Fotocasa: Residential Rental Yields Fell to 5.4% in January

26 January 2019 – El Economista

Residential yields in Spain fell by 7% in January 2019 with respect to the same month a year earlier to reach 5.4%, according to a report from Fotocasa.

The data obtained from the prices of house sales and rentals during the month of January show that acquiring a property to put it up for rent was “a bit more profitable” in 2018 than in 2019, according to Fotocasa.

The Head of Research at the real estate portal, Beatriz Toribio, explained that “this slight decrease in yields stands out because it is the first recorded in the month of January for the last 10 years. It is explained by the lower rate of growth in rental prices that we have seen since the end of 2018%”.

The report shows that Cataluña was the most profitable autonomous region, with a yield of 5.8%, compared to 6.7% in January 2018, which represents a decrease of 13% in that region.

In second place, the Community of Valencia had an average yield of 5.7%, compared with 5.9% in January 2018. Fotocasa highlighted that in just one year, the Community of Valencia went from being the 4th most profitable region to the 2nd.

It was followed by Murcia with a yield of 5.6%, compared to 5.7% a year earlier and Madrid (5.5% compared to 5.9% in 2018) (…).

The autonomous regions with the lowest yields were Galicia and La Rioja, with returns of 4.2% each; Navarra (4.4%) and Castilla y León (4.5%).

On the other hand, the most profitable city in the country was Hospitalet de Llobregat, which took the top position for the ninth year in a row, with a yield of 6.3%, the same percentage it obtained in 2018.

Original story: El Economista 

Translation: Carmel Drake