Recovering the investment of buying a second-hand home in the Canary Islands to rent it out currently takes 16 years, which is four years less than it took a decade ago.
According to a study based on the sale and rental prices of the Fotocasa Real Estate Index of the last 15 years, the reduction has been 4.1 years in the last decade, going from 20 to 16 years to pay for an investment property.
Thus, Canarians ten years ago had to contribute an average of 111,051 euros for an 80 square meter house, compared to the 193,662 euros that have been paid on average in the Canary Islands in 2023.
“The trend indicates that less and less time is needed to make a home profitable. In fact, compared to the historical data of the last 15 years, almost 10 years have been cut to face the investment of the property", explain from Fotocasa.
After 16 years after the purchase of the house and putting it up for rent, (without taking into account the expenses derived) the investor would begin to obtain a clean income from the lease of the house.
Data by autonomous communities
In 2023, buyers of an investment property in the Balearic Islands will take an average of 19 years (compared to 22 years in 2013) to pay for what they invested (307,742 euros) for an 80-meter apartment, according to the Fotocasa study.
Buyers of a similar home in the Valencian Community will recover what they invested (140,614 euros) in 2023, in just 12.6 years (compared to 22.3 years in 2013).
To pay for an investment property purchased in 2013, it took more than 20 years, while in 2023 none of the CCAA exceeds that time. Cantabria is the Community that has reduced the time the most (10.8 years less) in paying what it has invested in the last ten years, it has gone from 24.4 years (in 2013) to 13.6 years (in 2023).
The order from highest to lowest of the CCAA in which residents take the longest to pay for what they invested in 2023 is: Balearic Islands with 19.0 years, Madrid with 18.1 years, La Rioja with 17.0 years, Basque Country with 16.8 years, Galicia with 16.6 years, Andalusia with 16.5 years, Castilla-La Mancha with 15.9 years, Canary Islands with 15.8 years, Extremadura with 15.8 years, Aragon with 15.8 years, Spain with 15.7 years, Navarra with 15.6 years, Asturias with 14.7 years, Catalonia with 14.4 years, Castilla y León with 14.3 years, Cantabria with 13.6 years, Region of Murcia with 13.6 years and Comunitat Valenciana with 12.6 years.
