Invest in Vallecas Property: 23% Discount and 6.4% Estimated Yield
Last Updated on 16 January 2026 by Equipo Urbanitae
We’re presenting a new residential investment opportunity in Vallecas (Madrid): a home located at C/ Puerto de Alazores, 9, positioned very competitively thanks to its 23% discount versus comparable properties and a very clear value-creation approach: buy with an advantage, renovate, and operate as a rental (with an option to exit mid-term).
The deal starts from a purchase price of €175,000 and an estimated total investment of €222,823, with an estimated rent of €1,290/month and an estimated net yield of 6.4%. In a 5-year sale scenario with leverage and as an individual investor, an IRR above 28% is estimated, along with a capital gain of more than €110,000, supported by the entry discount, the post-renovation uplift, and market evolution.
An Exterior 3-Bedroom Apartment Built for Real Rental Demand
The property has 61 m² built area, is exterior, and is located on a third floor with no elevator. The layout is functional and highly “rentable”: three bedrooms, a living–dining room, a separate kitchen, and one bathroom.
This unit type fits especially well with young professionals, workers, and families who prioritize connections to the city center, full local services, and more accessible pricing within the Madrid market.
Refresh Renovation Without Structural Changes
The home needs a refresh renovation, but without structural work—helping keep costs contained and timelines shorter—while adapting the unit to today’s standards that tenants value most (finishes, efficiency, and ease of maintenance). The included budget is built on a conservative scenario, adding an extra margin of safety to the operation.
Two Investment Strategies: Recurring Income or Income Plus Exit
This opportunity supports two clear strategies, depending on the investor’s objective:
- Strategy 1: hold the asset as a long-term rental.
With an estimated rent of 1,290 €/month, the investment targets an estimated net yield of 6.4%, supported by sustained local demand and limited supply of renovated, move-in-ready rental stock. - Strategy 2: renovate, rent, and sell mid-term (5 years).
Once the renovation is completed and after a rental operation period, there’s the option to exit over a five-year horizon, capturing the value created by the entry discount, the property upgrade, and market evolution. In a leveraged scenario, an IRR above 28% is estimated.
Vallecas: A Dynamic, Well-Connected Market
The district’s residential market shows positive momentum, with +13% year-on-year growth in sale prices and +9% in the rental market, according to the project’s analysis.
Practically speaking, Vallecas stands out for its proximity to the center and strong transport connections: access via Metro lines and bus networks, plus direct links to key routes such as the M-30, A-3, and M-40. The district also benefits from proximity to employment hubs like Méndez Álvaro, Conde de Casal, the Atocha area, and the southeastern business/industrial zones.
Why Invest in the Vallecas Property?
These are the strongest points for investing in the Vallecas property:
- 23% discount versus comparables.
- Estimated net yield of 6.4% with a traditional rental.
Estimated IRR +28% in a 5-year sale scenario with leverage (individual investor). - Exterior unit, 3 bedrooms, and a highly demanded layout.
- Refresh renovation with no structural changes, using a conservative approach.
- Market with +13% year-on-year in sales and +9% in rentals (per the analysis).
- Location with strong connectivity and proximity to employment hubs.
Overall, the Vallecas property is an investment designed to enter with an advantage, create value through renovation, and capture a very attractive blend of rental income and potential capital appreciation in an established urban environment.
