Increased Profits in Madrid Property Market Coming into 2017


The gross profitability per rent in the city of Madrid closed 2016 at 8.1%. A significant figure, but a drop of 1.8% compared to 2015.

The Most Profitable Areas of Madrid for Property Sales

The district of Retiro stands out at the top of the list for its sales profitability, followed by the areas of Arganzuela, the city center, Chamartín, Chamberí and Salamanca. In contrast, Usera recorded the worst performance in 2016.

The Most Profitable Areas of Madrid for Property Rents

Puente Vallecas continues to be the area with the best rental yields, maintaing that position since the beginning of the housing crisis. The average rental yield for Madrid was 5.71% in 2016, with a 3.93% difference between neighborhoods. This difference of almost four points represents an increase of 116% compared to 2015, at which point the best and worst returns in the city were only seperated by 1.82%.

Real Estate Price Increases in Madrid

Throughout 2016, house prices in the city of Madrid experienced an increase in both sales (+ 3.3%) and rental income (+ 13.93%).

San Cristóbal is the neighborhood with the lowest purchase prices in purchase of 852€/m2, and Jerónimos the most expensive at 5,503€/m2. These figures reflect a difference of 545% between the two districts.

When analyzing the rental prices we find the same trend: Jerónimos had an average price of 16.96€/m2, while San Cristobal was less than half at 7.10€/m2.

When comparing size we see that homes of more than 250m2 have the lowest unit price at 9.82€/m2 while smaller houses go for the highest per unit price of 13.1€/m2 for 85m2 houses.

Source: Image Source.