Rental profitability in Palma is higher than in Paris or Berlin

Buying a property in the Balearic Islands, and specially in Palma, and then renting it is much more profitable than doing this in main capitals as Paris, Madrid or Berlin.

Profitability marks concerning the rental market in the Balearic Capital is one of the highest in Spain, and in Europe, with 4,2%. Investments are still increasing, with prices ranging from 2.000 Euros/m2, and are also highly profitable: the average rental price is around 93 Euros/m2 per year.

This mark should increase up to 5%, like in Milan, Barcelona and Rome, and shows a clear trend: the rental market in the Mediterranean region is still increasing.

Following this data, recently shown up by Idealista, Palma has similar profitability marks than European cities, despite the fact that rental demand in Spain is still lower than in European capitals.

Rental prices in Spain have increased by 0,8% this year in comparison with the previous year, but they are still under 2007 marks, when prices reaching 9 Euros per square metre in average.

That’s why buying a property in the Balearic Islands and then renting it could be a good investment with still a high profitability despite the present times of crisis, but for sure a much more secure investment than in past good times.