Spanish real estate market prospects 2019

Faced with the flattering prospects that the real estate market had until a little over two years ago, now no one doubts that in the short and medium term the houses will do nothing but revalue. In the worst case, and only in places with numerous unsold stock and low sales volume, there may still be price reductions, although there are fewer and fewer territories that respond to that profile.

The figures confirm that where there is more economic activity, the real estate market has already turned around a long time ago, so that transactions increase, prices rise and cranes return. In this context, the real estate portal Idealista has drawn up a study on the profitability offered by the rental of the main products of this sector (housing, offices, commercial premises and garages), compared with the Spanish public debt (at 1, 1% current). The figures are conclusive. In an environment of 10-year bond rates at minimum levels and with stock markets suffering from high volatility in the face of risks that come mainly from abroad, the brick once again becomes one of the most attractive investments.

The aforementioned report ensures that acquiring a property at this time (the study refers to the third quarter of this year) offers rates of return that, in the worst case, “multiply by four the 10-year bond.”

In particular, buying a home to rent afterwards provides a gross profit of 5.9% (this amount would have to be deducted from costs such as taxes or maintenance costs of the property), when just a year ago that profitability was located in the 3 , 6%, according to Idealist’s calculations. The Bank of Spain calculates that profitability, to which it adds the revaluation of real estate prices, at 8.3% in the second quarter of this year, when a quarter earlier it was even higher, at 10.9% per annum.

Housing is, therefore, the segment that most increases its profit expectations, since in the case of offices the average gross profitability goes from 6.8% in 2015 to 7.4% in September, and the acquisition of premises for subsequent leasing offers gross benefits of 8.4% this year, almost one point more than just twelve months ago (7.5%).

On the contrary, in the case of parking spaces, profitability has remained the same in the last year, with an average of 4.6%, the most modest of all the real estate products studied.

 

In the case of housing and taking into account that the analysis has been carried out in almost all provincial capitals, Lleida is the city that offers the greatest benefits, with 7.1%. They are followed by Las Palmas de Gran Canaria and Palma de Mallorca (both with 6.7%), Huelva (6.5%) and Alicante (6.3%). Among the big cities, Madrid and Barcelona stand out with identical profitability, 5.7% on average.

Commercial premises from Centric Barcelona apartments:

Locations with less population, where the demand for rent is therefore lower, present more modest gross benefits. This is the case of Ourense, with 3.7%, A Coruña, with 3.8% or San Sebastián, with 3.9%. However, all of them are substantially higher returns than those offered by the public debt. The purchase of commercial premises for subsequent leasing is, in most capitals, the product that offers investors better numbers.

Thus, the highest return is obtained in Alicante (with no less than 10%) and in Bilbao, with 9.4%. They are followed by Málaga and Valencia, with a not insignificant 8.7% and Barcelona, ​​with 8.6%. Madrid, on the other hand, offers a gross return of 7.6%.

In the field of offices and among the 10 most populated cities in the country, Zaragoza, with 6.9% and Seville and Las Palmas de Gran Canaria, with 6.4% in both cases, are the capitals that lead the ranking of profitability The demand for this product is mainly concentrated in Madrid and Barcelona, ​​where there are also large yields of 6% and 6.3%, respectively.

On the other hand, Valencia is the third city of Spain by population level, which is one of the territories that offers a lower gross profit in the rental of offices, of 5.1%. In spite of this, it remains a profitability that is much higher than that granted by the 10-year bond (of 1.1%).Source : bcn luxury apartments barcelona