Teruel and Toledo lead Spanish provinces in rental property profitability

Several Spanish provinces have emerged as highly profitable locations for residential real estate investment. According to data from Fotocasa as of September 2026, seven provinces offer rental returns of 8% or higher, with most located in the country's interior.

Toledo leads the national ranking with a 9.2% return, followed by Ciudad Real at 8.4%, Valencia at 8.3%, and Teruel at 8.1%. Other notable provinces include Segovia, Zamora, and Huelva, all reaching an 8% return. In the Aragon region, Zaragoza and Huesca also show strong performance with returns of 7.4% and 7.1%, respectively.

The high profitability in areas like Teruel is driven by relatively contained acquisition prices coupled with high rental demand, particularly in provincial capitals. This trend occurs amid a broader national increase in housing costs; rental prices rose 2.4% year-on-year in August, while the price of free housing increased by 12.5% in the second quarter of 2026.