located there) showed an annual value increase by 3.5%. In real terms, the rental of 1 square meter/month costs 7.44 euros.
Considering the average salary in the region, as recorded by InfoJobs, the Internet recruiting platform, locals give 32% of their earnings to pay rental fees. The average monthly income of 1,860 euros for the autonomous community and a housing unit of 80 square meters are taken into account.
Segovia is considered the province with the second most expensive square meter in Castile and León.
At the end of 2021, the rental charges increased by 1% in annual terms. The December price stopped at 73 euros per sq.m/month. The average salary in Segovia is €1,747 a month. It means that Segovia residents spend 37% of their earnings on rent.
The most desirable properties on the market
In 2021, commercial business premises, such as retail spaces or offices, have the highest expected ROI of 7.9%. In contrast, garages offer the most modest returns and barely reach 4%.
In addition, Segovia shows better-than-average rates in Spain in all property segments. The housing profitability in Segovia is 6.6%. It is the high demand for residential real estate and its profitability that determines the distinguished position of the capital city and the province of Segovia.
In 2021, the income that the owner of a rental property could receive was 7%. It remained the same last year. At the same time, this figure is higher than the 10-year old record when the yield was 3.9%. The figure is also higher compared to the record in 2016. It reached 5.3% that year. The available information gives Segovia a high level of rent profit.