Property investment in Spain is starting to show increased returns compared to other long term investment plans and even the lowest returns can offer double the 10 year state bonds of 2%. Returns differ according to which area of Spain but are reported to be between 4.6% and 9.2%.
Property Investment Spain – Commercial
A study conducted by Idealista looked at property investment Spain from both the sale and rental prices of Spanish property to calculate gross profitability. The result concluded that commercial premises are presently the most profitable property investment in Spain and when buying commercial premises to rent out it offers a gross return of 7.6%, compared to 6.2% 12 months ago.
The investment returns for commercial business premises in some of the capitals were as follows;
• Cordoba 9.2%
• Granada 8.5%
• Gran Canaria 8.3%
• Málaga 8.1%
• Zaragoza 8%
• Madrid 7.6%
• Barcelona 7.5%
Property Investment Spain – Housing
Housing investment returns have also increased, looking at the capitals Lleida is the most profitable to date with a return of 7.8% followed by Gran Canaria at 6.2%, Mallorca at 5.8% and Huelva and Huesca being 5.7%. Both Madrid and Barcelona were 5% and 4.8% respectively.
At the other end of the scale the lowest return on rental housing was seen by Ourense which was 3.3%, La Coruna came in at 3.6% and San Sebastián was 3.8% followed by Lugo offering 4% return on investment.
The time to buy a repossessed property in Spain could never be better than it is now, there are many investor opportunities both in the commercial resorts and inland areas. We are seeing a growing trend in property sales in City apartments such as Barcelona and Valencia, many people now prefer to buy an apartment in a city location against buying a property in the Costas. City breaks are a popular choice for many people so a property as investment in Barcelona can be a good move.