Elche on top of the rental tree
ELCHE and Valencia are the two most profitable locations in Spain for homeowners, according to a study by an online property renting platform
The analysis of the market has shown that Elche is the most profitable city in Spain for homeowners who rent out their properties.
The study by online platform Fotocasa analysed the cost to purchase properties and the rental prices for the 20 most populated towns and cities in the country.
Their results have Elche as the top location, with a 5.78% return for investors – followed by the city of Valencia at 5.75% and Córdoba at 5.6%. Not far behind is the city
Alicante (5.3%), and of further down the list are Madrid (4.8%) and Barcelona (4.3%).
The reasons for the high returns in the two Valencia region locations are said to be the sustained increase in rental prices coupled with the relative low purchasing cost.
This means that the annual rent that a homeowner can make for a comparatively cheap property is greater than anywhere else in the country.
The difference with larger cities such as Madrid and Barcelona, where rental prices are sky high, is that the cost of the properties themselves has also grown significantly in recent years.
Figures show that rental prices have increased by 9.2% in the city of Valencia in just one year, with a 100 m2 apartment now costing an average €880 a month.
A spokesperson for Valencia’s school of property agents (API) explains that ‘large and small investors from Madrid and Barcelona have realised the opportunity that Valencia represents,’ as many of them have been seeking to purchase properties and take advantage of this increased profitability.