Alamar_la_calaThe growing attraction of Spanish property as an investment has been confirmed by a study that reveals gross rental yields for housing reached an average of 5.5% in Spain last year. With banks offering next to nothing to savers and Spanish government 10-year bonds paying just 1.7% interest, housing in Spain offers considerable advantages as an investment vehicle, especially when the prospect of capital gains from appreciating assets are factored in. Capital growth on Marbella property Indeed, on average property values in Spain saw 4.5% growth in a 12 month period up to the end of last September, according to the EU’s statistics office Eurostat, underlining the value of buy-to-let property in the country as a sound medium to long term investment. This interpretation of the real estate market is one that has persuaded numerous international funds to target Spanish property as they have recognised its excellent value and prospects for good returns. Leading the way were aggressive investors such as George Soros, but 2015 also saw more risk adverse institutional investors moving into Spain. This led to deals valued in the hundreds of millions for portfolios of thousands of properties, but similar good value is available to smaller scale investors purchasing second and third homes. DCIM100GOPROG0051312.Rental yield on Marbella real estate The figures for rental yield come from property portal idealista.com, which has used its database of hundreds of thousands of properties on the market to compile the statistics. This it did quite simply by dividing the average asking prices for properties in specific locations by average rental prices in those areas. In fact, using this method probably understates the yield achieved, as few homes are sold at the initial asking price in what is still a buyer’s market in parts of Spain, while rents are usually not subject to the same level of negotiation. Locally, Málaga province slightly outperformed the rest of Spain when it came to yields, with a figure of 5.7% for residential units. Commercial premises did even better, with offices showing a gross return of 5.9% and retail/catering premises averaging 7.6%. There is no doubt that real estate in Marbella is increasingly attractive to those searching for an income, along with the potential for capital growth. The resort town is in many ways ahead of the rest of Spain in the property cycle, making it the ideal time to invest in the area. Altavista Property has a wide selection of properties suitable for investors; please contact us for more details.