The rent derived from commercial shops in cities like Madrid or Barcelona offers a gross profitability that exceeds 5%, according to a recent profitability study by Alquiler Seguro.
The profitability depends on the area of Madrid you look at. The commercial areas of Gran Vía, Preciados, Castellana or Goya and Serrano have an average profitability of just 3.58%.
According to the commercial director of Local Insurance Rental, David Caraballo, profitability in these areas is the lowest in Madrid, despite the stability and security, because they are areas with “high economic activity.”
When the study is placed within the M-30 expressway, without counting the areas mentioned above, the study highlights that the profitability of this area amounts to 4.43%. On the other hand, between the rings of the M-30 and the M-40, profitability is the highest in Madrid, at 5.66%. However, as profitability increases, uncertainty increases, since moving away from the center may hinder the possibility of obtaining a “stable and solvent” business.
In the case of Barcelona, Paseo de Gracia and Portal del Ángel is where the greatest rent stability is found, although profitability, with 3.54%, is the lowest in the city.
The highest profitability in Barcelona is in the area that makes up the Center and Eixample, where profitability is 4.43%, and in the rest of the city, where the values are at an average of 5.11%.