European property rents continue to rise, particularly in capital cities such as Dublin, Rome, Riga, and Bucharest, making property rentals an increasingly attractive investment. In June of this year, Madrid ranked 12th among Europe's most profitable capital cities for rental properties, according to data from Global Property Guide.
Based on an analysis of 32 European countries, Global Property Guide ranks Madrid as the 12th most profitable capital city for property investment in the rental market. According to the international real estate consultancy’s data, the gross rental yield in Madrid was 5.30% at the end of June this year.
There are five European capitals where rental yields are higher than in Madrid. Leading the list is Dublin (Ireland), with an average gross yield of 7.33%, followed by Rome (6.82%), Riga (6.46%), Bucharest (6.3%), and Podgorica (5.7%). Lisbon ranks sixth, with a return of 5.65%, followed by London (5.59%) and Brussels (5.54%).
According to the same data, the least profitable European capitals for buying property to rent are Oslo, Norway (2.46%), and Luxembourg (2.58%).
Profitability in Spain
Lleida ranks as the most profitable city in Spain for renting housing, with a gross yield of 8.1%, according to data from Idealista for Q2 of this year. It is followed by Murcia (8.0%) and Huelva (7.6%). In contrast, the cities with the lowest profitability in the country are San Sebastián (3.9%), Cádiz (4.7%), and Pamplona and A Coruña (4.8%).