From Lleida to Murcia: lucrative cities for residential investment.

People who have an accumulated amount of money may decide to invest it in real estate. For many investors, brick is seen as a safe haven from the volatility of other assets.

Given the significant costs associated with purchasing real estate, many potential investors are looking for a high return on the transaction. In addition to the type of property, another key factor to consider in order to generate the highest possible return is the location of the property. Returns vary significantly depending on the location of the property.

Buying offices to rent is the most profitable investment. The net return on buying a residential property to rent out has fallen slightly in 2023. While it was 7.2% in 2022, it fell to 7.1% last year, according to data collected in a report compiled by real estate portal Idealista.

Those interested in buying a property to rent should consider buying an office as it is currently the most profitable real estate investment at 11.8%, although this has also fallen to almost 13% compared to a year ago. The return for those who buy an office and rent it out is 11.8%.

Other real estate assets that potential investors should pay attention to include rooms, which increased their yield from 9.6% to 9.9% over the course of the year. Also not to be forgotten are garages, with a yield of 7.2%, slightly higher than the 7.1% recorded a year ago.

Lerja becomes the city where the purchase of housing for rent brings the highest return of 8.5%, which is higher than the Spanish average.

Lerjda is the city where renting out purchased housing is the most profitable. Photo: Freepik.

Then comes Huelva, where the yield for people buying a house or apartment to rent is 7.3%, as well as Jaén, with a yield of 7.2%; Segovia, 7.1% and Castellón de la Plana and Valencia, 7%.

In the case of garages, it is important to take into account that yields are significantly lower in some capital cities. For example, in Salamanca it is 2.4% and in Granada it is 3%, which is significantly lower than the average of 7.2%.

Avila, Murcia, Lerja, Zaragoza and Girona are the cities where renting commercial space is the most profitable. Avila is an example of this, with the highest yield, 12.3%. Also worth noting are the yields that can be obtained in Murcia, 11.7%, and in Lerda, Zaragoza and Girona, 10.5%.

When it comes to offices, the highest yields are offered by Zaragoza and Seville, with a net yield of 11.7%. Those who decide to purchase an office in Almeria, Burgos or Vitoria will receive a fairly high yield of 10.4%, 9.1% and 8.9%, respectively. Net yields for those who decide to invest in the purchase of an office in the major capital cities will also yield high returns. The highest of these is offered in Barcelona at 7.9% and in Madrid it is 7.3%.