Interest in investing in housing remains at high levels in Spain. According to idealista data, the average yield of buying an apartment to rent reached 7.1% in the second quarter, exceeding the average return on 10-year bonds. However, profitability can vary depending on location and available budget. The latest report from Masteos, a company specializing in turnkey rental investment, analyzes the best adjusted investment options in different areas.

According to the report, for investments of up to 80,000 euros, the most profitable locations are currently Elda (Alicante), Talavera de la Reina (Toledo), Alcoy (Alicante), Ferrol (A Coruña) and Sagunto (Valencia), with yields of over 9%. This study has evaluated 35 municipalities throughout the country, considering variables such as expected profitability, population evolution, demand in the purchase and rental market, and the employment rate. These factors determine the most profitable locations to invest in housing according to the buyer's budget, which is divided into four alternatives: less than 80,000 euros, between 80,000 and 120,000 euros, between 120,000 and 200,000 euros, and more than 200,000 euros.

Next, we will review the locations with the best average gross returns according to investment budget:

1. Best cities to invest in housing for less than 80,000 euros:

Elda, Talavera de la Reina, Alcoy, Ferrol and Sagunto are municipalities where an average gross profitability of over 9% can be obtained. These locations not only have high profitability values, but also significant demand.

Also interesting in terms of profitability, although slightly lower, are the municipalities of Reus, Villa Real, Santa Cruz de Tenerife, Jerez and Linares. These localities stand out for their economic strength due to tourism, industrial activity and their large market volume.

2. Best cities to invest between 80,000 and 120,000 euros in housing:

For this budget range, the municipalities with the highest returns are Ourense and San Cristóbal de la Laguna, with average gross returns above 8%. Also included in the list are Sanlúcar de Barrameda, Badalona, San Vicente de Raspeig, Coslada, as well as the provincial capitals of Córdoba and Alicante.

3. Best cities to invest between 120,000 and 200,000 euros in housing:

In this budget range, the towns in the metropolitan area of Madrid (Parla) and Barcelona (Hospitalet and Santa Coloma de Gramanet) stand out. These municipalities are characterized by their proximity to large cities and their significant industrial activity, which generates employment and an increase in population. Also appearing on the list are some provincial capitals such as Santander, Salamanca, Valencia and Madrid, which are economic and tourist poles, making them attractive for investment.

4. Best cities to invest more than 200,000 euros in housing:

For investors willing to invest more than 200,000 euros in a rental property, the most profitable options are located in municipalities close to Madrid and Barcelona, such as Alcalá de Henares, Mollet del Vallés, Alcorcón, Collado Villalba and Vilanova i la Geltrú. These municipalities have yields ranging from 7.66% to 5.85%, and show demographic growth, as well as being well connected to the major capitals.

In short, housing investments remain attractive in Spain. The Masteos report provides a guide to the most profitable locations according to the buyer's budget, taking into account factors such as expected profitability, population evolution and economic dynamism. It should be noted that the locations mentioned are just some of the options available and it is important to carry out a thorough analysis before making any investment.

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