The real estate market remains one of the top choices for those seeking profitability. Household income in Spain is reaching historic highs, and a significant portion comes from the returns on these types of assets. This is confirmed by data from the Spanish Tax Agency, as reported by El País. Specifically, rental income from housing reached €31.5 billion in 2024, a 6.5% increase over the previous year and the highest figure since records began.
Without a doubt, real estate investment is deeply rooted in Spain. Several factors contribute to its appeal, including the complexity of other financial products, demand that significantly exceeds supply, and a general aversion to risk.
Diversification: the key to investing in 2025
The latest report from property portal Idealista, covering the first quarter of 2025, once again shows that the gross yield from rental properties far exceeds that of traditional assets, such as 10-year government bonds (3.3%).
When planning an investment strategy, experts agree that diversification is often the best approach. So what’s the current state of the market? According to Idealista’s analysis of gross real estate investment returns, offices top the ranking with an 11.5% gross yield, followed by commercial premises (10%), residential housing (7.3%), and garages at the bottom with 6%.
Offices have established themselves as the most profitable real estate asset, despite a slight adjustment compared to the previous year. Commercial premises also present an excellent opportunity, especially in dynamic cities. Housing offers stability, while garages—though slightly less attractive—remain an interesting option in certain markets.
Housing: stability and opportunity in secondary cities
Housing investment remains one of the safest bets, particularly in cities where the price-to-rent ratio is more favorable. Murcia tops the profitability ranking with 8.2%, followed by Lleida (7.7%), Jaén (7.5%), Huelva (7.5%), and Zamora (7.3%).
At the other end, San Sebastián (3.5%) and Palma (4.5%) show the lowest returns, reflecting purchase prices that have risen faster than rental income in these areas.
In major cities like Madrid (4.8%) and Barcelona (5.9%), returns are moderate, but they have well-established rental markets and high liquidity—important factors for more conservative investors.
Commercial Premises: High Returns and Room for Growth
According to data from Idealista, commercial premises are the standout asset in most Spanish provincial capitals. Murcia (12.5%) and Zaragoza (11.7%) offer the highest returns, followed by Lleida (11.1%), Santa Cruz de Tenerife (10.6%), and Girona (10.4%).
Even in traditionally expensive markets like Barcelona (8.4%) and Madrid (7.7%), commercial premises outperform other real estate types, confirming their appeal.
Offices: the most profitable surprise
Although long overlooked, offices have made a strong comeback. The average yield now sits at 11.5%, reaching 13.3% in Seville—the highest among all asset types analyzed.
Other promising office markets include Vitoria (9.8%), Zaragoza (9.5%), and Valladolid (9%). However, reliable data is not available for all cities due to a lack of transactions in some locations.
In Madrid and Barcelona, yields are around 7.6% and 7.7% respectively, which remains competitive given the strong demand for flexible spaces and coworking environments.
Garages: Low-Risk Asset with Moderate Returns
Traditionally seen as a safe, low-maintenance investment, garages currently offer an average return of 6%.
Murcia once again stands out, with a 10.1% yield, followed by Ávila (9%) and Castellón de la Plana (8%). However, in cities like Madrid (5.4%) and Barcelona (6.5%), returns are more limited.
In cities such as Salamanca (2.6%), yields are so low that they barely compete with fixed-income products, making careful evaluation of each investment essential.
