Chamberí · Madrid
Rental yield in Vallehermoso
Vallehermoso is an expensive area for Madrid, with a low rental yield and a Total Return in line with the city average. Here is what a typical flat in Vallehermoso costs to buy and rent, and the Total Return (IRR) it delivers, compared with Chamberí and the rest of Madrid.
Sale price
6,789
€/m² · second-hand homes
Rent
22.5
€/m² per month · market rate
Gross yield
4.0%
annual rent ÷ price
Total Return
9.9%
10-year IRR · typical flat
Appreciation
+6.5%
a year, 10-15 year history
Cash flow
-€716
per month, year 1, after tax
What the data says
Vallehermoso is a neighbourhood in the Chamberí district of Madrid. The reference sale price is €6,789/m², based on the 2025 registry statistics (Madrid City Council): 41% above the Madrid median (€4,808/m²) and 13% below its district median (€7,762/m²). It ranks 28 of 130 neighbourhoods in Madrid by price and 6 of 6 within Chamberí.
The achievable market rent is around €22.5/m² per month (the neighbourhood's own figure; idealista asking rents adjusted to achievable rent): about €2,025 a month for a typical 90 m² flat, with no legal cap. The gross yield (annual rent ÷ price) comes to 4.0%, 0.7 points below the city median (4.7%): rank 93 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 9.9%, in line with the Madrid median (9.8%). It takes about €222,681 of cash (deposit, taxes and costs), and first-year cash flow after tax is -€716 a month.
Asking prices in the Chamberí district have grown by an average of 6.5% a year over the last 10 and 15 years (idealista, December 2025), capped at the 6.5% we apply in the IRR. Historical, not a forecast: it is the appreciation the modelled sale assumes.
A typical flat in Vallehermoso
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
- 90 m²
- Purchase price
- €611,010
- Monthly rent
- €2,025
- Cash needed · deposit + transfer tax + costs
- €222,681
- Monthly cash flow (year 1)
- -€716
- Total Return (IRR)
- 9.9%
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 Chamberí, ranked by gross yield
| Area | €/m² | Rent €/m² | Gross | IRR |
|---|---|---|---|---|
| Vallehermoso | 6,789 | 22.5 | 4.0% | 9.9% |
| Gaztambide | 7,412 | 23.8 | 3.9% | 9.7% |
| Arapiles | 7,595 | 23.8 | 3.8% | 9.6% |
| Trafalgar | 8,595 | 26.9 | 3.8% | 9.6% |
| Ríos Rosas | 7,928 | 24.7 | 3.7% | 9.5% |
| Almagro | 10,762 | 27.5 | 3.1% | 8.5% |
Frequently asked questions
How much does a square metre cost in Vallehermoso?
€6,789/m² on average, based on the 2025 registry statistics (Madrid City Council). A typical 90 m² flat costs about €611,010, 41% above the Madrid median.
How much is rent in Vallehermoso?
Around €22.5/m² per month at market rates: €2,025 a month for a 90 m² flat, with no legal cap.
Is Vallehermoso a good buy-to-let investment?
The gross yield is 4.0% (Madrid median: 4.7%). With a 70% mortgage and a sale after 10 years, the estimated Total Return (IRR) is 9.9% against a city median of 9.8%. It depends on your financing and tax residency: with your own profile the number can change.
Is Vallehermoso 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 Vallehermoso?
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 · neighbourhood rent adjusted to achievable rent (×0,95)
- Appreciation: average of the 10- and 15-year rates of the area's asking price — historical, not a forecast