Profitability offering housing investment to put them in rent increased 7.3% in 2017, from 6.3% the previous year, due to the strengthening experiencing demand for rentals, according to a study by the idealist real estate portal.

The study, which relates sales prices and rental of various real estate products to calculate gross profit shows that the commercial space remains the most profitable real estate investment. Specifically, buy a place in Spain to rent it offers a gross return of 8.4% compared to 8.5% that was a year ago.

The offices offer a yield of 7.8% compared to 7.6% a year ago, and in the case of garages profitability stood at 5.5% from 6.1% 12 months ago .

Among the Spanish capital, Las Palmas is the more profitable, with 7.8%. Followed Lleida (7.7%), Santa Cruz de Tenerife (7.4%), Huelva and Almeria (6.9% in both cases). For its part, the falling price of rent in Barcelona has reduced its profitability to 4.9%, while in Madrid stood at 5.7%.

However, the lower yields of Spain are the ones that get homeowners rent in San Sebastián (4.2%), A Coruña (4.3%) and Orense (4.3%). Then Zamora (4.7%) is placed.

shops and offices

Regarding local, idealistic explains that they are more profitable product has in most capitals. The higher return is obtained in Pontevedra (10.7%). Followed the profitability of Cordoba and Zaragoza, which shed 9.5% respective rates and 9.4% respectively.

Then the cities of Las Palmas (9.1%), Oviedo (8.8%) and Barcelona (8.5%) are located. In Madrid the rate is set at 7.8%, while Castellón offers with attractive local retail investor (only 5.8% return), followed by Cádiz, Logroño and La Coruna (6.1% in three cases).

As offices, Zaragoza have the juicier between capital return, with 7.4% crude yield. Followed Oviedo (7.1%), Malaga (7.1%) and Santa Cruz de Tenerife (7%).

Madrid profitability amounted to 6.6%, while in Barcelona down to 5.8%. On the opposite side yields Coruna (4.8%), Valladolid (5.4%), Santander (5.4%), Almeria (5.5%) and Valencia (5.5) are located.

The real estate portal explains that the office market is not as uniform as that of other products, making it impossible to obtain statistical data from more than half of Spanish capitals.

Garages, less profitable product

Finally, he noted that the garages are, in contrast, the least profitable product for the investor in many capitals. The higher return is obtained in Palma (7.9%), followed by Las Palmas (5.8%) and Malaga (5.7%).

The capital is less profitable garages Salamanca, 2.6%, followed by Corunna (3%), Barcelona, ​​and Madrid Vitoria share a rate of 3.1.

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Article source: https://businessmonkeynews.com/en/the-return-on-investment-in-housing-for-rent-grew-by-7-3-in-2017/