The most profitable cities for real estate investment: from Lleida to Murcia.

Investing savings in real estate is a popular choice for many investors, as brick is considered a reliable asset compared to other investments. Acquiring real estate requires significant financial outlay, so many potential investors strive to maximize their profit from the deal. However, aside from the type of property, a key factor in achieving high returns is the location of the real estate asset. Profitability varies significantly depending on its location. The most profitable investment option is considered to be the purchase of office spaces for subsequent rental.

According to data from a study conducted by the real estate portal Idealista

The payback period for purchasing residential property for rental has slightly decreased: in 2022 it was 7.2%, and last year it dropped to 7.1%. However, for those interested in acquiring real estate for rental purposes, it is worth considering the purchase of office space, as this is currently the most profitable investment, with a yield of 11.8%. Meanwhile, this has also decreased compared to a year ago, when it was around 13%.

Another type of real estate that potential investors should pay attention to

These are commercial premises whose profitability has increased over the year from 9.6% to 9.9%.

It is also worth mentioning parking lots, which have a profitability of 7.2%, slightly exceeding the 7.1% recorded a year ago.

Lleida

It holds a superior position among cities where purchasing property for subsequent rental provides the highest return, reaching 8.5%, which exceeds the average rate in Spain. Following it are Murcia with a profit rate of nearly 8%, Huelva at 7.3%, and Jaén and Segovia at 7.2%, along with Castellón de la Plana and Valencia at 7%.

As for the garages

It is worth noting that the opposite situation is observed in some capitals. For example, in Salamanca, the profitability is 2.4%, while in Granada it is 3%, which is significantly lower than the average value of 7.2%. Ávila, Murcia, Lleida, Zaragoza, and Girona are cities where renting commercial premises is the most profitable.

Regarding office spaces

Cities like Zaragoza or Seville offer high profitability with a gross yield of 11.7%. Those who decide to purchase office space in Almeria, Burgos, or Vitoria will see quite significant profits of 10.4%, 9.1%, and 8.9% respectively. Major capitals also provide high returns for those who choose to invest in office space. Barcelona ranks first with a yield of 7.9%, while in Madrid it stands at 7.3%.