PROPERTY SEARCH

Date Published: 29/01/2025

The most profitable places to buy and rent out property in Spain... and the top one may surprise you!

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Recent data have revealed that one up-and-coming autonomous community and southeast Spain is the most profitable region to buy a house and rent it out

The most profitable places to buy and rent out property in Spain... and the top one may surprise you!

Investing in property to rent out, whether on a short-term or long-term basis, has become an increasingly attractive option for those looking to generate steady income. This is particularly appealing to retirees or individuals with substantial wealth in Spain, as well as international investors who see Spain as a lucrative market.

The combination of a strong tourism sector and rising rental demand makes property investment a compelling opportunity, and a new study has revealed the areas of the country which offer the greatest return on investment.

The Region of Murcia, along with Catalonia, has emerged as the most profitable place in Spain to buy property for rental purposes. In particular, San Javier and Mazarrón rank among the top three municipalities with the highest profit margins nationwide.

According to a recent report from the real estate portal Fotocasa, one of Spain’s largest property platforms with over 1.5 million listings, the average annual profitability of buying a home to rent in 2024 reached 7.6% in Murcia and Catalonia. This figure is nearly a full percentage point above the national average of 6.7%.

Certain towns and cities have reported even higher returns. In 2023, five Spanish municipalities saw profitability exceed 10%, including two in the Region of Murcia. San Javier (10.9%) and Mazarrón (10.6%) secured the second and third spots nationally, only behind El Ejido (Almería), which leads with an 11.6% return.

Fotocasa highlights that the national average profitability at the end of 2024 was 0.3% higher than in 2023 and 1.7% above the figure recorded a decade ago.

The study also indicates that property rental yields are currently among the highest in Spain’s historical data. While both property purchase and rental prices have been rising, the cost of renting has nearly doubled, with a 14% increase compared to an 8.4% rise in house prices.

Besides Murcia and Catalonia, six other Autonomous Communities surpassed the national average return: Comunidad Valenciana (7.3%), Castilla y León (7.1%), Aragón (7.1%), Asturias (7.1%), Castilla-La Mancha (7.1%) and Navarra (6.8%).

On the other hand, nine regions recorded lower-than-average profitability: Extremadura (6.6%), La Rioja (6.6%), Cantabria (6.6%), the Basque Country (6.1%), Galicia (6%), the Canary Islands (5.9%), Andalucía (5.8%), Madrid (5.8%) and the Balearic Islands (4.6%).

To see property for sale in San Javier and around Murcia, visit Simply Spanish Homes, or for more local news, events and other information go to the home page of Murcia Today

Image: Turismo San Javier

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