Commercial premises rented as homes in Spain: 300 euros, no contract
Ground-floor commercial units in Spain are being rented as homes for 280-350 euros, yielding 9.5%, with 80% of former shops already converted into housing.
English · Original discussion in Spanish · Published
Commercial premises rented as homes in Spain: 300 euros, no contract
In a Spanish neighbourhood, a 40-square-metre commercial unit bought in 2002 for 15,000 euros is now rented out for 300 euros a month. The contract says it is a storage space. The tenant, however, lives there.
The curious thing about the market is that the sale price has barely moved: two similar units are on sale for 38,000 and 39,000 euros. Do the maths, and the gross annual return on the deal is around 9.5%, more than many regulated rentals. In Mallorca the same phenomenon occurs with 100-square-metre offices costing 150,000-180,000 euros and renting for 800.
It is not all about numbers. Critics point out that most of these spaces lack natural light, that the door opens straight onto the street, and that the residential use is never declared. In Barcelona, the trend has gone further: commercial units in non-retail areas used as illegal housing, and now basements and storage rooms with no ventilation for 400 euros a month. A sign that the next step will not be a shop unit, it will be a drain.
The startling figure: in some neighbourhoods, 80% of the old neighbourhood shops —grocery stores, hardware stores, general goods shops— are already housing. The city is being redrawn by urgency, not by planning. Landlords collect the rent, tenants sleep behind the roller shutter, and the authorities look the other way.
In a Spanish neighbourhood, a 40-square-metre commercial unit bought in 2002 for 15,000 euros is now rented out for 300 euros a month. The contract says it is a storage space. The tenant, however, lives there.
The curious thing about the market is that the sale price has barely moved: two similar units are on sale for 38,000 and 39,000 euros. Do the maths, and the gross annual return on the deal is around 9.5%, more than many regulated rentals. In Mallorca the same phenomenon occurs with 100-square-metre offices costing 150,000-180,000 euros and renting for 800.
It is not all about numbers. Critics point out that most of these spaces lack natural light, that the door opens straight onto the street, and that the residential use is never declared. In Barcelona, the trend has gone further: commercial units in non-retail areas used as illegal housing, and now basements and storage rooms with no ventilation for 400 euros a month. A sign that the next step will not be a shop unit, it will be a drain.
The startling figure: in some neighbourhoods, 80% of the old neighbourhood shops —grocery stores, hardware stores, general goods shops— are already housing. The city is being redrawn by urgency, not by planning. Landlords collect the rent, tenants sleep behind the roller shutter, and the authorities look the other way.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (44 replies).
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