Rents in Europe keep rising, especially in capitals such as Dublin, Rome, Riga and Bucharest, which makes letting residential property an attractive business for investors. According to the international consultancy Global Property Guide, Madrid is among the most profitable European capitals in which to buy a home and then put it on the rental market.
Having analysed 32 European countries, Global Property Guide’s experts placed Madrid 12th. At the end of June 2024 the gross rental yield on residential property in the Spanish capital stood at 5.3%.
The most profitable places to buy a home to let are Dublin (7.33%), Rome (6.82%), Riga (6.46%), Bucharest (6.3%) and Podgorica (5.7%). The top ten also includes Lisbon (5.65%), London (5.59%), Brussels (5.54%), Warsaw (5.51%) and Vilnius (5.47%). The lowest yields, in turn, are in Oslo (2.46%) and Luxembourg (2.58%).
Within Spain, the list of the most profitable cities for buy-to-let investment is headed by Lleida at 8.1%, followed by Murcia (7.8%) and Huelva (7.6%). The least attractive options in this respect are San Sebastián (3.9%), Cádiz (4.7%), Pamplona and A Coruña (4.8% each).
