At present, market analysis regarding the price of housing in the Madrid Autonomous Community, shows that the municipality of Torrejón de Ardoz and Villanueva de la Cañada are the most thriving of all. The 2016 edition of Salón Inmobiliario Internacional de Madrid (SIMA), has allowed us to gauge the mood of the Spanish real estate market and therefore, to draw important conclusions. We must highlight the analysis carried out by Tinsa, a society specialized in making valuations of the price of housing in the Madrid Autonomous Community. We will base our study of the situation concerning the real estate market in Madrid on these valuations. Hence, we will see which are the municipalities most in demand and which have undergone a fall in demand.
THE MUNICIPALITIES WHICH ARE THE MOST AND THE LEAST IN DEMAND
The facts and figures of the third term of 2016, carried out by Tinsa, in relation to real estate demand in the Community of Madrid, show that the most sought after municipalities are Torrejón de Ardoz (9,9%), Villanueva de la Cañada (9,6%), Leganés (9,2%) and Velilla de San Antonio (8,8%). These aforementioned percentages, in brackets, refer to the year-on-year development of each municipality. On the other hand, the ones which are least in demand are Guadarrama (-10,4%), San Agustín de Guadalix (-9,1%), Arroyomolinos (-6%) and Colmenar Viejo (-4,5%). All these municipalities have suffered the consequences of the housing bubble. Madrid accounts for 5,4%, a figure which is halfway between both extremes.
2016: A POSITIVE DEVELOPMENT IN REAL ESTATE
Tinsa shows that the year-on-year development of the Community of Madrid is 4,8% and a value of 1.711€ per square metre. This means that real estate has undergone a positive development in 2016. However, we must point out that the value in real estate continues being less than in 2007 which was the height of the housing bubble. At that time, housing in the Community of Madrid was nearly 45% more expensive than nowadays. If we compare prices per square metre we can say that the municipality of Pozuelo de Alarcón is the most expensive one with a price of 2.355€ per square metre. Majadahonda costs 2.335€ per square metre and the capital Madrid, 2.155€ per square metre. Tinsa estimates that in the Community of Madrid it takes around 8 months to sell a house. Whereas, in other parts of Spain it takes two more months. How will prices develop in the Community of Madrid? The development of the economy will be essential for the development of prices.
Picture 02: M. Peinado