Interest in real estate investment remains very high among Spaniards, even at a time when the financial market offers a wide range of investment products. This attachment to property is not coincidental; traditionally, property in Spain has been seen not only as a way to protect savings but also as a key tool for generating long-term wealth.
For many families, acquiring a home remains a central goal, but it is not the only option. Those who wish to diversify and maximize their income through real estate can explore other assets, such as garages, commercial spaces, and offices, among others. However, their profitability varies considerably depending on type and location.
The latest data published by Idealista on the returns offered by these four real estate assets can be a useful reference when deciding where to invest. The decision will depend on many factors; profitability and location are important, but so is our investor profile.
Garages: Simple management and steady income
Less daring investors seeking few complications and a steady income source—though not the most attractive—find garages to be the ideal asset. Although Idealista labels them as “the least profitable product in many capitals,” cities like Ávila (8.7%), Murcia (8.7%), and Castellón (8%) offer returns above the national average of 6%. In capitals like Salamanca, Granada, or Palencia, profitability remains around 3%.
Housing: Long-term vision
For investors with economic stability and/or access to financing, and a focus on long-term returns, rental housing is a good alternative. With an average return of 7.2%, Idealista’s data shows small cities like Murcia (8.1%), followed by Lleida (7.6%) and Huelva (7.4%), at the top of the profitability ranking. In major cities like Barcelona or Madrid, the rate drops to 5.9% and 5.2%, respectively.
Commercial spaces: Diversify while taking risks
Diversifying the portfolio without fearing risks associated with tenant turnover and retail market fluctuations. This is the approach taken by investors who choose commercial spaces to place their savings and obtain returns. In this case, the return increases to 9.7%, according to Idealista, and exceeds 10% in many cities. Examples include Murcia (11.7%), Girona (11.3%), and Oviedo, Ávila, and Zaragoza (10.9% each).
Offices: Institutional and experienced investors
At the top of profitability are offices (11.7%), an asset favored by institutional investors or those with experience in this field, as they require more complex management and are subject to economic cycles.
Sevilla (14.2%), Vitoria (10.2%), and Almería (9.6%) top Idealista’s list of the most profitable locations. Some of the most dynamic economic environments, such as Barcelona (8%) and Madrid (7.4%), fall below the average.
Keys to the future
Beyond interest rate trends, changes in consumption patterns, sustainability, and mobility are factors that will influence the future profitability of real estate assets. These will continue to offer opportunities, but the most attractive returns will be obtained by those who best adapt to these transformations.
Demand for garage spaces will remain stable in densely populated urban areas with parking difficulties, especially in cities like Madrid, Barcelona, or Málaga. However, the expansion of low-emission zones and traffic restrictions in city centers may reduce demand in these areas, redirecting it to peripheral zones.
The lack of new housing and difficulties in purchasing access will continue to fuel rental demand, especially in large cities and metropolitan areas. Regulation and price caps will also play a role in shaping the market.
The office market continues its reordering, with reduced remote work and a return to in-person and hybrid models, prompting many companies to reconsider their space needs. Coworking and flexible office models are also on the rise, the latter being a key factor along with energy efficiency.
Retail remains resilient after facing the effects of e-commerce and the pandemic. Hybrid models (e-commerce and physical stores) will be a trend, influencing demand for commercial spaces with features that allow for experiences beyond mere transactions.
