Rental Housing Market in Catalonia: Emerging Trends
In recent years, interest in investing in residential real estate for rental purposes in Catalonia has grown significantly. However, the profitability of such investments varies greatly depending on the location. Analysts note that the region’s average return reached 8.8% in the second quarter of 2025. In the autonomous capital, Barcelona, the return was 8.3% for a standard 90-square-meter apartment.
How Profitability is Calculated: Key Parameters
To evaluate investment performance, investors use the gross yield indicator. It is calculated as the ratio of annual rental income to the purchase price of the property, multiplied by 100. Only the purchase price is considered in these calculations—taxes, notary fees, and possible renovation costs are not included. For example, in Barcelona, the average price per square meter of housing in the second quarter was €3,080. Thus, a 90-square-meter apartment would cost around €277,200. With an average rent of €21.4 per square meter, the annual rental income reaches €23,112. Dividing these figures results in a yield of 8.3%.
Factors Affecting Rental Profitability
Experts highlight a number of external and internal factors that can impact final profitability. These include the location of the property, type of real estate, level of demand in a particular area, as well as the technical condition and energy efficiency of the home. Vacancy periods, when the apartment is unoccupied, and unforeseen maintenance or repair costs are also possible.
Where is renting out property the most profitable
Investors show the greatest interest in coastal areas and major cities. In particular, the L’Eixample district in Barcelona is considered the most attractive for investment. Over the past five years, rental prices here have increased by more than 53%, rising from €16.3 per square meter in November 2019 to €25 in November 2024. The district is ideally located in the city center, boasts developed infrastructure, and offers architectural variety, making it popular among both locals and foreign tenants. High rental rates are also noted in the Gràcia and Sant Martí districts, which consistently attract various categories of renters.
Profitability in other regions of Catalonia
Outside Barcelona, on the Costa Brava coast in the province of Girona, rental yields are around 6%. In the cities of Tarragona and Reus, this figure exceeds 7%. In municipalities within the Barcelona metropolitan area, such as L’Hospitalet de Llobregat, Badalona, Mataró, and Terrassa, yields reach over 7.5%. These areas attract investors due to a combination of relatively affordable housing prices and stable rental demand.
Rental Market Outlook in Catalonia
Given current trends, experts forecast continued high interest in rental property investments in Catalonia. The most profitable assets remain those located in the metropolis and on the coast. It’s important to consider not only current yield figures, but also potential market changes linked to the economic situation and legislative initiatives.
