Buy to Let in Spain is gaining more interest for investors. According to figures from the Bank of Spain (BDE), profits from home rentals reached 4.3% at the end of 2012, the highest level since September of 2004. Therefore, the path to this increase was consolidated at the end of the last financial year.
In particular, gross profits from these assets have gone up progressively since June of 2008, when they hit their lowest levels of their course, landing at 3.29%. However, renting still has a long way to go to mend itself up to the point that it hit in December of 1998; 6.53%, when it reached the highest level that the BDE had seen within the information that it is in charge of.
According to the experts consulted by the website Idealista, justify this change in that the tendency in the flat rental business is a direct consequence of the fall in value of homes for sale. “Currently we are observing a growth in profits from flats being rented due to the fall in prices of these properties,” states Nicolas Llari de Sangenis, head of bank assets of Savills Consulting.
Llari de Sangenis, from Savills, recognizes that in the short-term, the price correction will follow in some markets, so he doesn’t rule out that in “specific areas,” profits from rentals will exceed 6%. “A profit of 6% on homes for rent would put us at very similar levels in comparison with the other countries in Europe.”