Best Spanish Cities for Buying Rental Investment Property
Best Spanish Cities for Buying Rental Investment Property
The gross yield from buying property for rental purposes decreased to 6.9% by the end of 2021 compared to 7.5% in 2020. However, in several cities the yield exceeds 8%.
According to a study by the Idealista portal, which analyzed sale and rental prices across various property categories, property yields significantly exceed the yield of 10-year government bonds (0.3%). Offices remain the most attractive investment category with a gross yield of 11.2% (versus 10.8% a year earlier), followed by commercial premises at 9.4% (previously 9.3%), and parking spaces at 6% (versus 6.9%).
Residential Property Yields by Provincial Capitals
Among provincial capitals, Lleida leads with a yield of 8.8%. It is followed by Murcia (8.1%), Huelva (7.9%), Santa Cruz de Tenerife (7.5%) and Almería (6.9%).
The lowest yields are shown by San Sebastián (3.7%), Palma (4.5%), La Coruña (4.6%), as well as Ourense, Madrid and Barcelona (all at 4.7%).
Office Yields by Cities
Offices in Seville show the highest yield at 13.8%, followed by Toledo (9.3%), Huelva (9.1%), Vitoria (8.8%), León and Almería (both at 8.5%). Madrid shows 6.9%, while Barcelona shows 6.5%.
The lowest office yields were recorded in Granada and Bilbao (6.1%), Valencia (6.2%), Ourense and Córdoba (6.4%).
Parking Space Yields by Cities
Ávila offers the highest parking space yield at 9.2%, followed by Castellón (8.3%) and Guadalajara (8.1%). Barcelona shows 6.3%, while Madrid shows 4.8%.
The lowest yield is in Salamanca (2.8%), Granada and Ourense (3%), Lugo (3.2%), Santander and Palencia (3.4%).
Complete Yield Table by Provincial Capitals
National averages: residential 6.9%, offices 11.2%, commercial premises 9.4%, parking 6%.
| City | Residential | Offices | Commercial | Parking |
|---|---|---|---|---|
| Lleida | 8.8% | 7.1% | 10% | 6.5% |
| Murcia | 8.1% | 6.6% | 9.9% | 7.5% |
| Huelva | 7.9% | 9.1% | 10.5% | 6.7% |
| Santa Cruz de Tenerife | 7.5% | 6.5% | 9.2% | 4.7% |
| Almería | 6.9% | 8.5% | 8.8% | 4.7% |
| Castellón | 6.6% | 7.6% | 8% | 8.3% |
| Guadalajara | 6.5% | — | 9% | 8.1% |
| Jaén | 6.5% | — | 7.7% | 3.7% |
| Ávila | 6.4% | — | 10.9% | 9.2% |
| Teruel | 6.4% | — | 6.7% | — |
| Toledo | 6.4% | 9.3% | 10.1% | 5.9% |
| Alicante | 6.3% | 7% | 9.5% | 5.3% |
| Córdoba | 6.3% | 6.4% | 8.1% | 5% |
| Huesca | 6.2% | — | 10.4% | — |
| Soria | 6.2% | — | — | — |
| Zaragoza | 6.2% | 8.3% | 9.8% | 5.1% |
| Cáceres | 6.1% | — | 8.2% | 4.6% |
| Ciudad Real | 6.1% | — | 8.2% | 4.9% |
| Segovia | 6.1% | — | 7.6% | 4.1% |
| Seville | 6.1% | 13.8% | 9.6% | 5.6% |
| Valencia | 6.1% | 6.2% | 8.1% | 4.7% |
| Albacete | 6% | — | 7.2% | 4.2% |
| Badajoz | 6% | 7% | 8% | 4.4% |
| Oviedo | 6% | 6.9% | 9.9% | 5.4% |
| Palencia | 6% | — | 7.8% | 3.4% |
| Las Palmas de Gran Canaria | 5.9% | 6.6% | 9.1% | 5.3% |
| León | 5.9% | 8.5% | 8.8% | 5.5% |
| Lugo | 5.9% | — | 12.6% | 3.2% |
| Tarragona | 5.9% | — | 9.9% | 5.8% |
| Zamora | 5.8% | — | 7.5% | — |
| Valladolid | 5.7% | 7.2% | 8.6% | 4.3% |
| Burgos | 5.6% | 7.9% | 9.2% | 4.8% |
| Málaga | 5.5% | 7.7% | 9.2% | 4.9% |
| Salamanca | 5.5% | — | 7.5% | 2.8% |
| Santander | 5.5% | 7.2% | 8.6% | 3.4% |
| Logroño | 5.4% | 7.8% | 7.8% | 4.7% |
| Girona | 5.1% | — | 8.2% | 5.6% |
| Granada | 5.1% | 6.1% | 8.8% | — |
| Pontevedra | 5.1% | — | 8.1% | — |
| Cádiz | 5% | — | 7.9% | 4.8% |
| Pamplona | 5% | 8% | 9.4% | 6% |
| Vitoria | 5% | 8.8% | 8.6% | 3.8% |
| Bilbao | 4.9% | 6.1% | 9.9% | 4.2% |
| Barcelona | 4.7% | 6.5% | 8.6% | 6.3% |
| Madrid | 4.7% | 6.9% | 8.1% | 4.8% |
| Ourense | 4.7% | 6.4% | 8.3% | 3% |
| La Coruña | 4.6% | 6.5% | 6.9% | 4.3% |
| Palma | 4.5% | 7.5% | 7.9% | 5.1% |
| San Sebastián | 3.7% | 7.8% | 8.8% | 4% |