Is it profitable to buy an apartment to rent?

The decline in recent years yield the most conservative investment options such as term deposits, led many small investors to buy property for subsequent lease.

In 2018, the profitability remained stable, the highest yields were achieved at the expense of renting commercial premises.

The growth in rental prices in certain areas, and the use of apartments for tourism purposes is another reason, which made housing investment resource again.

How profitable to buy an apartment in 2019.

If we look at the data compiled in 2018, gross income from buying a house, for subsequent delivery in rent has remained stable, increasing by one tenth, to 7.4%. According to real estate portal Idealista, the rental yield is four times higher compared to the proposed 10-year government bonds.

By property type, commercial facilities remain the most lucrative real estate investments. Thus, the purchase of commercial premises in Spain for rental yields gross income of 8.8% compared to 8.4% of the proposed year ago, the offices showed a productivity of 8.4% (year ago it was 7.8%), and the profitability of the garages was 6.2% compared to 5.5% (the same period last year).

Among the Spanish cities to rent a house in Leide been the most beneficial to 7.6%. Followed by Santa Cruz de Tenerife (7,2%), Huelva (6.8%) and Almeria (6.7 per cent). The drop in rental prices in Barcelona reduced its yield to 4.8%, while in Madrid it was 5.1%. However, the lowest yield in Spain were given to the owners of rental housing in San Sebastian (4,2%), Ourense (4,3%), Pamplona and La coruña (4.7% in both cases).

Facilities and offices

The room is a product which has the highest yield in all capitals. The highest yield was obtained in Malaga (12.9 per cent), followed by Pontevedra (11,4%), Leida (11,1%), Oviedo (10,4%) and Lugo (10.2 percent). Then was located Huelva (9,4%), Zaragoza (9.3%), and Las Palmas de Gran Canaria (9.3 per cent). In Barcelona the figure was 8.5%, while in Madrid is 7.3%.

On the contrary, Salamanca has offered less attractive for investors (yield of only 6.2%), followed by a coruña (6,4%), Cadiz (6.5%) and Caceres (6.9 percent).

As for offices, it offices, located in Sevilla, showed the highest yield among the cities with a gross profit of 8.5%. They were followed by Leida (7,8%), Zaragoza (7.7%) and Pamplona (7.7 per cent). In Madrid the margin increased to 6.6% and in Barcelona - 6%. Most were low income Santander (5,6%), a coruña (5,7%), Granada (5,8%), Bilbao (5.8%) and Valencia (5,9%).

Garages

Finally the garages, they were considered the least profitable product for the investor in many areas. The highest profitability was achieved in Malaga (9,9%), followed by Almeria (7.3%) and Burgos (6.8 percent). In Barcelona, the yield amounted to 3.7% and in Madrid by 3.4%. The least profitable garages were in Granada, from 2.6%, then Salamanca (2,7%), Bilbao (2.9%) and Oviedo (3%).