Idealista.com: CRE Is Twice As Profitable As Debt

16/07/2014 – Cinco Dias

Shops remain as the number one in the investment return ranking, according to portal Idealista.com. The latest Q1 2014 report by the website which compares rental and sale prices, states that buy-to-lease for a commercial unit offers a gross margin of 6.2%. Offices a little bit less, 6.1%, whereas houses and garages return 4.9% and 3.6% respectively. To contrast, 10-year, State bonds give back only 2.7%.

In fact, the commercial real estate is the most profitable asset in great majority of the main Spanish cities. The highest returns enjoy the owners of stores in Cordoba (11.2%) and Malaga (11.8%), followed by Pamplona (7.9%), Alicante and Ciudad Real (7.6% in both of them). Barcelona offers a 7.5%, while Madrid a 7.2% return on investment. On the other side, the shops in Salamanca (4.8% return), Jaen (5.2%) and Castellón de la Plana (5.3%) turn out to be the least money-making.

ROI: Dwellings

Speaking of the return on investment in case of houses leased in various Spanish capitals, it is the best in Lleida (6.4%), followed by Las Palmas de Gran Canaria (5.7%), Huesca (5.3%), Huelva (5.1%) and Alicante (4.9%). Madrid and Barcelona profitability does not vary very much with 4.3% and 4.1% respectively.

However, the lowest return in Spain bring the rented homes in Ourense (3.2%), A Coruña and San Sebastian (both 3.3%), as well as in Lugo (3.6%).

ROI: Offices

The most renumerative offices are located in Vitoria (8.8%) but also A Coruña (6.7%), Palma de Mallorca and Santa Cruz de Tenerife (both 6.6%) have no reason to be ashamed. In Barcelona the return reaches 5.8%, similarly in Madrid (5.7%). On the other end of the ranking we find Santander (4.7%), San Sebastian (5%) and Oviedo (5.2%). Office market is not as homogenous as other products, therefore it was impossible to obtain statistical data from more than a half of main Spanish cities.

ROI: Garages

Garages prove to be the least juicy assets in most of the capitals. Still, the return is higher than the one offered by the State-issued 10-year bonds (2.7%). Thus, Almeria opens the list with 5.8%, while all Pamplona, Santa Cruz de Tenerife and Tarragona equally rank the second with 5.5%. The least bankable are garages in Granada and Vitoria (both 2.6%), followed by Santander (2.7%), San Sebastian and Salamanca (both 2.8%). In Madrid, they return 2.9%, while Barcelona the profit rises to 4%.

Original article: Cinco Días

Translation: AURA REE

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