«THE INCREASE IN HOUSING PROFITABILITY IN LOW INCOME AREAS»

Source: photo es.pinterest.com

According to a financial study published by the Bank of Spain, only 8% of home landlords are companies. The vast majority of those who offer their properties for rent are individuals, obtaining a profitability of 10%.

These individuals have added about 100,000 homes to the market each year. However, this increase still does not keep pace with demand; the Bank of Spain estimates that there are around 600,000 homes missing until 2025 to balance the real estate market. The reality is that the Spanish economy has had a housing deficit since 2022 due to growing demand since then. All of this has led owners to increase rental prices, achieving greater profitability each year, reaching the current average figure of 10.8% gross per year.

The diagnosis of the Bank of Spain is that the rental market is “dominated by individuals who are not large owners”

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