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Jul 14, 2017

Gross rental yields in Spain have returned to normal


Last Updated: Jul. 14, 2017
BARCELONA - Ciutat Vella apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 242,550 1,037 5.13% 4,851 20.73
120 sq. m. 570,480 2,092 4.40% 4,754 17.43
BARCELONA - Eixample apartments
50 sq. m. 301,350 1,076 4.28% 6,027 21.51
120 sq. m. 649,200 1,799 3.32% 5,410 14.99
BARCELONA - Gracia apartments
50 sq. m. 260,800 1,021 4.70% 5,216 20.41
120 sq. m. 520,440 1,720 3.96% 4,337 14.33
BARCELONA - Les Corts apartments
50 sq. m. 227,250 1,070 5.65% 4,545 21.39
120 sq. m. 652.440 1,770 3.26% 5,437 14.75
BARCELONA - Sarria-Sant Gervasi apartments
50 sq. m. 250,500 982 4.70% 5,010 19.63
120 sq. m. 676,320 1,918 3.40% 5,636 15.98
MADRID - Centro apartments
50 sq. m. 231,550 928 4.81% 4,631 18.55
120 sq. m. 525,840 2,060 4.70% 4,382 17.17
MADRID - Chamartin apartments
50 sq. m. 218,650 832 4.57% 4,373 16.64
120 sq. m. 543,120 1,742 3.85% 4,526 14.52
MADRID - Chamberi apartments
50 sq. m. 251,550 959 4.57% 5,031 19.17
120 sq. m. 560,400 1,823 3.90% 4,670 15.19
MADRID - Retiro apartments
50 sq. m. 225,000 912 4.86% 4,500 18.23
120 sq. m. 522,000 1,558 3.58% 4,350 12.98
MADRID - Salamanca apartments
50 sq. m. 250,300 992 4.75% 5,006 19.83
120 sq. m. 649,920 2,173 4.01% 5,416 18.11
MADRID SUBURBS - Las Rozas apartments
50 sq. m. 143.100 647 5.43% 2,862 12.94
120 sq. m. 334,680 1,289 4.62% 2,789 10.74
MADRID SUBURBS - Majadahonda apartments
50 sq. m. 195,700 645 3.95% 3,914 12.89
120 sq. m. 353,520 1,234 4.19% 2,946 10.28
MADRID SUBURBS - Pozuelo de Alarcon apartments
120 sq. m. 457,080 1,564 4.11% 3,809 13.03
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Gross rental yields on apartments in Barcelona´s Ciutat Vella  - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - range from 4.40% to 5.15%.  Similar yields, or maybe slightly lower, can also be had in Madrid. Not great, though not untypical for cities like Madrid and Barcelona. Yields on the very smallest apartments now offer reasonable returns. But then smaller apartments tend to need more maintenance, so a higher yield is justified.

Prices of apartments. Prices per square metre (sq. m.) of apartments in Barcelona range from around EUR 4,500 to EUR 6,000, or  around 225,000-300,000 euros for a 50 sq. m. apartment. In the heart of Madrid, i.e., Chamartín, Chamberí, Retiro and Salamanca, prices per sq. m. range from around EUR 4,300 to EUR 5,400, or around 220,000 to 250,000 euros.  There´s very little price-difference between the two cities, and for all practical purposes costs are around the same.

In nearby upscale suburbs of Madrid such as Las Rozas, Majadahonda and Pozuelo de Alarcón, apartments are cheaper, with prices per sq. m. ranging from around EUR 2,800 to EUR 3,800.

Rents of apartments.  Rents are similar in the two cities, maybe slightly lower in Madrid, so that 50 sq. m. apartments will cost around 900-1,000 euros per month, while 120 sq. m. apartments will cost around 1,700-2,100 euros a month.

Conclusion: All these yields figures are higher than last year, which was higher than the previous year. Spain is once again beginning to look a possible investment destination.

When buying property, take into consideration that round-trip transaction costs are moderate to high in Spain. See our Property transaction costs analysis in Spain and Residential property transaction costs in Spain, compared to the rest of Europe.






Comments

#1 SHAWNMICHAEL | October 20, 2014

Many people from all around the world trying to get the best home for their living. It is great if someone is looking for their in home and trying to find it early. Many homes for sale Sedona AZ and you can get the desire one according to your own choice.

#2 MICHAEL JOHN | October 29, 2014

Your property analysis is attractive and the rates and percentages you show in your article provides the clear facts of the property value and with this, help many real estate professionals can get the idea from this post if they have someone to buy or sell their property. Sedona AZ real estate professionals are also interested in such real estate property guide and I do agree with Shawn too.

#3 GUSTAVO | June 12, 2016

Prices are definitely recovering after too many years of recession. The huge property stock held by banks have undermined the market prices. Since end 2014 and also 2015 Investing in Spanish property was more of finding bank repos in end 2015 and beginning of 2016 we can see that non bank property are changing hands and prices are stable and on the upside month after month. finding the right property are like kisses..location location location Invest in Spain Real Estate are here to help. Thanks for a great site with so much interesting info.

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