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We present a distinctive opportunity within Direct Investments: the joint acquisition of five residential apartments in the Usera district (Madrid), all recently renovated, fully furnished, and currently rented.
This investment is structured as a diversified portfolio executed as a single transaction, with each asset already segregated and registered as an independent cadastral/land-registry unit. This provides:
- Legal certainty
- Management flexibility
- The option to divest individual units
- Reduced concentration risk
A structure that’s unusual for deals of this size, combining scale with true diversification.
Immediate profitability and strategic upside
All five apartments are rented at market rates, with an active rent guarantee and the option for tenants to terminate without penalty. This enables income from day one, with no need for additional renovations or extra investment.
From a financial standpoint:
- Estimated net yield: 4.8% (traditional long-term rental)
- Estimated IRR: 13.5% with leverage and sale in 5 years
- Estimated capital gain above €239,721
The strategy combines acquisition, leasing, and an eventual sale to maximize IRR. Even without divestment, this is a solid, income-producing asset base generating consistent monthly rent in one of the most dynamic residential areas in southern Madrid.
Note: the financial model uses a standard Spanish financing scenario for an individual buyer (70% LTV, 30 years, 2% interest) purely as a reference to assess IRR impact. Actual terms may vary depending on each investor’s profile and situation.
In addition, the portfolio includes an extra strategic component: the option to apply for a tourist-use license, which could optimize income and provide greater operational flexibility.
Usera: a district in a clear expansion phase
The district of Usera, located in southern Madrid, has approximately 150,000 residents and has become one of the city’s most dynamic and densely populated areas.
In recent years, it has undergone progressive urban transformation that is improving its natural integration with the city center, consolidating Usera as an increasingly connected and attractive extension of Madrid.
Real estate market evolution
From a market perspective, Usera is in a clearly expansionary phase. Over the last five years, sale prices have risen steadily: moderate growth in 2022 and 2023, followed by a strong acceleration in 2024 and especially in 2025 (+19.5%), culminating in 2026 with a further surge of +21.2%. This shift confirms the district’s consolidation within Madrid’s upcycle, narrowing the historic gap versus more central areas.
The rental market is even more intense. After entering a clear upward trend in 2023 (+7.7%) and 2024 (+8.3%), rents jumped sharply in 2025 (+21.5%) and continued growing in 2026 (+11.9%). This performance reflects structurally strong demand driven by high population density, proximity to central Madrid, and limited available supply. The combination of price appreciation and rental pressure reinforces Usera’s positioning as one of the highest-potential areas in southern Madrid for medium-term residential investment strategies.
Connectivity, services, and urban transformation
Housing in Usera benefits from a strategic location close to services, retail areas, hospitals, parks, and cultural offerings, and is very well connected to the city center via:
- Metro (Lines 6 and 3)
- Cercanías (C5)
- Direct access to the M-30 and A-42
Additionally, Madrid City Council is developing a new pedestrian route connecting Plaza de las Tizas with Madrid Río, scheduled for completion in 2026. This corridor will strengthen the district’s integration with one of the city’s main green axes, contributing to local revitalization and supporting residential and commercial value growth.
Why invest in this portfolio?
The Isabelita Usera opportunity has multiple strengths:
- Five independent assets already renovated and rented
- Immediate 4.8% yield
- 13.5% potential IRR with leverage
- Possible optimization via a tourist-use license
- Area with sale-price growth above 20%
- Tight rental market with limited supply
Overall, this is a transaction designed for investors seeking profitability from day one, real diversification, stable cash flow, and long-term wealth growth potential, in one of the southern Madrid districts with the strongest runway.
