(a) Housing return on investment

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Rentabilidad de la vivienda

Housing ROI

Interpretation and observations

By looking at the housing appreciation, i.e. whether if houses increase or decrease in value year over year. We can distinguish several outstanding periods:

(b) Average rental return

Rental source: Idealista

Rentabilidad alquiler

Rentabilidad alquiler

Interpretation and observations

The charts from above show the ratio between the purchase price and the rental price (both in %; and in time, years). In essence, it's an indicator similar to the price-to-earnings ratio (P/E) used in the stock market analysis. It can be interpreted as follows:

Data sources

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