Villaverde · Madrid
Rental yield in Butarque
Butarque is an affordable area for Madrid, with a low rental yield and a Total Return below the city average. Here is what a typical flat in Butarque costs to buy and rent, and the Total Return (IRR) it delivers, compared with Villaverde and the rest of Madrid.
Sale price
3,237
€/m² · second-hand homes
Rent
10.2
€/m² per month · market rate
Gross yield
3.8%
annual rent ÷ price
Total Return
6.4%
10-year IRR · typical flat
Appreciation
+4.4%
a year, 10-15 year history
Cash flow
-€406
per month, year 1, after tax
What the data says
Butarque is a neighbourhood in the Villaverde district of Madrid. The reference sale price is €3,237/m², based on the 2025 registry statistics (Madrid City Council): 33% below the Madrid median (€4,808/m²) and 12% above its district median (€2,898/m²). It ranks 110 of 130 neighbourhoods in Madrid by price and 1 of 5 within Villaverde.
The achievable market rent is around €10.2/m² per month (the neighbourhood's own figure; idealista asking rents adjusted to achievable rent): about €867 a month for a typical 85 m² flat, with no legal cap. The gross yield (annual rent ÷ price) comes to 3.8%, 0.9 points below the city median (4.7%): rank 105 of 130 by gross yield.
With a 70% mortgage at 3.80% over 25 years and a sale after 10 years, the estimated Total Return (IRR) for that typical flat is 6.4%, below the Madrid median (9.8%). It takes about €101,265 of cash (deposit, taxes and costs), and first-year cash flow after tax is -€406 a month.
Asking prices in the Villaverde district have grown by an average of 4.4% a year over the last 10 and 15 years (idealista, December 2025). Historical, not a forecast: it is the appreciation the modelled sale assumes.
A typical flat in Butarque
The same standard assumptions as the CasaROI map: change the mortgage, term or tax profile in your account and the Total Return is recalculated for your case.
- Size
- 85 m²
- Purchase price
- €275,145
- Monthly rent
- €867
- Cash needed · deposit + transfer tax + costs
- €101,265
- Monthly cash flow (year 1)
- -€406
- Total Return (IRR)
- 6.4%
Assumptions: 70% mortgage over 25 years at 3.80%, sale after 10 years, Spanish tax resident at a 37% marginal rate, no renovation.
Neighbourhoods in Villaverde, ranked by gross yield
| Area | €/m² | Rent €/m² | Gross | IRR |
|---|---|---|---|---|
| San Cristóbal | 1,942 | 13.9 | 8.6% | 13.2% |
| Villaverde Alto, Casco Histórico de Villaverde | 2,901 | 16.7 | 6.9% | 11.3% |
| Los Rosales | 2,812 | 15.9 | 6.8% | 11.0% |
| Ángeles | 2,898 | 13.7 | 5.7% | 9.5% |
| Butarque | 3,237 | 10.2 | 3.8% | 6.4% |
Frequently asked questions
How much does a square metre cost in Butarque?
€3,237/m² on average, based on the 2025 registry statistics (Madrid City Council). A typical 85 m² flat costs about €275,145, 33% below the Madrid median.
How much is rent in Butarque?
Around €10.2/m² per month at market rates: €867 a month for a 85 m² flat, with no legal cap.
Is Butarque a good buy-to-let investment?
The gross yield is 3.8% (Madrid median: 4.7%). With a 70% mortgage and a sale after 10 years, the estimated Total Return (IRR) is 6.4% against a city median of 9.8%. It depends on your financing and tax residency: with your own profile the number can change.
Is Butarque in a stressed rental zone?
No. Madrid is not a declared stressed rental zone: rents are set by the market, with no legal cap.
Buying in Butarque?
Paste the listing and we tell you whether it holds up at that price: legal rent, taxes, red flags and a verdict.
Sources and method
- Sale: Estadística Registral · Ayuntamiento de Madrid (precio declarado, neighbourhood) · MITMA city anchor 4212 €/m² (2024)
- Rent: idealista · median of neighbourhood listings · adjusted to achievable (×0,95)
- Appreciation: average of the 10- and 15-year rates of the area's asking price — historical, not a forecast