Despite the decline in prices during the crisis, real estate in Spain is still overvalued, and its liquidity remains low. This is the main conclusion by the Union of Spanish Consumers and Users (OCU) after comparing the long-term fixed rates and the total income from the rental housing in large cities as Barcelona, Valencia, Madrid and Sevilla.
According to Spanish Property Insight, 85% of houses in the 300 investigated areas of Spain have inadequate cost, bringing the low return on the lease.
For instance, not all objects in the Madrid region are attractive investment. The OCU experts advise to look at 3 of the 125 investigated districts, out of which two are in Puente de Vallecas, and another one is in Barajas, near the airport. There will be a long-term stable return on the rental (minimum 5%), but the resale of housing will be difficult to earn after a couple of years.