2023-08-17 08:13:39
Housing continues to focus the interest of investors. Despite the uncertainty and the entry into force of the Housing Law, the purchase of an apartment to use it for rent continues to lead the demand of savers, above the alternatives offered by commercial premises, storage rooms or land without building
This is confirmed by a report from the platform specialized in real estate investment Inviertis, where it reveals that the most sought after type of property is currently a apartment of about 70 m2, with three bedrooms and located in the surroundings of the big capitalsespecially in the metropolitan areas of Madrid, Malaga, Alicante or Zaragoza.
According to the study, this investor interest in these characteristics stems from the fact that “the residential areas that adjoin these capitals are the ones that have greater real estate growth potential in the short and medium term and very competitive purchase prices taking into account the high rental demand they register, which guarantees the rapid leasing of the asset and immediate profitability”.
Therefore, the document adds, “Investors continue to prefer the stability offered by rental housing over other types of assets”despite the fact that it is not the most profitable alternative.
Idealista’s data places the gross return on investment in housing at 7.1% in the second quarter, compared to 7.2% for garages, 9.7% for premises or 12.8% for Offices. By capitals, Lleida and Murcia are those that offer the highest profitability of the purchase of housing to allocate it to rent, since they reach 8.1% in both cases, followed by Huelva, which reaches 8%. Instead, San Sebastián is the city where profitability is lowest (3.7%), followed by Pamplona, A Coruña and Palma (4.6% in the three cities). In Madrid, profitability reaches 5% and in Barcelona it reaches 5.4%.
However, one of the advantages of investing in housing is the forecast that sales prices will remain stable, without ruling out slight falls, and that rental income will continue to rise, driven by the pressure of high demand over the low offer.
In this sense, from Inviertis they affirm that “purchase price adjustments have already been noted due to the fall in part of the demand, which will offer a better return to those who can invest in housing.” And they believe that this indicator will continue to be very sensitive to the evolution of buyer interest until the end of the year. “Less pressure from demand will generate price adjustments in those areas where the supply had not been absorbedbut they will remain stable in the most dynamic markets,” they add.
On the other hand, the platform predicts a average year-on-year increase of 6% in the rental price “in the event that the tightening of mortgage financing conditions does not stop its escalation and interest in housing rentals continues to increase to the detriment of their purchase.”
With this scenario on the table, Rebeca Pérez, CEO and founder of Inviertisinsists that “the real estate sector is the most sought-after for investment because neither the pandemic nor inflation have affected its progress too much” and adds that “the resilience of this industry has been left out of doubt”.
In that same line, Vicenç Hernández Reche, advisor to Inviertis and CEO of Tecnotramitaffects that “In times of uncertainty and volatility, small investors always choose to entrust their assets to tangible assets., which you can see and touch, and whose value and evolution are easily measurable and controllable”. For this reason, “real estate is almost always a safe environment for those looking for a stable return, although, like any other asset, it depends on extrinsic or macroeconomic factors,” he concludes.
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