Buy to rent: Which area is more profitable?

Buy to rent: Which area is more profitable?

Based on the latest data on the price of housing for sale and rent corresponding to the month of March, the portal Fotocasa elaborated an analysis shows that the annual profitability that can be obtained in Spain from a property purchased to be placed later on a rental basis is 5.7%, while in 2016 it was 5.3% and in 2015 it was 5.2%.

The report also reveals that the communities of Catalonia, Madrid, the Canary Islands and the Balearic Islands are the most profitable to buy a home and rent it (this year they offer a return of 6.6%, 5.9%, 5.9% and 5,8%, respectively). They emphasize that in one year Madrid went from being the fourth most profitable community to climbing the second position.

Beatriz Toribio, Head of Studies at Fotocasa, says that "with the current context of low rates and the volatility of markets, these high returns explain that investors bet on the purchase of housing to put it in rent against the low ratios they offer Deposits and funds, "according to El Economista. The specialist adds that there is still a lot of future for this market in the country, because it is opening up more and more to the culture of rent.

The study also involves more local areas, including the convenience of buying a house to rent in 20 Spanish municipalities with the largest number of inhabitants.

For this market the results show that Hospitalet de Llobregat (with 6.5%), Cordoba (5.7%) and Malaga (5.5%) are the most profitable municipalities; While Coruña (3.7%), Vigo (4.3%), Barcelona (4.4%) and Bilbao (4.5%) are less convenient to buy a home, since the cost of second- Hand is not falling at the same pace as in other municipalities and the rental price is more balanced. It stands out in this category Barcelona, that in 2016 was in the number 10 position among the most profitable municipalities and in 2017 occupies the position number 18.

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