It’s time to go mad for buy-to-lets in Madrid!
- Madrid property prices down 18.35% in a single year (Kyero.com)
- Rents up by 6.3% (Fotocasa)
- Madrid is most liquid market of Spain’s big cities (Tinsa)
Leading Spanish property portal Kyero.com, which lists more than 200,000 homes from 3,000 estate agents, has highlighted Madrid as one of Spain’s most exciting property markets for overseas property buyers.
Martin Dell, Kyero.com’s Director, explains,
“We’re seeing a really unique situation in Madrid right now, with a range of factors combining to make the city a particularly exciting prospect for those looking to purchase a holiday home that’s also an investment. Not only can they benefit from owning a second home for their own use in this vibrant and exciting city, but the prospects for renting it out are excellent.”
Madrid’s property market has been on its own particular rollercoaster ride of late. In 2015, Knight Frank’s Prime Global Cities Index placed Spain’s capital second in Europe for luxury home price growth. Tinsa went on to report in late 2015 that Madrid had the most liquid market of Spain’s five largest cities, with the average property taking just 6.1 months to sell (by way of comparison, it was 14.3 months in Valencia).
However, according to the latest Madrid market report from data.kyero.com, home values in Madrid are down 18.35% on the same time last year, having fallen to a median price of €445,000 in February 2016.
The fall in prices means that Madrid’s property market is offering a great deal more for the money than it was a year ago, and for buyers paying in sterling the ongoing strength of the pound against the euro paints an even more positive picture.
At the same time as prices have fallen in Madrid, rents have been on the rise, increasing by 6.3% in the year to November 2015, according to Fotocasa , and positioning Madrid as the second most expensive place to rent in the country.
Lowered prices and higher rents are a great combination for those looking for a holiday home that they can also rent out and Madrid is offering the perfect storm of these factors, making now the ideal time to purchase a buy-to-let.
Low prices also mean the potential for capital growth, a situation which David Beckham enjoyed when he sold his Madrid mansion in 2015, making a £1 million profit in the eight years since he bought it.
While Becks might have sold up and moved on, those buying property in Madrid still have the chance to rub shoulders with plenty of other celebrities, including clusters of Real Madrid players who have adopted the La Finca and La Moraleja areas of the city as their home turf. Research from Promora has shown that owning a modern and spacious home is top of the priority list so far as Real Madrid players are concerned, followed by a quiet and private location, a house with top security measures and space for a home gym.
Professional footballers’ budgets may be a little higher than for most of those buying a second home, but the wealth of property available in Madrid certainly provides plenty of choice, regardless of how much a buyer has available to spend. At least, it does for those buyers who are prepared to act fast and take advantage of the city’s lowered prices, before they start to rise again!
For further details on properties to buy and rent in Madrid and other parts of Spain, visit www.kyero.com. For the latest data on the state of the Spanish property market, visit https://data.kyero.com.