How much does it cost to rent a house in Spain? For a typical house with an area of 90 square meters, the price of which is EUR 169,020, and the average monthly rent is EUR 898, the owner received EUR 10,776 per year, which gave a yield of 6.38% from renting out the asset at the end of 2021, according to the data of Ріѕоѕ.сом. That is, it is the annual income that the owner of the property received by renting it out after the acquisition. But where are the most profitable houses to buy and rent?
From 7.82% to 4.23%. This is the range of profitability offered by the autonomous communities of Spain, according to the rating of Pisos.com. Castilla-La Mancha was the region offering the highest gross rental yield at 7.82%. It is followed by Aragon and Extremadura, in both cases above 7%.
The profitability of rented real estate in Navarre (6.51%) and the Canary Islands (6.45%) is also higher than the national average. Thus, in the analysis of autonomous communities, the most competitive prices for the purchase of housing in autonomous communities were found in Castile-La Mancha, Aragon, Extremadura and Navarre. Meanwhile, in the regions of Murcia and Andalusia, the gross rental yield was 6.28% in both cases.
Those homeowners who purchased real estate for rent in Asturias, Valencia, Catalonia, Cantabria, La Rioja and Galicia received a yield of more than 5% at the end of 2021. The regions with the lowest gross rental yield were the Balearic Islands (4.23%), Castile and Leon (4.68%), the Basque Country (4.72%) and the Community of Madrid (4.72%).
«Throughout 2021, the impact of COVID-19 on the real estate sector, as well as the decline in interest rates on financial products, forced investors to bet on safe assets, such as those that make up the real estate market», says Ferran Font, CEO of Research at Pisos.com. «Real estate has become a profitable, safe asset that is overvalued over time», the expert notes.
Murcia is the most profitable capital
Depending on the capital, Murcia was positioned as the city with the highest yield (7.67%). Then, the capitals with the highest average rental yield were Zaragoza (6.56%), Seville (6.44%), Las Palmas (6.14%) and Valencia (5.92%).
The rating is completed by Palma de Mallorca (4.31%), La Coruna (4.39%), Girona (4.61%) and Victoria (4.64%), as these places in Spain have the highest real estate prices. Barcelona (4.80%) and Madrid (4.66%) ranked thirteenth and sixteenth with yields below the national average. In this context, Ferrand Font emphasizes that «while Madrid experienced a drop of almost one point compared to the end of 2020, Barcelona experienced an increase of eleven hundredths compared to the same period».