Cheap property in Segovia and Ávila: UNESCO cities with 8-11% yields

Segovia and Ávila make an unusual pair in the Spanish property market: two medieval cities declared World Heritage Sites by UNESCO, linked to Madrid by train (Segovia is under 30 minutes away by AVE, Spain's high-speed train), with purchase prices among the lowest in Madrid's commuter belt and active rental demand from commuters who work in Madrid and choose to live in these cities for the difference in quality of life, price and peace and quiet.

Segovia: the Roman Aqueduct and the AVE

Segovia has 50,000 inhabitants and is 26 minutes from Madrid by AVE (the Madrid-Segovia-Valladolid line is one of the fastest in the world in terms of top speed). Its property prices are among the lowest in Madrid's area of influence: between €700 and €1,200/m² in standard neighbourhoods and between €1,200 and €2,000/m² in the historic centre (Casco Histórico). A 90 m² flat in a working-class neighbourhood of Segovia can be bought for €65,000-90,000 and let for €550-700/month, producing yields of 9% to 11%.

• The neighbourhoods with the best ratio: The northern area (El Salvador, San Lorenzo) and the working-class neighbourhoods in the south (La Victoria, the area around the AVE station) have the best prices. Prices of €700-1,000/m², yields of 9-11%.
• Commuter demand: The Segovia commuter works in Madrid, reaches Chamartín in 26 minutes and pays €700/month instead of the €1,200-1,500 that Madrid would cost. The monthly financial difference (€500-800/month) fully justifies the extra 26 minutes of travel.

Ávila: the most impressive walled city in Spain

Ávila has 57,000 inhabitants and has no AVE: its train to Madrid is a conventional one. Its prices are slightly lower than Segovia's (between €600 and €1,100/m²) and its commuter market is similar, although somewhat less developed. A 90 m² flat in Ávila's working-class neighbourhoods (Las Vacas, El Cordero, La Toledana) can be bought for €55,000-80,000 and let for €480-600/month, with yields of 9.5% to 12%.

• What sets Ávila apart from Segovia: Ávila has no AVE: its link with Madrid is by conventional train. Segovia's AVE connection runs along the Madrid-Valladolid corridor, stopping at Segovia-Guiomar (5 km from the centre, reached by shuttle bus). Ávila has the advantage of a railway station in the city centre.

ITP in Castile and León: 8% for both cities

Both Segovia and Ávila are in Castile and León (8% ITP, the Impuesto sobre Transmisiones Patrimoniales or property transfer tax). On an €80,000 purchase in Segovia, the ITP comes to €6,400. On a €65,000 purchase in Ávila: €5,200. Both costs are easily absorbed, given the yields these markets offer.

Cultural tourism as a complement

Segovia's Roman Aqueduct (one of the best preserved in the world), the Alcázar of Segovia and Ávila's medieval walls generate cultural tourism that, at weekends and over long bank-holiday weekends, can complement residential letting with holiday lets in the historic centre of both cities. VUT licences (vivienda de uso turístico, a licensed holiday let) are easier to obtain in Segovia and Ávila than in the big cities, although the holiday-let market is smaller and more seasonal.

Related resources: For the inventory of assets available in Segovia and Ávila, see opportunities in Segovia and opportunities in Ávila. For an analysis of the AVE commuter phenomenon, which also applies to Toledo (33 min) and Valladolid (55 min), the article on Toledo has the parallel analysis. For the context of Castile and León as a region to invest in, the article on Valladolid has the analysis of the Castilian capital.