Spain-based real estate marketplace Idealista — which also operates in Italy and Portugal — has added a tool called Investment Opportunities to its website.
It notes that, according to its own data, the average rental yield on an apartment in Spain is 7.1%, adding: “Many Spaniards have savings in the bank that they want to make profitable, but they do not know what type of property to invest in and where.”
With Investment Opportunities, “… investors can find the best housing investment opportunities in any neighborhood in Spain,” it adds.
Using this tool, users can filter listings using such criteria as
- Desired profitability — select the yield you want, adjusted for expenses and taxes
- Level of rental demand in the area
- Estimated rent, as calculated by Idealista’s valuation algorithm
- Estimated price — whether the algorithm assesses the home as over- or under-priced
- Home characteristics — whether it has a garage, storage room, elevator etc.
Moreover, an investment calculator uses investment parameters — property price, amount financed, interest rate and term, renovation, operating costs etc. — to calculate gross and net profitability, cash flow and return on investment.
A subscription to Idealista’s data service is required to use Investment Opportunities.
The screenshot above shows a list properties for sale in Logroño, the capital of La Rioja in the north of the country. The property at the top of the list (potentially the most profitable in the city, based on its current listings, according to Idealista), has a sale price of €55,000 ($58,955 U.S.), an estimated monthly rent of €860 and a rental yield of 16.6%.