The first quarter report by website Idealista into buy-to-let for homes indicates that profit has fallen to 7.2%. In the first quarter of 2020, it was 7.6%.
The study takes sale and rental prices of different types of property in calculating gross profit. In this regard, offices are the most profitable investment. There was a gross return of 11.1% in the first quarter. This compared with 9.6% in 2020. "Locales", e.g. shops, had a yield of 9.3%, which was up from nine per cent, while garages were at 7.2%, an increase from 6.6%.
Idealista looks at prices in provincial capitals in Spain and finds that Lleida is the most profitable (8.4%) for renting out homes. Then come Murcia (7.9%), Huelva (7.2%), and Castellón de la Plana and Santa Cruz de Tenerife, both seven per cent. The lowest returns are in San Sebastian (3.6%). Barcelona is 4.4%, and just higher are A Coruña and Palma, both 4.5%.
For "locales", the highest return is in Avila (11.5%). For offices, Seville has a 12.4% gross profit. Idealista notes that the office market is not as uniform as for other types of property, so it isn't possible to obtain statistical data for around half of the provincial capitals. Where garages are concerned, Avila again comes top with 9.8%.