Buying homes in Spain continues to be a major challenge for Spanish citizens. Currently, the increase in interest rates, the high prices depending on the different autonomous communities and the complexity of obtaining a mortgage are some of the reasons why many people opt for renting or find no other alternative than that. . It is important to note that in the most prominent and popular autonomous communities, such as Madrid and Barcelona, the prices are in the lead in terms of the highest.
However, these cities have given way to other more dynamic ones, where sales and rental prices have also experienced a significant increase. In fact, the levels reached before the 2008 crisis have been exceeded, when housing costs reached very high figures.
Profitability for renting in Spain
Buying a house and later renting it is possibly more profitable than carrying out any other process after buying a home. In this case, in Spain, the average profitability for renting through the different autonomous communities is between 6%-7%, after the data published by the Idealista real estate portal.
“Rental prices have a ceiling, while those for sale do not, as they have the possibility of financing. Although generalizing in the real estate market is always wrong, it frequently causes markets with higher sales prices to have lower rental yields, as happens in San Sebastián, Palma or Barcelona”, explains Francisco Iñareta, spokesman for the real estate portal.
most profitable provinces
Among the most profitable provinces and above average, to buy a home whose objective is to rent it, Cuenca stands out, with up to 9.22% profitability. Followed by Toledo (9.18%) and Ciudad Real (9.13%). So the first most profitable city could be Castilla-La Mancha. Outside this region, Valencia is the fourth most profitable city, with an average of 8.83%.
least profitable provinces
Among the provinces that are less profitable and are below the average, to buy and rent later in Spain, are the Region of Murcia, with 4.72%, followed by the Balearic Islands, with 4.86% or Guipuzkoa with 4.97%, in that order. In addition to the south, also, Malaga, with 5.39% and Bizkaia (5.42%) and even Madrid (5.80%), being quite striking. These follow in the tail of the cities that maintain the worst profitability, the explanation for which lies in their economic and tourist attraction, which is reflected in profitability.