The average annual return on housing in Balearic Islands closed 2024 at 4.6%, 0.7 points lower than a year ago and 0.4 points less than 10 years ago, according to data published Wednesday by Fotocasa, which indicate that this yield is the lowest since 2014.
The report notes that, by municipality, the cities of the archipelago with the highest profitability are Manacor with 6.6% and Llucmajor with 5.5%, in Mallorca.
In Ibiza, Sant Josep de sa Talaia is the most profitable municipality in terms of housing, with 4.7% of profitability, according to this report. Also Ibiza, with 3.3% and Santa Eulària des Riu with 3%are on the list of those cities that get the most out of their homes.
In Palma, the profitability stands at 4.5%, in Maó at 4.1% and in Calvià at 4%.
Increased profitability
In 2024 the profitability of housing has increased in 11 communities and in eight of them the value is equal to or above the profitability of Spain (6.7%): Catalonia (7.6%), Region of Murcia (7.6%), Comunitat Valenciana (7.3%), Castilla y León (7.1%), Aragón (7.1%), Asturias (7.1%), Castilla-La Mancha (7.1%) and Navarra (6.8%). Below the average profitability are the communities of Extremadura (6.6%), La Rioja (6.6%), Cantabria (6.6%), the Basque Country (6.1%), Galicia (6%), the Canary Islands (5.9%), Andalusia (5.8%), Madrid (5.8%) and the Balearic Islands (4.6%).
The Director of Studies and spokesperson for Fotocasa, María Matos, has indicated that in general terms, the yield of buying a home and renting it out is among the highest in the world of the historical series and almost two points higher than a decade ago.
For the full article, please visit Diario de Ibiza website here.