Investors now get better gross rental yields in Barcelona and Madrid than in London or Paris. Assessing house prices and the amount that could be eared renting our property, the findings by a Spanish property portal concluded that gross residential rental yields in Barcelona (4.1 cent) and Madrid (4 per cent) are now better than London (3.4 per cent) and Paris (3 per cent).
Falling house prices and the glut of people who cannot afford to do anything other than rent means that investors are winning at both ends of the Spanish property market. Not only are they able to pick up bargain real estate, but are then able to set a high amount of rent, increasing their income.
Investors get the best Spanish rental yields from Lleida (5.9 per cent), one of Catalonia’s provincial capitals, followed by Las Palmas de Gran Canaria (4.7 per cent) and Alicante (4.4 per cent).
Northern Spanish cities like San Sebastian and La Coruna linger at the bottom of the list, with yields of just 3 per cent.