Rental Yields in Spain Declined in 2026

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Rental yields in Spain declined in 2026. According to estimates from different analytical platforms, the average gross residential yield ranges from 5.4% to 6.5%. The highest returns are more often recorded in regional markets with more affordable property prices. In the largest cities, yields are generally lower, while taxes and maintenance costs further reduce investors’ profits.

Real Estate Investment in Spain: Yields by Segment

Offices remain the most profitable segment, although their yields have declined: in the second quarter of 2025 they stood at 11.5%, falling to 10.9% in 2026. Returns on commercial premises decreased from 10.1% to 9.9%, residential property from 7.2% to 6.5%, and garages from 6.7% to 6%, according to Idealista.

The decline affected all major categories. Even the lowest yield in the property market — 6% for garages — remains above the 3.4% return offered by Spain’s 10-year government bonds.

Idealista calculates gross yields using asking prices for property sales and long-term rentals. The figures do not include taxes, maintenance and repair costs, vacancy periods or other expenses incurred by owners.

Residential Yields in Spain: City-Level Figures

The highest rental yield for residential property in Spain in the second quarter of 2026 was recorded in Jaén at 7.4%. Murcia followed at 7.3% and Zamora at 7.2%. Residential investments generate an average annual return of 7.1% in Huelva and Lleida, and 7% in Castellón de la Plana and Segovia. The figure stands at 6.7% in Melilla and Lugo, 6.6% in Almería and 6.5% in Ceuta.

The lowest yield was recorded in San Sebastián at 3.4%. It stands at 4.1% in A Coruña and 4.4% in both Palma and Pamplona. Residential property yields reach 4.7% in Madrid and 5.2% in Barcelona.

The gap between Jaén and San Sebastián is 4 percentage points. Regional markets dominate the upper part of the ranking, while Madrid, Barcelona and other expensive cities lag behind in terms of returns on residential investment.

Differences between cities are also significant in the commercial segment. Retail premises in Lleida, for example, yield 11.2%, compared with 10.7% in Tarragona and 10.6% in Murcia. In Madrid, similar properties generate 6.9%, while in Palma the figure is 6.8%.

Apartment Rental Yields in Spain: Other Estimates

Global Property Guide analysts report that gross residential rental yields in Spain declined from 5.45% to 5.43% in the first half of 2026. Among the markets reviewed, Barcelona recorded the highest figure at 7.4%, followed by Murcia at 6.14%, Valencia at 5.99% and Alicante at 5.96%.

Yields are estimated at 5.22% in Córdoba, 5.2% in Seville, 5.11% in Tenerife and 5.04% in Madrid. Málaga stands at 4.8%, while the lowest figure in the study was recorded in Palma de Mallorca at 4.41%. The service also provides separate data for central districts: yields reach 6.33% in Barcelona’s Eixample and 4.64% in central Madrid.

These results differ from Idealista’s estimates because of differences in methodology and coverage. Global Property Guide calculates average yields for one-, two- and three-bedroom apartments by comparing median sales prices and rents in selected cities. The calculations are based on property listing data. The service notes that net yields are typically around 1.5–2 percentage points lower after taxes, repairs, maintenance, agent commissions and other expenses.

Commercial Property Yields in Spain

In Spain’s retail property segment, the highest yield in the second quarter of 2026 was recorded in Lleida at 11.2%. Tarragona followed at 10.7%, Murcia at 10.6%, Huelva at 10.5% and Zaragoza at 10.1%. Such properties generated an average return of 8% in Barcelona, 6.9% in Madrid and 6.8% in Palma.

Lleida also led the office market with a yield of 10.2%. It was followed by Seville at 9.9%, Zaragoza at 9.7%, Castellón de la Plana at 8.3%, Vitoria at 8.1%, and Las Palmas de Gran Canaria and Logroño at 7.9% each. Office yields stood at 6.8% in Barcelona, 6.2% in both Málaga and A Coruña, 5.9% in Madrid and 5.7% in Palma. Idealista does not provide figures for around half of Spain’s provincial capitals because of insufficient listings.

The highest yield on garages was recorded in Murcia at 10.3%. Returns reached 7.1% in Castellón de la Plana, 6.9% in Ávila, 6.7% in Barcelona and 4.9% in Madrid. The lowest figures were recorded in Salamanca at 2.8%, Palencia at 3%, Granada at 3.1%, Palma at 3.2% and Valladolid at 3.3%. In these five cities, garage yields are below the 3.4% return on Spain’s 10-year government bonds.

Outlook for Real Estate Investment in Spain

International Investment analysts note that declining yields are making purchase prices, maintenance costs and the chosen rental model increasingly important. Investors must consider not only potential profits but also local restrictions, particularly in the short-term rental segment.

Barcelona has adopted one of the toughest approaches. The city no longer issues new licences for tourist apartments, while permits for around 10,000 existing properties are not expected to be renewed after November 2028. The restrictions were challenged in court, but Spain’s Constitutional Court upheld the relevant rules.

Moratoriums and quotas are also being introduced in other municipalities and regions. Madrid has imposed restrictions in its historic centre, while in the Canary Islands a substantial share of the housing stock must be reserved for permanent residential use.

For investors, the ability to obtain and renew licences, local regulations and the future permitted use of a property are becoming increasingly important. Under these conditions, long-term rentals and cities with more affordable purchase prices may prove more resilient than tourist markets facing growing regulatory risks.