Investing in the real estate business continues to be a safe bet and a traditional safe-haven asset. However, not all real estate assets offer the same profitability. According to data from Idealista, during the third quarter of 2023, offices stand out as the most profitable product, with 12.8%, followed by commercial premises (9.8%), parking spaces (7.7%), and residences (7.1%).
Offices top the profitability list, being the most attractive real estate investment with 12.8%, compared to 11.3% the previous year. Profitability varies by city, with Zaragoza being the most profitable at 11.7%, followed by Almería (11%), Vitoria (9.2%), and Murcia (9%). Surprisingly, they outperform major capitals like Barcelona (7.8%) and Madrid (7.4%).
The excess supply of offices has led to their conversion into residential properties and hotels. Urbanitae has successfully financed conversion projects, such as the García Lorca project and the Doce de Octubre project, which were well-received by investors.
As for commercial premises, they rank second in profitability after offices. The average rental yield is usually attractive, especially in cities like Ávila (12.5%), Murcia (11.4%), Girona (10.7%), Zaragoza (10.7%), and Santa Cruz de Tenerife (10.7%). Barcelona and Madrid have profitability rates of 8.4% and 8.2%, respectively.
Parking spaces, despite experiencing a boom in Spain, are the least profitable product in many capitals. However, parking spaces offer opportunities for smaller-volume investments, with higher return rates in cities like Murcia (11%), Castellón (8.3%), Toledo (7.6%), and Barcelona (6.7%).
Storage rooms, due to their high demand and ease of revaluation, have become an attractive segment for investors. Urbanitae has financed storage room projects with returns exceeding 18%, demonstrating investors’ continued interest in this type of asset.
At Urbemar, we are experts in advising and developing investments in the tertiary sector and their subsequent management. Our experience in asset management and commercial property management is a guarantee of success for any investment. Shall we talk?
