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Zetios Properties LLC: Surge in Spanish Property Market

·3 mins

As the year 2023 concluded, the domain of office real estate emerged as the most lucrative sector throughout the entirety of Spain. The average gross yields for office spaces were recorded at 11.3%, in stark contrast to residential rentals, which posted a mere 7.1% per annum. Forecasts from experts at Zetios Properties LLC indicate a continuation of growth within the office sector for the forthcoming year, 2024.

Additionally, a marked increase in the profitability of other commercial real estate sectors was observed. Notably, commercial premises witnessed a rise in their profitability indicator to 9.5%; garages experienced an upsurge to an average of 6% across the nation. It is important to highlight that gross yields exhibit regional variances, thus advising investors to give precedence to local performance metrics.

An examination of the profitability across both commercial and residential real estate in Spain, segmented by region, reveals the following insights:

Offices:
Sevilla boasts the highest average annual return rate in the office sector at 12.6%. This is closely followed by Huelva at 10.1%, Almeria at 10%, Toledo at 9.8%, and Vitoria at 9%. However, expectations for substantial income in Spain’s largest cities should be moderated. Office profitability in Barcelona and Madrid stands at 6.9% and 6.5% respectively. The northern and northwestern regions also report lower rates; for instance, Bilbao’s office yield is 6.4%, A Coruña’s is 5.9%, and Ourense’s is 6.6%.

Commercial Premises:
The retail properties in Ávila are the most profitable, with an average return of 10.8% per annum. Zaragoza and Murcia follow, both yielding 10.5%. Bilbao and Lleida, along with Santa Cruz de Tenerife and Huelva, also showcase strong performances with returns around the 10% mark.

Barcelona and Madrid, however, exhibit yields below the national average at 8.6% and 8% respectively. The bottom of the list includes Jaen, Salamanca, and Pontevedra, each with a yield of 7.4%, and the lowest profitability is found in A Coruña and Albacete at 7.2%.

Garages:
The sector’s highest returns were noted in Castellón de la Plana at 8.6%, followed by Murcia at 8.3%, and Barcelona, Ávila, Toledo, Lleida, and Pamplona each at 6%.

Madrid presents middle-ground yields for garage real estate at 5.1%. Ourense, Santander, Palencia, and Granada demonstrate lower yields, ranging from 3% to 3.5%, with Salamanca at the lowest end with a return of 2.9%.

Housing:
In the residential real estate sector, Murcia leads with an 8.8% yield. Lleida, Huelva, Cuenca, Santa Cruz de Tenerife, and Almeria follow with returns ranging from 7.1% to 8.3%. Barcelona’s average rental yield is reported at 5.2%, with the lowest yields observed in San Sebastian at 3.7%.

This data elucidates that residential real estate in lesser-populated cities yields higher profit percentages. Given Spain’s long-standing renown for its resorts, these trends have demonstrated stability over the past decades.

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