Discover Spain’s cities with the highest rental yield in 2025. Explore where savvy investors are earning the best returns, and get expert tips on maximizing your property investment in Spain.

Spain’s Cities with the Highest Rental Yield: 2025 Investment Hotspots

Spain continues to be a magnet for real estate investors, thanks to its vibrant culture, growing rental demand, and profitable property markets. For investors hoping to maximize their returns, targeting Spain’s cities with the highest rental yield is crucial. In 2025, several Spanish cities stand out with impressive yields, making them prime targets for both domestic and international property buyers.

Whether you’re new to the Spanish property market or looking to expand your real estate portfolio, this guide highlights the best cities in Spain for rental yields—and offers key strategies to help you make the most of your investment.

Why Focus on Rental Yield in Spain?

Rental yield measures the annual rental income as a percentage of the property’s purchase price. A high rental yield means better cash flow, faster return on investment, and a cushion against price fluctuations. As Spanish cities continue to attract students, professionals, and tourists, understanding where yields are strongest is essential for smart investing.

Spain’s Top Cities for High Rental Yield in 2025

1. Valencia

Valencia is leading the way as one of Spain’s best cities for rental yield. Its affordable property prices combined with a strong rental market—thanks to students, expatriates, and a booming tourism sector—create great opportunities for investors.

• Average Gross Rental Yield: 6%–7%
• Hot Neighborhoods: Ruzafa, El Carmen, Benimaclet
• Why Invest: Cheaper than Madrid/Barcelona, high demand for both short- and long-term rentals

2. Murcia

Murcia stands out as a rental yield hotspot. With a growing university, thriving regional economy, and lower property prices, yields in Murcia are highly competitive.

• Average Gross Rental Yield: 6%–7%
• Best Areas: City Centre, Espinardo (university area)
• Investor Tip: Ideal for affordable buy-to-let and student accommodation

3. Malaga

Malaga, the capital of the Costa del Sol, is popular among tourists, expats, and digital nomads. Its rental demand is strong year-round, pushing up yields especially for short-term and tourist rentals.

• Average Gross Rental Yield: 5.5%–6.5%
• Promising Districts: Centro Histórico, La Malagueta, Teatinos (university)
• Pro Tip: Consider modern apartments near the city center or beach for the best returns

4. Alicante

Alicante offers exceptional rental returns thanks to its popularity with both local and international tenants. Low property prices and steady tourism boost occupancy rates and profitability.

• Average Gross Rental Yield: 5%–6.5%
• Recommended Neighborhoods: Playa de San Juan, Centro, Benalúa
• Opportunity: Strong market for holiday lets and expat rentals

5. Zaragoza

As the fifth largest city in Spain, Zaragoza is a hidden gem for investors seeking strong yields outside Spain’s major coastal cities.

• Average Gross Rental Yield: 5%–6%
• Best Areas: Casco Antiguo, Delicias, Universidad district
• Why Choose Zaragoza: Attractive to students and professionals, lower buy-in cost

Other Notable High-Yield Cities in Spain

• Seville: Consistently high demand from students and tourists; yields around 5%–6%
• Granada: Major university city offering yields up to 6%
• Palma de Mallorca: Tourism demand creates rental yields in the 5%–6% range

Factors Driving High Rental Yields in Spanish Cities

• Strong Tourism: Cities with robust tourist industries (Malaga, Alicante) support lucrative short-term rental markets.
• Student Demand: University towns (Valencia, Murcia, Granada) sustain year-round rental needs.
• Affordable Entry Prices: Secondary Spanish cities often deliver higher yields due to lower property costs.
• Urban Regeneration: Up-and-coming neighborhoods benefit from infrastructure and cultural projects.

How to Maximize Rental Yield in Spain

1. Choose the Right Location: Focus on emerging neighborhoods with high rental demand.
2. Target Local Renters and Tourists: Cater your investment to either long-term tenants, students, or short-term holidaymakers.
3. Upgrade & Furnish Your Property: Modern, well-furnished homes command better rents and higher occupancy.
4. Stay Updated on Licensing Rules: Many cities have regulations for tourist rentals—stay compliant to avoid fines.
5. Partner With a Local Agent: Experienced agents can recommend high-yield areas and simplify property management.

Frequently Asked Questions

Which Spanish city has the highest rental yield in 2025?
Valencia and Murcia are leading in 2025, both offering average gross rental yields of 6%–7%.

Is it better to invest in short-term or long-term rentals in Spain?
Tourism cities like Malaga or Alicante are great for short-term rentals, while university towns (Valencia, Murcia) offer steady long-term rental demand.

How are rental yields calculated in Spain?
Rental yield = (Annual Rental Income / Property Purchase Price) × 100

Are property prices rising in Spain’s high-yield cities?
Yes, but the buying price remains more attractive compared to Madrid or Barcelona. Early entry into these markets offers the best returns.

Where to Find the Best Rental Yields in Spain

For investors seeking Spain’s cities with the highest rental yield in 2025, Valencia, Murcia, Malaga, Alicante, and Zaragoza stand out as the top choices. By focusing on these high-performing markets and implementing smart management, international and local investors can unlock excellent returns while benefitting from Spain’s dynamic property sector.

Ready to start your Spanish property investment journey? Connect with local experts to discover available properties in Spain’s highest-yield markets today!