roperty Shorts
Canaries Get More Return
on Buy-to-Rent Properties
Buying
property for the
purpose of renting it out is
now more profitable than before
the crisis, according to the
results of a study carried out by
property portal, fotocasa.es,
based on the latest report of
house prices for sale and for
rent last October. The data
shows that buy-to-rent property
in Spain can achieve annual
revenues of 5% on average, (in
2013 this figure was 4.8%), and
that it would take an average of
20 years to recover the
investment. Since 2007, when
Building is back
Spain
has become one of the main engines of
construction activity in Europe, according to
Eurostat. Construction (residential and civil engineering)
was the sector that increased most in September, at
European level, registering growth of +9.1% year-onyear. This percentage is less, however, than the +22%
increase recorded in August.
Following Spain, the EU member states which
posted the greatest annual increases were the Czech
Republic (+8.2%), Hungary (+7.3%), Slovenia (+6.2%)
and Bulgaria (+5.8%).
The figures reflect a cautious feeling of confidence
in the Spanish construction sector, which was
devastated by the 2007 crisis. However, critics will
also be wary of a return to the feverish “bricks and
mortar” economy that made that crisis so much
harder on millions of Spaniards.
86
| January 2015 | The Gazette
the average price of
housing for sale
reached its all-time high,
this income potential
has increased by 1%.
The Canary Islands,
Catalonia and Madrid
are the regions where it
is most profitable to buy
a house to rent it out,
and where it takes the
least number of years to
pay off the investment.
In the Canary Islands
the annual revenue
potential is 5.5%
(compared to 5.1% in
2013), while the regions
of Catalonia and Madrid
both offer a yield of
5.1%. The Canary
Islands remain in the first
position with respect to 2013.
Beatriz Toribio of fotocasa.es
explained: “Profitability is
increasing because the prices
of housing for sale are falling at
a greater rate than those of
rental housing, an option that is
becoming more-and-more
interesting for many Spaniards
due to the economic climate.”