Commercial property remains the most profitable real estate asset in Spain
The investment in housing for its subsequent rent offers average yield of 7.3% in the second quarter of 2017.
Commercial premises remain the most profitable product (8.2%), followed by offices, homes and parkings.
The profitability offered by housing is skyrocketing. According to a study carried out by the Idealista real estate portal, the return on investment in houses for rental has increased in the second quarter of the year to 7.3%. In the same period of the previous year this rate was 5.5%.
The purchase of a house to rent and obtain a profitability far superior to the other financial assets returns. For example, the 10-year State Bond continues to offer a lower return (1.5%). The rise is due to the strong demand for rents and the price of flats is still lower than ten years ago and, above all, it rises. BBVA Research announced that, according to its forecasts, the rise will be 3% per year.
Among the Spanish capitals, Las Palmas de Gran Canaria is the most profitable, with 8%. Followed by Lleida (7.7%), Huelva and Alicante (6.8% in both cases). The profitability in Barcelona is 5%, lower than that of Madrid (5.8%). On the other hand, the lowest yields in Spain are obtained by renters in San Sebastián (3.9%), Ourense, A Coruña (4% in both cases) and Zamora (4.6%).
However, according to Idealista’s study, which relates the sales and rental prices of different real estate products to calculate their gross profitability, the commercial premises are still the most profitable real estate investment, ahead of the purchase of a home. Acquiring a commercial property in Spain to rent it offers a gross return of 8.2%, compared to the 7.6% they gave a year ago.
Commercial properties are the most profitable product in most capitals. The highest return is obtained in Córdoba and Zaragoza, where they yield rates of 9.1%. They are followed by the yields of Huelva (9%), Malaga (8.9%) and Las Palmas de Gran Canaria (8.8%). In Barcelona the rate is 8.3%, while in Madrid it remains at 7.7%. Palencia offers the lowest investment attractiveness (only 5.1% profitability), followed by Castellón (5.6%) and Jaén (5.9%).
The offices offer a return of 7.5% (a year ago was 6.3%). The offices of Malaga show the highest return of the capitals, with a gross return of 7.2%. Followed by Zaragoza (7.1%), Cordoba (6.9%) and Palma de Mallorca (6.8%). In Madrid the profitability amounts to 6.3%, while in Barcelona it drops to 6%. On the opposite side are the yields of A Coruña (4.7%), Valencia (4.9%) and Santander (5.2%). The office market is not as uniform as other products, so it is impossible to obtain statistical data of more than half of Spanish capital, according to the real estate portal.
At the end of the list are car parkings, the least profitable product for the investor in many capitals. Profitability has been maintained during this year, remaining at 4.6%. The highest profits are obtained in Las Palmas de Gran Canaria (8.4%), followed by Murcia (5.9%), Girona (5.4%) and Santa Cruz de Tenerife (5%). The capital with the cheapest garages is Salamanca, with 2.3%, followed by Barcelona (2.6%) and A Coruña, with 2.7%. Next are Madrid (3%), Vitoria and Granada (3.1% in both cases).
Source: El Pais