ROI on Spanish Property – Rental Returns & Regional Comparison | R E C
ROI on Spanish Property – What to Expect by Region
Return on Investment (ROI) is a key factor when buying property as an asset. Whether you’re interested in long-term rentals, holiday lets, or capital appreciation, R E C helps you understand what returns are realistic in Spain — and where to find them.
1. What Is ROI in Property Investment?
ROI measures how much you earn from your property versus what you invested. In Spain, ROI comes from:
- 💰 Rental income (short-term or long-term)
- 📈 Capital appreciation (property value increase)
- 📉 Tax benefits and net profit on resale
2. Rental Yields by Region (2024 Averages)
📍 Madrid & Barcelona (City Centres)
- ✔️ Long-term rentals: 3%–4%
- ✔️ Holiday lets: 5%–7% (licensed)
📍 Costa Blanca
- ✔️ Long-term rentals: 3.5%–5%
- ✔️ Holiday lets: 6%–10% (in hotspots like Altea, Jávea, Moraira)
📍 Valencia, Seville & Málaga
- ✔️ Rental yields: 4%–6%
- ✔️ Strong tourism demand
📍 Rural Areas & Inland
- ✔️ Lower purchase prices = higher % ROI
- ⚠️ Less liquidity and tourism impact
3. Residential vs Holiday Rental ROI
- Long-Term: Stable income, less effort
- Holiday Let: Higher income potential, seasonal fluctuations, more management
R E C helps you run real ROI simulations before you buy.
4. Capital Gains Potential
Some zones offer strong long-term appreciation:
- ✔️ Coastal new builds (Costa Blanca, Costa del Sol)
- ✔️ Urban regeneration zones in Valencia & Alicante
- ✔️ Well-positioned rural hotels or B&Bs
📘 Related Investment Resources
📞 Want a Personalized ROI Analysis?
R E C provides tailored profitability reports and helps you choose the right asset for your goals.