Apartments on the coast are a great attraction, not only for tourists and holidaymakers, but also for investors who want to take advantage of the excellent profitability that some cities with beaches offer, especially at a time when interest rates are low, there is a shortage of suitable land and rental prices are on the rise .
Are you thinking of investing in real estate assets? Do you want to buy a property on the Spanish coast that you can rent out or sell later for a good profit? At Hipotecas.com we show you which are the hottest areas on the map.
Most profitable beach cities to rent
Nowadays, renting a property on the coast can generate a high return. Thus, according to the real estate portal Pisos.com , while the average rental price for a property located near the sea in 2018 was 682 euros per week , this year the average rent is 714 euros per week .
In fact, rental profitability in Spain is on average 5.4%, but many beach cities in the country far exceed this percentage , providing a greater benefit for owners.
Specifically, according to the ranking prepared by Fotocasa , there are 15 coastal municipalities where the yield of rental properties is above the national average. Where should you pay attention to the supply of properties? These are the locations with the highest yields along the entire coast:
- Algeciras (Cádiz): 6.6% profitability.
- Tortosa (Tarragona): 6.4%.
- San Fernando (Cadiz): 6.2%.
- Cartagena (Murcia): 6.2%.
- Sagunto (Valencia): 6.2%.
- Arona (Santa Cruz de Tenerife): 5.9%.
- Vera (Almeria): 5.8%.
- Chiclana (Cadiz): 5.7%.
- Laredo (Cantabria): 5.7%.
- Torrevieja (Alicante): 5.7%.
- Santa Pola (Alicante): 5.6%.
- Almeria : 5.6%.
- Gandia (Valencia): 5.5%.
- Calafell (Tarragona): 5.5%.
- El Vendrell (Tarragona): 5.4%.
On the other hand, at the other end of this classification, there are cities with beaches such as Zarautz (Guipúzcoa), Nerja (Málaga), Roses (Girona), Jávea (Alicante) or San Sebastián (Guipúzcoa) , where the lowest rates of profitability are recorded, with 1.2%, 2.1%, 2.4%, 2.5% and 3%, respectively, according to data obtained by Fotocasa from the information on the portal on the price of housing for sale and rent.
Localities with the highest combined profitability
Do you not want to rent the property, but rather buy it and then sell it at a higher price?
In general terms, buying a home on the coast is an average of 14% more expensive than in the interior of the peninsula , according to the 2019 report prepared by urbanData Analytics . That is, while the price of a 70-square-meter house in Spain amounts to 117,530 euros, a property with the same characteristics reaches 133,910 euros if it is located on the coast. However, these homes are much more in demand , both as vacation rental destinations and for second-home purchases by national and foreign citizens, so buying a flat in cities with a beach is also a good investment if you know how to choose where.
In this sense, according to this latest research, the properties with the highest return on investment through sales operations are located on the Andalusian Costa de la Luz and in the Canary Islands. In particular, San Cristóbal de la Laguna, in Tenerife, and Algeciras, in Cádiz, are the most profitable cities with beaches if you want to sell your home .
According to the newspaper Expansión , with 200,000 euros you can buy a flat in San Cristóbal de la Laguna, earning 15,400 euros in rent per year, which represents a 7.7% return. But if you also sell it within a year, the combined return reaches 17.3%, that is, in 12 months you will get 34,600 euros more than you invested in the purchase of the property .
However, don't forget to take into account the costs of having a second home when calculating your investment . In this post we remind you of them.