It is becoming more and more profitable to acquire a home in a coastal area to put it up for rent. On average, profitability in Spain stood at 6.7% in the middle of the year, with Gandía (Valencia) as the municipality on the coast where the highest yield can be obtained from these properties, with an average of 7.9 % in June, 1.9 points more than five years ago.
The data correspond to the analysis ‘Profitability in coastal municipalities in the summer of 2021’ by Fotocasa, based on the supply data of the price of housing for sale and for rent from the real estate portal.
According to these, after Gandía the Cádiz municipality of Algeciras is located with 7.4% (compared to 6.6% in 2016), the Almeria of Roquetas de Mar with 7.2% (5.3% five years ago), The Cantabrian city of Castro-Urdiales with 7% (without previous data), the Murcian city of Cartagena with 6.7% (in 2016, it was 5.5%) and the capital of Almería with 6.7% (compared to 5 % from five years ago). They are the six coastal municipalities that generate a return equal to or higher than the average for Spain.
Of the six most profitable cities in June 2021, in one of them the profitability history dates back 10 years. It is Gandía, which has a solid record of profitability after increasing from 4.4% in June 2011 to 7.9% in June 2021 . Algeciras is placed in second position, going from 4.7% in 2011 to 7.4% today.
Below the average, with profitability below 5% and falling compared to 2016, are San Sebastián with 3.5% (compared to 3.8% five years ago), Fuengirola with 4.1% (before , 5.7%), Barcelona capital with 4.2% (5.2% in 2016), Estepona with 4.2% (without previous data), Palma de Mallorca with 4.3% (compared to 6.3% 2016), Sitges with 4.5%, Marbella with 4.7% (1.3 points less than five years ago), Benalmádena with 4.8% (with 5.1% in 2016) and Benidorm with 4.9 % (at 5.2% five years ago).
“There is no other financial product with such a high profitability than housing”
According to María Matos, Director of Studies and Spokesperson for Fotocasa, “for another year it has been found that housing has no rival as an investment. In fact, at the moment there is no other financial product with such high profitability. For this reason, Spain is situated as one of the investors’ favorite markets. “
Matos has highlighted that “after the impact of the pandemic we are detecting a very active demand interested in buying to rent , and of course, the profitability data is a great incentive, both for large investors and for small individuals who enter the market “.
Regarding the specific case of coastal municipalities, Matos points out that “each year we see how they are being included more in the performance ranking.”