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At Urbanitae Direct Investments, we continue to identify opportunities that combine entry at a discount, asset improvement and the generation of stable rental income.
Today, we are presenting a new investment opportunity in Castellón de la Plana, based on a clear and highly replicable strategy: buy below market value, optimise the property through a light refurbishment, and position it for rental.
An attractive entry point: 10% discount to market
The property, located on Pelayo Street, is being acquired for €135,000, with an approximate 10% discount compared to comparable homes.
This is a key point: entering below market price makes it possible to capture value from the outset, even before the refurbishment is carried out.
In addition, we are talking about a property with characteristics that make it highly liquid in the local market, which facilitates both its rental and a future sale.
A versatile asset: 4 bedrooms and 107 sqm
The property has:
- 107 sqm of surface area
- 4 bedrooms and 1 bathroom
- Second-floor exterior apartment (without a lift)
This layout allows for two clear strategies:
✔️ Traditional rental to families
✔️ Room-by-room rental to maximise income
Its functional layout and size make it especially adaptable to different demand profiles.
Light refurbishment to unlock value
The plan includes an estimated €12,000 refurbishment, focused on:
- Painting and finishes
- Carpentry and adjustments
- Improvement of installations
- General upgrade of the property
What matters here is that no structural changes or redistribution are required, which reduces both execution risk and timelines.
This is an intervention aimed at repositioning the asset within the rental market with a contained investment.
Stable rental income from the outset
The property has an estimated rent of €800 per month, which translates into:
👉 Approximate net rental yield of 5% under a traditional rental strategy
In addition, the local market shows sustained and diversified demand, driven by industrial and logistics activity, healthcare employment, students and families.
This mix of demand supports stable and recurring occupancy.
Medium-term appreciation potential
Beyond cash flow, the transaction also includes a clear value appreciation component.
Under a scenario of:
- Discounted acquisition
- Asset improvement
- Market evolution
The projected figures are:
- Estimated IRR of 16% with leverage
- Capital gain of more than €45,000 over 5 years
This approach combines recurring income with medium-term value creation.
A solid market with upside
Castellón offers an attractive backdrop for this type of investment:
- Prices that are still competitive compared to other provincial capitals
- Stable performance with slight appreciation
- Strong industrial base (ceramic cluster)
- Constant rental demand
In addition, there is a limited supply of refurbished housing, which benefits repositioned assets such as this one.
A clear strategy: buy, improve and monetise
This opportunity fits perfectly into one of the strongest strategies in residential investment:
- Buy at a discount
- Execute an efficient refurbishment
- Generate rental income
- Capture medium-term appreciation
All of this through a straightforward, understandable asset with good liquidity.
Why this opportunity?
Because it combines several elements that are hard to find together:
- Entry below market value
- Light, controlled refurbishment
- Cash flow from the outset
- Significant appreciation potential
- Versatile asset (families or room rentals)
Ultimately, this is an investment designed for those seeking a balance between stability, profitability and capital growth.
