Canillejas Property: 19% Discount and Potential IRR Above 20%
Last Updated on 17 November 2025 by Equipo Urbanitae
We present a new opportunity for direct investment in residential property in Madrid: the Canillejas property, located at Calle Ribadumia 9. This is a home with a 19% discount compared to comparable properties, allowing entry into the market with a significant price advantage and high potential for appreciation from day one.
The estimated total investment starts from €294,932, with a purchase price of €230,000. As with all our second-hand operations, we offer an asset with potential for both a strategy of stable rental income and medium-term capital gains.
A Spacious and Bright Home
The Canillejas property is located on the third floor with an exterior view and elevator, with 74 m² of built area, and a layout particularly attractive for the rental market. It consists of three main bedrooms; an additional windowless room, ideal as an office, dressing room, or auxiliary bedroom; one bathroom; a living-dining room with exterior balcony; and an independent kitchen.
The double orientation and balcony provide excellent natural light, increasing its appeal for tenants looking for bright and functional homes.
The property requires only a cosmetic renovation, with no structural changes. This allows for reduced costs and timelines, adapting it to current market preferences and significantly increasing its value after renovation.
Immediate Rental Yield and Medium-Term Potential
The area shows extremely high rental demand and a very limited supply of homes of this type, ensuring quick and stable occupancy.
We project a net rental yield of 4.9%, well above the district average for renovated homes of this size.
Additionally, the purchase discount, combined with the post-renovation improvement, offers solid medium-term potential. In scenarios with leverage (individual investor), we estimate:
- Potential IRR above 20%
- Capital gain > €100,000 over a 5-year horizon
This clearly places the operation above the average profitability for similar assets in Madrid.
A Neighborhood with Rising Prices
Canillejas, with over 28,000 residents, is one of the most established neighborhoods in northeast Madrid and one of the areas with the highest price growth. In fact, it has an annual increase of 21% in resale prices and over 12% in rental rates.
This trend confirms that we are in a booming market, supported by its strategic location and high demand pressure.
Excellent Connectivity and Top-Level Business Network
The neighborhood is located within the San Blas-Canillejas district, with one of the best connections in eastern Madrid:
- Metro line 5 just minutes away
- Multiple bus lines
- Direct access to M-40, A-2, and M-14
- 10 minutes from Adolfo Suárez Madrid–Barajas Airport
It is also close to some of the capital’s main economic hubs, such as Ifema, the Julián Camarillo Business Corridor, the Las Mercedes business area, and office and logistics complexes near the A-2. These areas host tens of thousands of workers, many with payment capacity and active rental demand in well-connected yet more affordable neighborhoods than the city center.
Canillejas combines local commerce, green areas, sports facilities, and a balanced residential environment that attracts both families and young professionals. This stability directly results in lower tenant turnover, a key factor for profitability.
Why Invest in the Canillejas Property?
Here are the main reasons in our opinion:
- 19% discount compared to comparable properties
- Net rental yield of 4.9%
- Potential IRR > 20% in leveraged scenarios
- Spacious and versatile home, ideal for families or remote work
- Market with 21% annual growth in resale prices
- High demand and low supply → immediate rental
- Strategic location near Ifema, A-2, and Metro line 5
- Light and quick renovation
- Neighborhood with full services and established quality of life
The Canillejas property is an opportunity to invest in an asset with real discount, high rental liquidity, and outstanding appreciation potential.
