Barners predicts luxury housing price increase in Madrid

Barners predicts luxury housing price increase in Madrid

Despite the current sanitary crisis, the good economic prospects offered by the vaccine and the return of foreign capital forecast the recovery of the Spanish capital’s luxury real estate market, with a 3% price increase at the end of the year, according to Barners Madrid. Thus, the average luxury dwelling price will be at around 6.700 euro/sqm on second hand assets and at around 9.300 euros/sqm on newly built ones.

Within Madrid’s super-luxury segment, meaning, those properties estimated at above two million euro, the real estate company does not expect a significant price increase due to the solid economic situation shown by the demand, mainly international, for this type of assets.

The gradual opening of the borders as a consequence of the return to normal, points towards a change in terms of buyer’s profile. Whereas during the pandemic, national demand represented 80% of sales operations and had a more adjusted budget (between 500.000 and 1 million euro), the share represented by foreign buyers will increase in the second half of the year.

«Traditionally the city has significant demand from Americans and Asians, but particularly during the last few years, from Mexicans, Venezuelans and Colombians. The scenario that is presented once the third wave ends is in favour of the return of this foreign capital, since Madrid is an attractive city both to live and to invest in», highlighted Eduardo Crisenti, partner and director at Barnes Madrid.

The most in demand dwellings will be those with around 150 sqm, three bedrooms, two bathrooms and outdoor areas located in the districts of Salamanca, Chamberí, Retiro and Centro, the highest rated in the capital and with better connections and services.

«These buildings, generally second hand and refurbished, have the best locations and it is within this segment that buyers can find good negotiation and investment opportunities», explained Crisenti. The director pointed out that the average sales time for these houses is relatively short, between five and six months, «as long as the selling price is in line with the market».

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