The “buy to let” strategy is one of the most classic options among real estate investors. However, like in any other market, profitability varies depending on the location and type of property. A recent study conducted by Idealista, reflecting on 2023, reveals interesting data on the profitability of different real estate assets and provides a perfect overview of the opportunities offered by the sector.
According to this analysis, the office segment has overcome the clouds that accompanied the rise of telecommuting with new formats adapted to more flexible approaches, coworking spaces, or properties in privileged locations. In 2023, these assets once again emerged as the strongest in terms of gross profitability at 11.8%. However, they experienced a setback compared to the previous year when they recorded a performance of 12.9%.
Another type of property that has demonstrated its ability to adapt to new consumer formats or even reconvert its use is commercial premises. These provided a return on investment of 9.9% on average, just three-tenths below 2022.
Assisted by strong demand, garages and housing yield an average return of 7.2% and 7.1%, respectively. In the first case, there was an increase of one point compared to the previous year, while in the second case, that point was negative.
Most attractive capitals for investment
From general to specific, the reality is that the performance of different real estate assets varies greatly depending on where they are located:
- Offices: For those who want to invest in this type of property, Zaragoza and Seville, with a gross return of 11.7%, and Almeria (10.4%), are the cities with the best performance.
- Commercial premises: Ávila (12.3%) and Murcia (11.7%) top the ranking, followed by Lleida, Zaragoza, and Girona, with a return of 10.55% each.
- Garages: Murcia (10.8%), Ávila (8.3%), Castellón de la Plana, and Guadalajara (7.5%) are the most profitable cities to invest in.
- Housing: The highest returns are in Lleida (8.5%), Murcia (7.9%), and Huelva (7.3%).
Based on this data, Zaragoza and Murcia, cities that rank fourth and seventh in terms of population, offer great attractions for real estate investors. Murcia is positioned as a top-tier investment destination for commercial premises, garages, and housing; while offices have a 7.1% return. However, Zaragoza stands out in this segment; as well as in commercial spaces, with average returns in residential and garages, at 6.3% and 6% in each case.
And the two major capitals?
The returns of Madrid and Barcelona are slightly below the national average in all assets except for properties designated for offices, where their performance is below average by 4.5 points in the case of Madrid (7.3%) and 2.7 points in the case of Barcelona (9.1%).
Investing in real estate from 500 euros
Real estate investment no longer requires large capital, and the best assets are no longer exclusively accessible to a few. Since crowdfunding entered the real estate sector, any small saver can be a real estate investor from 500 euros and access these assets, both for rent and for sale, with the possibility of obtaining much higher returns. The Haus: a flexible office with a 29% IRR, a commercial space with a 15% return in the Doce de Octubre area (Madrid), or the residential project Pinares I in Cadiz, which reported a 23% return, are just a few examples. In Urbanitae, moreover, the process is very simple, entirely digital, and guided by professionals in the sector who bring maximum rigor and transparency to the projects.
