Authored by the expert who managed and guided the team behind the Nicaragua Property Pack
Yes, the analysis of Granada's property market is included in our pack
Granada, Nicaragua offers rental properties ranging from €590 monthly for studios to €1,200 for larger family homes, with rental yields averaging 4.1% across different property types.
The Granada rental market shows strong performance with tight supply conditions and growing demand from both local residents and international renters. Short-term rental properties generate significantly higher returns than traditional long-term rentals, particularly in the historic center areas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nicaragua, based on reliable facts and data, not opinions or rumors.
Granada's rental market offers studios at €590/month, one-bedrooms at €700/month, and larger properties up to €1,200/month, with the historic center commanding premium rates.
Short-term rentals generate 30-60% higher returns than long-term rentals, while total monthly costs including utilities and fees add €130-€220 to base rent prices.
| Property Type | Average Monthly Rent | Rental Yield | Average Purchase Price |
|---|---|---|---|
| Studio | €590 | 5.06% | €140,000 |
| 1-bedroom | €700 | 4.31% | €195,000 |
| 2-bedroom | €850 | 4.56% | €223,450 |
| 3-bedroom | €950 | 3.69% | €309,000 |
| 4+ bedrooms | €1,200 | 3.95% | €365,000 |
What's the average rent in Granada right now for different property types?
As of September 2025, Granada's rental market shows clear pricing tiers across different property types.
Studio apartments rent for an average of €590 per month and offer the highest rental yield at 5.06%. One-bedroom properties command €700 monthly with a 4.31% yield, while two-bedroom units average €850 per month and deliver a 4.56% return.
Three-bedroom properties rent for €950 monthly with a 3.69% yield, and larger four-bedroom or family homes reach €1,200 per month with a 3.95% rental yield. The market-wide average rent sits at €900 per month across all property types.
The average rental rate per square meter city-wide stands at €10.69 monthly, though this varies significantly by neighborhood and property quality.
How do rental rates vary between Granada's main neighborhoods?
Granada's rental market shows significant variation between neighborhoods, with the historic center commanding premium rates.
Centro area leads with €11.94 per square meter monthly, reflecting its central location and high demand from tourists and expats. The Albaicín neighborhood, known for its historic charm and tourist appeal, commands above-average rates though specific figures vary by property.
Realejo attracts students and expats with its vibrant atmosphere and typically charges around average market rates. The Genil area offers more affordable options at €9.19 per square meter, making it attractive to budget-conscious renters.
Zaidín represents the most budget-friendly option with below-average rates, appealing primarily to local residents seeking authentic neighborhood living.
What's the rental price difference per square meter across different areas?
| Neighborhood | Rent per m² | Sale Price per m² | Market Position |
|---|---|---|---|
| Centro | €11.94 | €2,848 | Premium, highest demand |
| Albaicín | ~€10.69 (average) | Above average | Historic, tourist-focused |
| Realejo | ~€10.69 (average) | Above average | Student and expat appeal |
| Genil | €9.19 | Moderate | Affordable residential |
| Zaidín | Below €9.19 | €1,392 | Budget-friendly local area |
What's the typical total monthly cost including all fees and expenses?
Beyond base rent, tenants face additional monthly expenses that significantly impact the total housing cost.
Utilities including electricity, water, and internet typically add €100-€150 monthly to the base rent. Community or property management fees range from €20-€50 per month depending on building amenities and services.
Local taxes average €16 monthly, while rental insurance costs €10-€20 per month for adequate coverage. These additional expenses total €130-€220 monthly on top of base rent.
Larger properties tend toward the higher end of this range due to increased utility consumption and higher management fees. It's something we develop in our Nicaragua property pack.
Don't lose money on your property in Granada
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do mortgage payments compare to rental income for property owners?
Property owners financing their purchases face monthly costs that often exceed rental income in the short term.
A typical mortgage requires 20% down payment with 80% financing over 25 years at 3.5% APR. For a €223,450 two-bedroom property, the down payment reaches €44,690 with a mortgage of €178,760.
Monthly mortgage payments approximate €892, plus taxes, insurance, and fees totaling around €1,050 monthly. The same property generates €850-€950 in monthly rental income before costs.
This creates a negative cash flow situation initially, but property appreciation and rent increases over time can improve the investment return. Gross rental yields typically range 4-5% annually across Granada's market.
How do short-term rental rates compare to long-term rentals?
Short-term rentals significantly outperform long-term rentals in Granada's market, particularly in tourist-focused areas.
Short-term properties average €89 per night with 66% occupancy, generating approximately €1,695 monthly compared to €850-€950 for equivalent long-term two-bedroom rentals. Annual revenue from short-term rentals reaches around €20,000 versus €10,200 for traditional long-term arrangements.
April represents the peak profit month for short-term rentals due to increased tourist activity. However, short-term rentals incur higher management costs, cleaning fees, and more frequent turnover expenses.
The revenue premium ranges 30-60% higher than traditional rentals for well-positioned properties, but requires more active management and carries higher operational complexity.
What are specific examples of current rental prices?
Current Granada rental listings demonstrate the market's pricing structure across different property types and locations.
1. Studio apartments in the city center rent for €600 monthly with utilities typically separate2. One-bedroom properties near campus areas command €700 monthly including heating and air conditioning3. Two-bedroom downtown units range €850-€950 monthly for modern, centrally-located properties4. Three-bedroom properties designed for students rent €950-€1,100 monthly with spacious shared areas5. Four-bedroom family apartments reach €1,200-€1,400 monthly, often featuring terraces or prime central locationsFurnished properties typically command 10-15% premium pricing compared to unfurnished alternatives across all categories.
What types of renters are attracted to each property type and neighborhood?
Granada's rental market serves distinct renter demographics based on property type and location.
Centro, Albaicín, and Realejo neighborhoods primarily attract students, young professionals, and expats seeking cultural immersion and convenience. These areas generate higher yields on smaller units due to premium location demand.
Genil, Zaidín, and Norte areas appeal to budget-conscious locals and small families prioritizing affordability and authentic local living. These neighborhoods attract long-term renters seeking stable housing situations.
Larger family homes serve two primary markets: local families requiring space and groups of international students choosing co-living arrangements. Short-term rental properties predominantly serve tourists, especially in central and historic districts.
We analyze these tenant patterns extensively in our Nicaragua property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nicaragua versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the current vacancy rates across different areas and property types?
Granada's rental market demonstrates tight supply conditions with low vacancy rates across most segments.
Overall vacancy rates average 4-6% city-wide, with lower rates in Centro and tourist-focused areas due to consistent demand from visitors and expats. Historic neighborhoods maintain particularly low vacancy due to limited supply and high desirability.
The available long-term rental inventory has dropped over 56% since 2020, creating significant supply constraints. This shortage drives continued upward pressure on rental rates across all property types.
Residential neighborhoods like Genil and Zaidín show slightly higher vacancy rates but still remain below regional averages due to affordable pricing attracting local demand.
What are the rental yields by neighborhood and which areas perform best?
Rental yields vary significantly across Granada's neighborhoods, with tourist-focused areas delivering superior returns.
| Area | Average Yield | Property Type | Performance Driver |
|---|---|---|---|
| Centro (short-term) | 6-11% | All types | Tourist demand |
| Albaicín (short-term) | 6-11% | Studios, 1-2 bed | Historic appeal |
| City-wide average | 4.1% | All types | Mixed demand |
| Residential areas | 2.66-4.5% | Larger properties | Local demand |
| Premium locations | Up to 11.66% | Optimized units | Strategic positioning |
How have rents and yields changed over recent years and what's the forecast?
Granada's rental market has experienced substantial growth over the past five years with continued expansion expected.
Rental rates have increased 30% over the past five years, with the sharpest increases occurring since 2021. Year-over-year growth reached 8-17% in recent periods as demand surged while supply remained constrained.
Rental yields have remained stable or slightly increased as rent growth outpaced property price appreciation in 2024-2025. This trend favors investors as income generation improves relative to acquisition costs.
One-year forecast projects 5-7% rent growth continuing through 2026. Five-year outlook anticipates steady growth driven by tourism recovery and international interest. Ten-year projections depend heavily on tourism policy and housing regulation changes.
Our detailed market forecasts are included in our Nicaragua property pack.
How does Granada compare to other similar-sized cities in the region?
Granada's rental market offers competitive advantages compared to similar-sized cities across Spain and Southern Europe.
Rental rates and property prices in Granada remain significantly below major Spanish cities like Málaga, Seville, Valencia, and Barcelona. This pricing advantage attracts both renters seeking affordability and investors pursuing higher yields.
Rental yields in Granada (4-5%) compete favorably among Spain's midsized cities and compare well to similar markets in Southern Europe including Coimbra, Porto, Bologna, and Montpellier.
Granada's unique combination of tourism appeal, student population, and expat community creates stronger demand for both short-term and long-term rentals compared to purely residential markets of similar size.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Granada's rental market presents attractive opportunities for both investors and renters, with strong yields in tourist areas and affordable options in residential neighborhoods.
The tight supply situation and growing demand from diverse renter segments support continued rental rate growth and stable investment returns across the market.