Posted on July 26, 2016 in Property

Profitability from investments in housing in Spain reached 6.1% in the second quarter of the year, compared with 5.5% in the same period a year ago. Moreover, this percentage is well above the margin offered by 10 year bonds, which stood at around 1.5% in the latest auctions.

These are some of the conclusions from a study carried out by property portal, idealista, which analyses prior sales and rentals of different real estate products in order to calculate their gross profitability.

According to the analysis, commercial premises remain the most profitable real estate investment, as buying or renting one of these properties offers a return of 7.7%, in line with the figures offered a year ago. Furthermore, office premises offer returns of 7.3%, up 1% compared with last year, and the profitability on garage premises has risen from 4.6% to 5.6%.

El Economista reported that, among the Spanish capitals, the study found that housing investment in Lleida is most profitable, with returns of 7.7%, followed by Palma de Mallorca (6.7%), Las Palmas de Gran Canaria (6.5%), Alicante (6.4%) and Huelva (6.3%), while the profitability in both Madrid and Barcelona reached 5.5%.

In contrast, the lowest returns for investors on homes for rent in Spain, are those obtained in San Sebastián (3.7%), Ourense (3.7%), A Coruña (3.9%) and Zamora (4.3%).