Office space in Spain has a high profitability
Experts at Idealista analyzed the real estate market and called office space in Spain the most profitable object. They occupy the first place in terms of profitability – about 11.3% per annum.
In second place in the ranking of the best real estate investments are commercial premises, their profit is about 9.5% per annum. Residential real estate yields more than 7% and garage space yields 6% a year.
According to statistics for the last quarter, the gross yield on the acquisition of residential properties for future rent reached 7.1% per annum. Compared with the same period last year, this figure rose by 0.1%.
The leader in the profitability of housing in Spain is Murcia. Here, real estate brings an average of 8.8% per annum. In second place is the city of Lerida, where the profitability is at 8.3%. They are followed by Huelva with 7.7% per annum and Cuenca with 7.4% per annum. The lowest profitability of housing is on the market of San Sebastian, where the property brings only 3.7% per annum. As for Barcelona, the profitability of apartments and houses in the city is 5.2% per annum.
If we consider the income from commercial premises, the most profitable is to buy them in Avila. Here, the profit from this type of real estate is at 10.8% per annum, in second place there are two cities with the same rates of 10.5% – Murcia and Zaragoza. Next come Leida and Bilbao, where the yield of commercial property is 10.4% per year. The lowest benefit from investing in this type of space in Coruña and Albacete is 7.2% per annum.
Office space in Seville provides the highest annual return in Spain – 12.6%. In second and third place are Huelva and Almeria with 10.1% and 10% per annum. Investments in offices in the market of La Coruña will bring the least income in the country – at 5.9%. However, in this case, there are peculiarities. The office market in Spain is not homogeneous, and rates in different regions can be dramatically different. This peculiarity makes it difficult to analyze the sector and obtain the most realistic data.
Garages almost all over the country are not highly profitable. The highest yield of such facilities is in Castellón de la Plana, which is 8.6% per annum. Only 2.9% bring garages in Salamanca.
The real estate market in Spain this year is experiencing a surge of interest from foreign investors. After a relative lull last year, the segment is gaining momentum again, which contributes to an increase in prices for facilities in major cities and resort areas of the country.