¡New property! Home in Vallecas with a 10% IRR return (TIR)
Last Updated on 20 February 2026 by Equipo Urbanitae
We’re presenting a new investment opportunity in a district of Madrid—specifically in Vallecas, at Travesía Puerto de las Pilas 7. It’s a second-hand home with a clear proposal: discounted entry price, a light “refresh” renovation, and rental income generation in one of the most dynamic areas of Madrid’s market.
The property has a purchase price of €185,000, which represents a 10% discount compared to the average market price in the area. The estimated total investment starts at €237,970, including acquisition and property upgrades.
In addition to recurring rental returns, the projected five-year scenario includes an estimated capital gain of more than €84,000 and an IRR (TIR) of 10.5%, supported by the evolution of the residential market.
Three bedrooms and a light renovation
The home is exterior-facing and located on a second floor with no elevator. It includes:
- 68 m² built area
- 3 bedrooms
- 1 bathroom
- Living-dining room with a balcony
- Separate kitchen
This is a particularly liquid, easy-to-rent typology in Vallecas: three bedrooms, functional layout, and good ventilation. It’s a format in high demand both for families and for tenants who want to share a home with a good connection to the city center.
The property requires a refresh/modernization renovation, which makes it possible to increase its value and adapt it to today’s market standards without taking on complex structural works. This is key: buying at a discount and optimizing the asset through improvements is one of the most solid ways to create value in residential real estate.
Profitability and market context
The estimated net yield for a traditional rental is 5.9%, with a projected rent of €1,280 per month—highly competitive in Madrid’s market, especially in established locations.
The residential market in the capital shows very positive momentum:
- +13% year-on-year in purchase prices
- +9% in the rental market
In districts like Vallecas, the combination of limited supply and high demand supports recurring income and reduces vacancy periods.
Vallecas, a rising location in Madrid
One of the biggest attractions of this property is its location. Vallecas has consolidated as a very competitive alternative for people who work or study in central areas but want more affordable prices.
The home has essential services—public transport, supermarkets, hospital, schools, etc.—within a short distance.
It also offers quick connections to the center via Metro and buses, as well as direct access to key roads like the M-30, A-3, and M-40. Its proximity to economic activity hubs such as Méndez Álvaro, Conde de Casal, and the Atocha area reinforces steady rental demand from young professionals, workers, and families.
A long-term investment opportunity
Overall, the Puerto de las Pilas Property brings together several differentiating factors:
- Discounted entry price versus the market
- Value creation potential through renovation
- Estimated 5.9% yield in a traditional rental
- Mid-term appreciation potential
- Location with strong, structural demand
Vallecas is consolidating as a solid, growing residential market, where the combination of accessibility, services, and economic dynamism creates a favorable environment for real estate investment with a medium- to long-term view.
If you’re looking for a property capable of generating stable rental income and potential revaluation in Madrid, this could be an excellent opportunity to add to your wealth-building strategy.
