Overview of Rental Yields Across Spanish Cities
With inflation on the rise, some banks resist raising interest on deposits, while many people keep an eye on how their money performs. Property can be a practical alternative for safeguarding savings. It often offers more stability than other assets such as public debt and stock markets, and it can yield higher returns when managed carefully.
Not every option is equally attractive, and the decision depends on location, market conditions, and investment goals. A recent review of city markets shows clear differences in profitability between residential and commercial properties, parking spaces, and office setups.
In Alicante, for example, the analysis suggests that rental-focused commercial properties can deliver notably strong returns when conditions are right. Current market prices, combined with rental demand, point to potential annual yields around 9 percent for well-chosen commercial assets intended for leasing.
For investors seeking multiple streams, second properties may offer approximately 7.5 to 7.7 percent annual profitability, based on the calculations used by market analysts. Purchasing a home and renting it out can require an initial outlay, but long-term returns often hover near the seven percent mark, depending on location and occupancy levels.
Smaller-scale investments, such as securing parking spaces, typically show around five percent net annual profit. Across the board, these yields generally outpace the current long-term benchmark of public debt, which sits around three and a half percent in many markets.
Across other provinces, the picture shifts. Nationally, parking yields average around six percent, residential rental yields around seven percent, and urban centers can see higher figures for offices and commercial space—some markets report yields in the double digits for certain office properties.
In Alicante, the trend of rising rental activity continues, yet the city faces a slower pace of new housing supply. This combination often strengthens rental demand and supports steady yields for investors who focus on high-demand segments and well-sited properties.
When comparing the best city options to invest in rentals, several markets stand out. In terms of residential leases, some cities offer robust returns around eight percent, while the best office markets can reach into the teens. For commercial venues, certain locations demonstrate strong profitability, with wide variation based on neighborhood, access, and foot traffic.
Overall, the availability of rental housing in Alicante remains a factor. However, the central takeaway for investors is clear: careful selection of assets—considering location, tenant demand, and operating costs—can produce attractive yields that exceed non-property benchmarks. The mix of property types, from offices to garages, provides several avenues to build a resilient rental portfolio across the region.