Property investment: is it still profitable?

Investing in real estate is good business, if you have savings, buying a property will be more profitable than having it in the bank.

The real estate platform Idealista publishes its profitability index by provincial capitals every quarter. It analyses four products: housing, commercial premises, offices and garages. All generate good rental income, although some more than others.

Commercial premises and offices are the most profitable real estate investments in Malaga province. The least profitable is buying and then renting a parking space, although it always pays more than a 10-year bond.

In the first case, gross profitability in the first quarter of 2024 was over 8 per cent. Offices are offering a yield of just over 7 per cent, slightly less than in December. There are many companies wanting to set up in the province and there is not enough space for all of them.

One of the solutions that is being developed at breakneck speed is coworking spaces and, despite the growing number of these types of spaces, their occupancy level is high and there are even some that are occupied by a single company.

With regard to housing, real estate also yields a good return, although slightly lower than the other sectors because the purchase price is so high. However, the yield is stable at around 6 per cent without taking resale into account.