Housing continues to be one of the safe haven values and even more so in times of uncertainty. Thus, buying a house and then renting it is one of the formulas used by some investors to get the most out of their savings. Four Iberian cities are in the top 10 of the most profitable European cities to buy a rental home. These are Valencia, Madrid, Barcelona and Porto, whose yields are higher than those of London or Paris, according to a study by Masteos.es, a platform specialized in rental investments.
Renting a home in the city of Valencia offers a return of 5.9%, only behind Warsaw (6%), as shown by the figures analyzed by the proptech. The average purchase price in Valencia stands at 1,838 euros/sqm, while the average rental price is 9.1 euros/sqm. Thanks to the calculations of this platform, it can be concluded that the profitability of Valencia exceeds 65% when compared, for example, with London and is 74% higher than that of Paris.
Madrid and Barcelona occupy the 5th and 7th places on the list
Madrid and Barcelona are placed in fifth and seventh place, respectively. In the case of the capital, the purchase price stands at 3,683 euros/sqm and the rental price at 14.8 euros/sqm, which leaves a return to the owner of 4.8%.
For its part, the yield for buying a home and renting in Barcelona is 4.6%. They are followed by Porto and Brussels with yields of 4.2%. In addition, Spanish cities are well above other European capitals such as London, Berlin, Paris or Lisbon, where the purchase of housing to rent implies average returns that range between 3.8% and 3%. Closing the list is Munich with a return of 2.8%.
In fact, the study, which covers the main cities of eight European countries: Germany, Spain, Belgium, France, Italy, Poland, Portugal and the United Kingdom, shows that buying a home to rent in Madrid is 50% more profitable than in Lisbon and 44% more than Paris, while in Barcelona buying a house to later put it up for rent offers an income 31% higher than that of Berlin and 28% more profitable than in London.