The brick of Madrid is skyrocketing: rising prices in the luxury market
The capital, besides being the most populous city in Spain, is confirming its leadership also for other reasons. As far as the real estate market is concerned, what is happening is unbelievable. After years of crisis, in all economic sectors, Spain is finally re-appropriating its own identity, re-entering in the "pink" of the most influential European powers from all points of view.
In particular, this boom of optimism has invested a very particular segment, which often represents the actual level of "health" of a country's economy: that of luxury properties.
Although the average price of real estate has decreased, after the stall phase characterized by the financial crisis, from 2016 to 2017 there was an increase in prices equal to 8% more as an annual fixed rate. The volume of luxury properties sold, in fact, has increased by 50% in almost all the new units launched in the market in the last two years. Which means more foreign portfolios and new investors interested in this market range.
It should be remembered, however, that the recovery in the commercial sector was preparatory for that of the residential sector. The city of Madrid has evolved into a real business center, thanks to its financial power and the cradle of the main economic, technological, logistic and communication activities. According to the Spanish Ministry of the Economy, this is the right time to invest in luxury real estate, but also to open new start-ups.
Confirming the potential of this location is the exorbitant number of tourists: almost 7 million sailed the Madrid Barajas airport, 68% of which decided to buy a property right in the area of the capital.
Property prices, despite being on the rise, appear to be extremely competitive with respect to the Spanish and international markets. The cost of living in Madrid is very low (the city in fact occupies 46th place in the world rankings for quality of life).
Since 2016 in fact, particular attention has been placed in the central areas of the city, such as those in the Sol area, Embajadores and near the famous Plaza Mayor.
But where do the main buyers of Spanish bricks come from?
As for the local population, those interested in investing in a new home in Spain are mostly citizens of Barcelona, Malaga and Seville. While from abroad, 18% of buyers come from South America (Latin America to be exact), but there are also Germans, English and Russians.
The forecasts announce that the Spanish capital will become a staple for the luxury real estate market, considering that, despite the increase in prices, the sector does not seem to be experiencing a crisis.
In particular, this boom of optimism has invested a very particular segment, which often represents the actual level of "health" of a country's economy: that of luxury properties.
Although the average price of real estate has decreased, after the stall phase characterized by the financial crisis, from 2016 to 2017 there was an increase in prices equal to 8% more as an annual fixed rate. The volume of luxury properties sold, in fact, has increased by 50% in almost all the new units launched in the market in the last two years. Which means more foreign portfolios and new investors interested in this market range.
It should be remembered, however, that the recovery in the commercial sector was preparatory for that of the residential sector. The city of Madrid has evolved into a real business center, thanks to its financial power and the cradle of the main economic, technological, logistic and communication activities. According to the Spanish Ministry of the Economy, this is the right time to invest in luxury real estate, but also to open new start-ups.
Confirming the potential of this location is the exorbitant number of tourists: almost 7 million sailed the Madrid Barajas airport, 68% of which decided to buy a property right in the area of the capital.
Property prices, despite being on the rise, appear to be extremely competitive with respect to the Spanish and international markets. The cost of living in Madrid is very low (the city in fact occupies 46th place in the world rankings for quality of life).
Since 2016 in fact, particular attention has been placed in the central areas of the city, such as those in the Sol area, Embajadores and near the famous Plaza Mayor.
But where do the main buyers of Spanish bricks come from?
As for the local population, those interested in investing in a new home in Spain are mostly citizens of Barcelona, Malaga and Seville. While from abroad, 18% of buyers come from South America (Latin America to be exact), but there are also Germans, English and Russians.
The forecasts announce that the Spanish capital will become a staple for the luxury real estate market, considering that, despite the increase in prices, the sector does not seem to be experiencing a crisis.
