Retiro Property: Prime Asset in Madrid with a 10% Discount
Last Updated on 7 November 2025 by Equipo Urbanitae
Urbanitae presents a new direct investment opportunity in the heart of Madrid, aimed at investors seeking to combine security, profitability, and potential for appreciation. This is a residential property located at Avenida Ciudad de Barcelona, 37, in the Pacífico neighborhood (Retiro district), one of the most established and well-connected areas of the capital.
With a purchase price of €500,000 and a total estimated investment starting from €578,850, this property is offered at a 10% discount on market value per square meter, with an expected net yield of 4.6%, well above the area average. Additionally, the asset is available for immediate investment, allowing you to generate passive income from day one.
An Exclusive Asset Optimized for Profitability
The property, located on a second interior floor with elevator access, has 88 m² of built area, six rooms, two bathrooms, and is accessible for people with reduced mobility. The apartment has been recently renovated, with a layout optimized to maximize rental profitability and ensure consistent occupancy.
Currently, it features five bedrooms and an additional storage room, expanding possibilities for rental to families, professionals, or shared housing. Only minor updates—appliances, painting, and interior carpentry—are required, allowing investors to enter the market with a turnkey asset without uncertainty regarding renovation time or costs.
Competitive Entry Price and Exit Advantage
The property stands out due to its unique price positioning: currently, there is no comparable renovated property in the area at this price level. The closest comparable asset is €130,000 higher, reinforcing the margin of safety and potential for immediate appreciation.
This competitive advantage offers investors a strategic entry into the Madrid market, both for those seeking recurring rental income and for those pursuing a medium-term appreciation and exit strategy.
Two Strategies: Rental or Sale
1. Recurring income strategy: keep the asset in the portfolio to generate stable passive income through traditional rental, with an estimated net yield of 4.6%. Based on the average yield in the area, the recommended rent for a property of these characteristics is around €2,500 per month, ensuring quick and sustained occupancy.
2. Appreciation and exit strategy: rent out the property during the first few years and sell later, taking advantage of appreciation from the purchase discount and renovations. In investment scenarios with leverage and a five-year sale, an IRR above 18% and a capital gain of approximately €155,000 is estimated, well above the district average.
Prices Increasing 27% Annually
The real estate market in the area shows a clearly upward trend. Over the last year, the housing price has increased by 27%, driven by limited available supply and strong demand for renovated properties. Rents have also risen by around 10%, consolidating Retiro as one of the best-performing districts in the capital.
The area attracts a medium-high income resident profile, including families, professionals, and postgraduate students, which reinforces the stability of the rental market. Its combination of central location, amenities, and quality of life ensures consistent structural demand and sustainable appreciation potential.
Balance Between Profitability and Security
With an expected yield of 4.6%, a 10% market discount, potential IRR above 18% in exit scenarios, and immediate availability, the Retiro property is positioned as one of the best current residential investment opportunities in Madrid.
A direct, secure investment with income from day one, in one of the most stable and in-demand areas of the Madrid real estate market.
