Fotocasa reports a decline in Canary Islands housing profitability to 6.3% in 2023

Fotocasa's 2023 report on Spanish housing profitability highlights a significant trend of declining annual yields in the Canary Islands, dropping to 6.3% (a 0.5% decrease from 2022), reflecting broader, regionally varied trends in Spain's housing market.

The latest report titled ‘The profitability of housing in Spain in 2023’ by the real estate portal Fotocasa has detailed an interesting trend in the housing market for the year 2023. It revealed a notable decline in the annual profitability of housing in the Canary Islands, which fell to 6.3%, a decrease of 0.5% from 6.8% in 2022. This decrease in profitability is seen as part of a broader trend in the Spanish housing market, albeit with regional variations.

Across Spain, the report noted a marginal decline in housing profitability, down to 6.4% in 2023 from 6.5% the previous year. Despite this overall decrease, the rental market has experienced an upswing in prices, which Fotocasa’s Director of Research, María Matos, suggests helps maintain a positive level of return for those investing in properties to rent out. This rise in rental prices is a critical factor in understanding the dynamics of the housing market in 2023.

The report provides an extensive analysis of regional differences in housing profitability. It points out that in twelve Spanish communities, the profitability of housing investments has increased in 2023. Notably, communities like Comunitat Valenciana (7.9%), Region of Murcia (7.4%), and Cantabria (7.3%) have surpassed the national average profitability of 6.4%. Other communities like Catalonia, Asturias, and Navarra also feature higher profitability rates than the national average.

Fotocasa reports a decline in Canary Islands housing profitability to 6.3% in 2023

On the other hand, several regions report profitability figures below the Spanish average. These include Aragon, Extremadura, Castile-La Mancha, Andalusia, Galicia, the Basque Country, La Rioja, Madrid, and the Balearic Islands. The Canary Islands, specifically, align with this lower profitability trend, standing at 6.3%, identical to regions like Aragon and Extremadura.

The study further delves into city-level analysis, highlighting Gandía as the most profitable city in Spain with a remarkable profitability rate exceeding 10%. Other cities like Laredo, La Manga del Mar Menor, Lucena, L’Hospitalet de Llobregat, and La Línea de la Concepción also showcase high profitability rates. In contrast, cities like Eivissa-Ibiza, Getxo, Donostia-San Sebastián, Sitges, and Benahavís fall at the lower end of the profitability spectrum, each registering rates below 5%.


Fotocasa’s report extends its detailed analysis to districts within major cities like Madrid and Barcelona. In Madrid, the district of Villaverde has shown a significant increase in profitability over the past decade, now standing at 8.9%. Barcelona’s Nou Barris district has also seen a considerable increase in profitability, rising from 5.2% to 7.7% in ten years.

María Matos, in her analysis, emphasises the resilience and appeal of the real estate sector as a safe and profitable investment avenue, especially during times of economic uncertainty. The report suggests that despite fluctuations, the housing market continues to be a primary focus for investment, offering relatively high returns compared to other financial products.

This comprehensive report by Fotocasa thus offers a detailed insight into the evolving landscape of the housing market in Spain, underlining the regional disparities in profitability and the continued attractiveness of real estate as an investment option.

Scroll to Top