€33.4bn of empty property rental income missed in Spain

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Failure to let property is proving costly according to real estate portal portal pisos.com. Credit: Shutterstock

OWNERS of empty properties in Spain are missing out on an estimated €33.4 billion a year in rental income.

Of the 25 million homes in Spain some 13 per cent are lying empty for a variety of reasons.

Many are second homes used for just a few weeks a year by their owners – but a failure to let them out is proving costly according to real estate portal portal pisos.com.

A rented house would lead to an average profit of € 9,732 per year – 15 per cent more than last year.

Owners of empty properties in Madrid (16,740 euros/year), the Basque Country (13,512 euros/year), the Balearic Islands (13,308 euros/year), Catalonia (11,784 euros/year), and the Community of Valencia (11,052 euros/year), are the ones who theoretically would gain the most by letting their empty properties.

Madrid is the Autonomous Community with the most expensive rental price, 15 euros per square metre.

“The rental market is facing a particularly difficult time in some regional capitals, where the supply of rental housing should be increased. Not only would the current shortage be alleviated and the demand from tenants eased, but also the profitability obtained would help to improve the finances of many families in possession of unproductive housing,” said Ferran Font, Director of Studies at pisos.com

4 COMMENTS

  1. I’m always looking for rental property in Spain during winter months & would love to see more choice! Get going all you people with empty accommodation!

  2. Many empty properties are the consequence of Spain’s inheritance tax rules. One has to pay the tax before one can inherit and if the tax is more than one has or can afford, the inheritance property just lies empty. This results in empty properties all over, decaying until they are in ruins.

  3. The local authorities in andelusia have set standards of terms that are to reduce supply so as not to compete with hotels, add that to draconian fines and not allowing running costs to be set against rentals makes it not worthwhile for the casual landlord.
    Plus who wants a stranger in your home albeit second home to damage and disrespect the property.

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