It is not an easy task to look for housing in Madrid whether you wish to purchase or to rent because, at present, in both cases there is a very high demand. Many people are aware of the fact that buying property in the capital of Spain is an extremely profitable operation. Madrid will never go out of fashion and hence, well located property will always be a value in the short, medium and long term. As evidence of this, we can cite the good times that housing sales are undergoing in Madrid. In some areas, prices have even reached those of 2007. Everything seems to indicate that these prices will soon rise even more. Unquestionably, investors regard the Madrid housing market as very appealing. Moreover, the signs are there because in many areas of the city housing is sold or rented at a very fast pace. At times, the offer of housing on sale lasts only for a few days and if the house is for rent then the notice will maybe last for less than an hour. Are you thinking about buying or renting a flat in Madrid? If this is the case, then it is convenient for you to know the current situation of the real estate market in order to consider your options and the factors you should take into account.
THE AREAS IN MADRID WITH THE GREATEST OFFER
The initial difficulty that the investor will encounter when looking for housing in Madrid, is first and foremost the current housing shortage. Some time ago, we wrote in this blog about the great problem that Madrid faces due to its lack of building land. This fact directly affects the lack of supply not only regarding purchasing but also renting. In some areas of Madrid it is not easy to find adequate housing and this leads to an even greater demand. A real estate portal carried out a market research in order to know which areas in Madrid have the greatest housing offer. It turned out that the areas were Barrio de Salamanca, Puente de Vallecas, Chamartín and Carabanchel. They are very different markets because in Barrio de Salamanca and Chamartín the housing offer is aimed at people with an important purchasing power. The housing prices there are around 5.000€ per square metre and 4.500€ per square metre respectively. On the other hand, in Puente de Vallecas and Carabanchel the offer is aimed at people with a much lower budget. Housing prices there are around 1.600€ per square metre and 1.900€ per square metre respectively. We must point out that concerning renting, the situation is completely different. The greatest renting offer is in Distrito Centro, Barrio de Salamanca, Chamartín and Chamberí, all of which are the most demanded areas in Madrid. In Distrito Centro, the monthly renting price is 13,59€ per square metre, in Barrio de Salamanca it is 16,39€ per square metre, in Chamatín 14,67€ per square metre and in Chamberí 15,11€ per square metre. It so happens that tourist lodgings in Madrid have considerably reduced the renting offer, hence, leading to a rise in market prices.
SECOND HAND HOUSING GAINS STRENGTH
The second hand housing market in Madrid is very powerful, and the same can be said about the rest of Spain. As we have already mentioned, hardly any new housing is built in Madrid. Thus, when an offer appears, it lasts for a short time in the market. At present, it is estimated that there is an offer of two new houses per one thousand Madrileños. This is half the amount that experts regard as adequate, as the numbers should be four houses per one thousand people. This fact leads to the strength of second hand housing which has become the main real estate motor. As for renting, the second hand housing offer is much more numerous, especially in the centre of the city where these flats practically monopolize the market.
Picture 02: Luis García