Where to buy rental housing: most profitable cities, districts and neighborhoods

• MARÍA HERNÁNDEZ |

  GABRIELA GALARZA (GRAPHICS)

  Madrid

Updated on Friday, 12November2021-02: 07

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Housing has traditionally been the main focus of attraction for small Spanish investors. Depending on the economic moment, it becomes a safe haven asset or a source of profitability that allows them to complete their income and, in the heat of the market boiling, many people wonder not only if it

, but if it is interesting buy it to rent and

to obtain the highest possible profitability.

At a general level, the profitability of buying a home and putting it up for rent in Spain stood at 6.4% in the third quarter of 2021, 1.2% more than 5 years ago (5.2% in 2016) and 2.2% more than 10 years ago (4.3% in 2011), according to the study by quarters of

prepared by Fotocasa.

The figures reflect that the increase in profitability is a constant in the country's residential market, even when the sector faced the recovery after the burst of the bubble in 2008. Only the coronavirus has temporarily interrupted that trend, as pointed out from the real estate portal: acquiring a property to put it up for rent in September is 0.6 point less profitable than in 2020 (7%).

"The increase in profitability is a trend that is repeated year after year, with the exception of the latter, due to the decrease in the price of rents since the beginning of 2021. Likewise, this economic benefit of buying a house to put it on the rental market it shows figures higher than 2019, and also the last five years and decade ", explains

, Director of Studies and Spokesperson for Fotocasa.

"In fact, investment in real estate assets has become a refuge in the face of the uncertainty caused by the health crisis. Many small individuals have started to invest when they perceive this market as safe after the evolution and such positive recovery after the pandemic" adds Matos.

Where is it most profitable to do it?

By autonomous communities,

have a profitability equal to or above the Spanish average (6.8%). These are the Region of Murcia (7.9%), Navarra (7.2%), the Valencian Community (7.1%), Catalonia (6.6%), the Canary Islands (6.5%) and Cantabria (6 ,4%). Below the average profitability are the communities of the Balearic Islands (5%), Madrid (5.2%), Galicia (5.4%), the Basque Country (5.6%), Extremadura (5.8%), Andalusia (5.9%), La Rioja (6.0%), Castilla y León (6.0%), Asturias (6.1%), Aragon (6.2%) and Castilla-La Mancha (6, 3%).

At the

level

,

is at the forefront of the analyzed localities, going from 4.5% to 8.9% profitability in 10 years; it was the most profitable city in Spain in the third quarter of the year. They are followed by Lleida capital, with 7.7%; Agüimes, with 7.6%; Algeciras, with 7.3%; Manresa, with 7.2%; Cartagena, with 7.2%; Jerez de la Frontera, with 7.2%; Santa Lucía de Tirajana, with 7.1%; Reus, with 7.1%; Almería capital, with 6.9%; La Línea de la Concepción, with 6.8%; Murcia capital, with 6.8%; Santa Cruz de Tenerife capital, with 6.8%; Roquetas de Mar, with 6.8%; Lucena, with 6.7%; Telde, with 6.7%; Badalona, ​​with 6.6%; Dos Hermanas, with 6.6%; Alcalá de Henares, with 6.4%; Tarragona capital, with 6.4% and Ponferrada with 6.4%.

On the opposite side are San Sebastián

, with a profitability of 3.7%;

Sant Cugat del Vallès;

with 3.8%;

Santiago de Compostela, with 4%;

Pozuelo de Alarcón, with 4.1%;

Getxo, with 4.1%;

Estepona, with 4.2%;

Barcelona capital, with 4.3%;

Fuengirola, with 4.3%;

Sitges, with 4.4% and Coruña capital, with 4.4%.

Fotocasa's analysis also offers data on the most profitable districts and from them it can be deduced that the most profitable in September 2021 and that are above 8% profitability are the Northern district of Granada capital, which reaches 8.4% of profitability, followed by the Sevillian district of Cerro-Amate, with 8.2% and Alicante's Pla-Carolinas, with 8.1%.

On the other hand, the districts that have a profitability of less than 3% in Spain are El Sardinero de Santander, with 2.7% and the Centro district of San Sebastián, with 2.8%.

Madrid, Barcelona and Valencia

As soon as

In the

capital

, the

district

has gone from 6.8% to 7.8% in profitability in the last five years, becoming

in the third quarter of 2021. It is followed by the districts of Puente de Vallecas (7.1%), Usera (6.5%), Carabanchel (6.1%), Latina (5.8%), Villa de Vallecas (5.5%), Moratalaz (5%), Vicálvaro (5 %), San Blas (5%), Ciudad Lineal (4.5%), Tetuán (4.5%), Arganzuela (4.4%), Barajas (4.2%), Hortaleza (4%), Centro (3.9%), Moncloa (3.8%), Chamberí (3.8%), Fuencarral (3.8%), Retiro (3.6%), Chamartín (3.4%) and Barrio de Salamanca (3.4%).

As for

capital, the

district

has gone from 6.7% to 6.1% in profitability in the last five years and, despite the 0.6% decrease, it has become the most profitable in the capital Catalan. They are followed by Horta-Guinardó (4.9%), Sants-Montjuïc (4.8%), Sant Andreu (4.8%), Sant Martí (4.5%), Ciutat Vella (4.2%), Gràcia (4.1%), Eixample (3.6%), Les Corts (3.4%) and Sarrià-Sant Gervasi (3.4%).

In

capital, the

district

has gone from 6.3% to 7.7% profitability in 5 years, becoming the most profitable in the Valencian capital.

They are followed by Rascanya (7.5%), Benicalap (6.5%), Jesús (6.4%), La Saïdia (6.4%), Patraix (6.3%), Poblats Marítims (6%) , Benimaclet (5.9%), Quatre Carreres (5.6%), Algirós (5.1%), Camins al Grau (5.1%), Extramurs (5%), Campanar (4.8%), Ciutat Vella (4.5%), El Pla del Real (4.1%) and L'Eixample (4%).

Most profitable neighborhoods

Bringing the magnifying glass closer to the neighborhoods, the most profitable in the whole country in the third quarter was the Sevillian neighborhood of

, in the Macarena district,

On the other hand, the Madrid neighborhood of

, in the Salamanca district, is the one with the

, specifically 2.7% in September.

In

, the most profitable neighborhood continues to be

with 7.4% profitability, followed by the Numancia neighborhood (7.1%).

On the contrary, the neighborhood of the capital with the least profitability is Recoletos, with 2.7%, followed by the Castellana neighborhood, with 3%.

In

, the most profitable neighborhood continues to be

, followed by Provençals del Poblenou (5.3%).

On the other hand, the neighborhoods of the Catalan capital with the least profitability are

with 3.2% each.

In

, the most profitable neighborhood continues to be Nou Moles with 6.9%, followed by El Cabanyal-El Canyamelar (6.5%).

On the other hand, the neighborhoods of the Valencian capital with the least profitability are El Pla del Remei with 3.2% and Zona Gran Vía with 3.9%.

According to the criteria of The Trust Project

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