by merkel on January 18, 2018
Barcelona, Madrid, Valencia, Zaragoza and Málaga currently live a boom of housing purchases that are acquired for their subsequent rental. Do you know the reason? The housing is now, the investment of the moment.
According to the Bank of Spain, the residential sector achieves an average return in two ways. The rent (4.4%) and its revaluation (3.9%). An asset that already offers an average annual gross return close to two digits. The high revaluation of the brick and the increase of the arrendo, causes that the investors buy already one of each three floors that are sold in big cities.
Barcelona is the city that leads this investment ranking. With 40% of homes sold with a profitable destination. Figures that indicate that only 60% of the homes that are purchased are acquired to live in them. Next to the city of Barcelona, Valencia occupies the second position of percentage of flats sold and then put them for rent with 37% profit. Madrid also occupies a very good place with 32% of investment in housing.
Cities such as Zaragoza (28%), Malaga (25%) and Seville (22%) also have a very good rate of return and profit. And, according to the Bank of Spain (BE), the profitability in the residential real estate sector is already up to 8.3%. A percentage that other alternative investments such as the 10-year bond or bank deposits barely give 1.2% and 0.3%, respectively.
“Neither the bank deposits, nor the Stock Exchange, nor the bonds. Currently the best investment is housing. “
Given the figures and the rising market for housing and residential investment, many professional investors such as individuals, have not missed the opportunity. They have seen in the residential heritage the best basket to put their funds and savings. So much so, that the crisis has collaborated with this rising trend. Leaving the price of real estate at a very low level and a much more affordable financing cost.
Therefore, we can say that housing is one of the best investments of the moment. It has fewer risks than stock markets and higher returns than traditional savings products.
