Palma rental yield ranks third lowest in Spain at 4.4%

Palma, Mallorca recorded a gross rental yield of 4.4% in July, the third-lowest rate among Spain’s provincial capitals, according to a pisos.com report released on Tuesday, 25 August. Only San Sebastián, at 3.9%, and Girona, at 4.3%, posted lower returns.

Palma’s figure was well below Spain’s 8.02% average. The property platform said that higher purchase costs in Palma, San Sebastián and Girona reduce the return available to investors.

Across Spain, a typical 100-square-metre home cost €221,580 in July, or €2,462 per square metre, while average monthly rent stood at €1,482. That produced annual gross income of €17,784 and a gross return of 8%, up 0.5% on the same period a year earlier.

Tarragona recorded an 8% yield, followed by Seville with 7.7% and Huesca with 7.4%. Jaén reached 7.3%, Castellón 7.1%, while Murcia, Segovia, Almería, Córdoba and Ávila each registered 7%.

Ferran Font, studies director at pisos.com, said rental demand continues to outstrip the available supply. He said differing returns between cities reflected local market conditions, with lower purchase prices in Tarragona, Seville and Huesca supporting stronger yields.

Topics: Housing · Politics · Economy · Palma

Source: Europa Press / Mallorca.com