The residential rental market in Spain showed strong growth in 2024–2025, and this trend is expected to continue in 2026. According to specialized analytical platforms, the average gross rental yield for residential property nationwide currently ranges between 6% and 7% per year.

Spain is chosen for real estate investment aimed at rental income more often than most other European countries due to its relatively high yields. In some locations, returns exceed 7.5–8%, while in Central Europe they typically remain in the 3–5% range.

In this article, we outline which Spanish cities demonstrate the highest rental yields, based on data from the country’s largest real estate portal, Idealista.

Contents:

  1. Best Spanish Cities by Residential Rental Yield
    1. Murcia
    2. Jaén
    3. Segovia
    4. Zamora
    5. Huelva
  2. High-Yield Cities Outside the Top Five
  3. Why Madrid and Barcelona Are Not Among the Top Performers

Best Spanish Cities by Residential Rental Yield

To compile this ranking, we relied on the gross rental yield indicator. This is a core metric used in European residential market analytics and allows for comparison between cities with different price levels and rental rates using a unified approach.

Gross rental yield is calculated as the ratio of potential annual rental income to the average purchase price of a property. This makes it possible not only to compare percentages, but also to account for the acquisition cost when assessing potential profitability.

Accordingly, the ranking is based on a simple principle: where rental rates are high relative to purchase prices, gross yield is also higher.

Murcia

Murcia is located in southeastern Spain and is the capital of the autonomous community of the same name. The city attracts relatively few tourists and primarily functions as an administrative, educational, and economic center of the region.

In 2024–2025, the average purchase price of secondary housing in Murcia ranged from €1400 to €1900 per square meter. The average long-term rental rate is about €9.0–9.5 per square meter per month, with the market largely focused on long-term leases.

In the second quarter of 2025, the gross residential rental yield in Murcia reached 8.0% per year, the highest figure among Spain’s provincial capitals.

Jaén

Jaén is also a provincial capital, located inland within the autonomous community of Andalusia. Due to its distance from the coast, the city receives limited tourist traffic, and the rental market is mainly driven by domestic demand.

In 2024–2025, the average price of secondary housing in Jaén ranged from €1400 to €1600 per square meter. For comparison, the national average during the same period exceeded €2000 per square meter, while prices in major metropolitan areas were three to four times higher. The average long-term rental rate in Jaén is approximately €8.0–8.2 per square meter per month.

In the second quarter of 2025 the gross rental yield in Jaén reached 7.6% per year, significantly above the national average of 7.2%.

Segovia

Segovia is located in the autonomous community of Castile and León, about 90 kilometers northwest of Madrid. Travel time to the capital is around 30 minutes by AVE high-speed train and approximately 1 to 1.5 hours by car. This proximity supports strong demand from tenants working in Madrid.

The average purchase price of housing in Segovia ranges from €1700 to €2400 per square meter, although properties can still be found in the €1400–1550 range. This is higher than in some inland provincial capitals, but still two to two and a half times lower than average prices in Madrid.

According to Idealista, Segovia ranks among the top three cities with a gross residential rental yield of 7.6% per year, supported by average long-term rental rates of €11–13 per square meter per month.

Zamora

Zamora is situated in the autonomous community of Castile and León, in northwestern central Spain near the border with Portugal. The city serves as the administrative center of the province and functions as a local regional hub.

Zamora is among the cities with the lowest housing prices among Spain’s provincial capitals. The average secondary market purchase price ranged from €1170 to €1230 per square meter. The average long-term rental rate is approximately €8.4–9.0 per square meter per month.

Gross residential rental yield in Zamora also reached 7.6% per year, comparable to Jaén and Segovia, but with a significantly lower entry threshold for investors.

Huelva

Huelva is located in southwestern Spain, within the autonomous community of Andalusia, near the Portuguese border and the Atlantic coast. The city is the capital of the province of the same name and serves as a regional center.

In 2024–2025, the average purchase price of secondary housing in Huelva ranged from €1250 to €1550 per square meter. The average long-term rental rate is about €8.0–8.5 per square meter per month. Rental demand is mainly generated by:

  • employees in port and chemical industries;
  • logistics and service sectors;
  • administrative and public sector workers.

Although the market is primarily oriented toward long-term rentals, prices also rise during the peak tourist season. This is particularly evident in rental rates, which can reach €10.5–11 per square meter per month. Despite this seasonal fluctuation, gross rental yield remains at around 7.6% per year.

High-Yield Cities Outside the Top Five

In addition to the market leaders, Idealista’s study for the second quarter of 2025 highlights several other cities where gross rental yields remain above or close to the national average.

Top 6–10 Spanish cities by gross residential rental yield:

City

Average purchase price, €/m²

Average rent, €/m² per month

Gross rental yield

Albacete

1600–1800

8.5–9.0

6.2–6.5%

Ciudad Real

1400–1500

7.5–8.5

6.8–7.3%

Zamora

1150–1250

8.4–9.0

7.0–8.0%

Castellón de la Plana

1500–1650

8.3–8.8

6.2–6.6%

Palencia

1700–1900

8.0–9.0

5.5–6.3%

The price factor remains decisive. Cities in this second tier of the ranking are characterized by purchase prices in the €1200–1700 per square meter range, which is still around 30–50% below the national average in Spain.

Where to Rent Housing in Spain: Comparison of Prices, Incomes, and Cost of Living in Different Cities
 

Why Madrid and Barcelona Are Not Among the Top Performers

Despite the fact that Madrid and Barcelona remain the most liquid and in-demand housing markets in Spain, from the perspective of gross rental yield they lag significantly behind regional capitals.

The main reason lies in the imbalance between purchase prices and rental rates. In 2024–2025, the average housing price in these cities amounted to €4200–5500 per square meter in Madrid and €4500–5000 per square meter in Barcelona.

At the same time, average long-term rental rates were:

  • €22–23 per square meter per month in Madrid,
  • €23–24 per square meter per month in Barcelona.

At these levels, rental income in absolute terms does not offset the high entry cost. As a result, gross rental yield in both cities remains at around 4–5% per year. To reach at least the national average of 7.2%, rental rates would need to be at least 30–50% higher.

Nevertheless, investors continue to purchase property in Spain’s major cities because:

  • assets there are highly liquid and rarely remain vacant;
  • housing in these markets is better suited as a financial asset;
  • the markets are larger, which means a wider choice of properties and a greater number of potential tenants.