These are the most profitable regions and municipalities in Spain to buy a house

by Lorraine Williamson
most profitable areas

The real estate portal Fotocasa has prepared a ranking of the regions and municipalities in Spain where it is most and least profitable to buy a house.

Many potential buyers of a property look not only at the location, but also at the general condition of a property, the minimum value and the charges. But profitability can also be a determining factor.

According to the latest data published by the real estate portal Fotocasa, the profitability of housing in Spain in the first quarter of 2024 was 6.6%. This figure is the same as in the same period last year. Compared to five years ago, the first quarter of 2019, 0.4 points higher than in the first quarter of 2019, when it was 6.2%. This data reflects that the real estate industry is still considered the safest and best-performing asset.

Most profitable region

In Spain, there are autonomous communities where it is more profitable to buy a house compared to others. This is also evident from Fotocasa’s research. The most profitable region to buy a house is the Valencian Community. Profitability was 7.9% in the first quarter of 2023.

After the Valencian Community come the following regions;

  • Murcia (7.7%)
  • Cantabria (7.4%)
  • Castilla y León (7.0%)
  • Catalonia (7.0%)
  • Asturias (7.0%)
  • Castilla-La Mancha (6.9%)
  • Navarra (6.9%)
  • Aragon (6.6%)

These all score above average.

Cogesa Expats

Madrid (5.5%), the Basque Country (5.9%) and the Balearic Islands (5.3%) are now the least profitable regions for investment in the real estate market.

Most profitable municipality

Of all the municipalities surveyed, 4% have a profitability equal to or higher than the average of Spain. Vícar has emerged as the most profitable municipality to buy a house. The small town in Almeria, 15 minutes from the coast, offers a yield of over 9%.

Vícar is followed by other municipalities such as Ocaña with 8.3%, Moncofa with 8.2%, Isla Cristina with 8.0%, Ponferrada with 7.9%, Talavera de la Reina with 7.8%, Tàrrega with 7.6%, Noja with 7.5%, Manresa with 7.5%, Chipiona with 7.0%, Ontinyent with 6.9%, Langreo with 6.8% and Roquetas de Mar with 6.7%.

Profitability below 5%

According to data from the survey, 72% of the cities analysed have a profitability of less than 5%. Santa Eulària des Riu, Calvià and Ibiza Town score the worst, all three with 2.0%. This is followed by Orihuela with 2.3%, Lboraya with 2.4%, Altea with 2.4%, Adeje with 2.4%, L’Eliana with 2.4%, Donostia – San Sebastián with 2.4% and Manacor with 2.4%.

Also read: The most expensive house in Spain

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