Spanish rental yields on the up

Rental yields for Spanish property investors are on the up, according to new figures.

Data from the Bank of Spain shows that the average gross return on Spanish real estate has increased from 3.29 per cent in 2008 to 4.08 per cent in 2012.

This may be a long way off the 1998 peak, when landlords in Spain could expect returns of 6.53 per cent from renting out property, but as rents fall, so do prices, helping overall yields to increase.

The news follows a report from Idealista.com, which ranked regions in Spain according to the rental income available from each area's property.

The findings placed property in Toleda at the top of the buy-to-let table, offering yields of 6.13 per cent. The worst area, on other hand, is Pontevedra in Galicia, which only provides investors with a yield of 3.35 per cent.

(via Spanish Property Insight)