The property finder service, The Spanish Brick, explains how Madrid is becoming a popular hotspot for UK buyers and investors.
Despite the fact that Spain has been of interest due to its coast and beaches, the main capital, just in the middle of the country, Madrid, is a city that, in recent years, has become a hot spot for UK and overseas buyers and investors.
The main reason is definitely the property crisis in Spain and the fact that prices have dropped in Madrid by 50% since 2007 according to experts. Living in Spain does not mean living by the beach anymore. New destinations in the cities and countryside are being discovered by more and more UK buyers and investors.
According to the Madrid property finders The Spanish Brick, the profile of UK buyers and investors in Madrid are:
Buyers who like Spanish lifestyle, have been in Madrid more than once, and want to invest (Buy To Let), looking forward to enjoying the property when it is available.
Buyers who have family members studying or working in Madrid, so they can stay in a property that they own, which allows them to travel to Madrid and avoid renting accommodation.
Buyers who love Madrid and prefer to own an apartment to enjoy for very short periods per year, but who are looking forward to moving to Madrid in the future.
Investors who, with calculator in hand, want to take advantage of the current market and buy cheap in order to generate some rental income and generate equity in future years after reselling the apartment.
These are currently the most wanted districts:
This is the most expensive district of Madrid. Madrid people tend to see Salamanca as the posh area. It has services and excellent cafes and expensive "boutiques".
The average asking price is less than €4,600 euros per sqm. But it varies on the Salamanca market. Whereas in the prime area, Recoletos, prices can easily reach €7,000 to €9,000 per square metre for an apartment with balconies, other areas of interest such as Goya or Lista can offer the same apartments for around €5,500/sqm.
Chamberi has become an alternative district for those who love the real feeling of being in Madrid but want to enjoy time out in Madrid. The surroundings on Plaza Olavide offers an atmosphere of more informal tapas bars than the Salamanca district. There are not many tourists around, so you have the chance to enjoy the real Madrid lifestyle.
Properties tend to be high in price also. On average, the asking price is about €4,100 per sqm.
The difficulty of buying in Salamanca or Chamberi is finding apartments with big balconies. In fact, if there is a balcony, they tend to be called "miradores" (viewing points). For some reason, in the 70s, many owners enlarged the property areas by covering the balconies, which is why there are not many properties with big balconies.
This is the city center area where the tourists tend to be concentrated: around the imperial buildings, the National palace, the National Museum and entertainment. There is a little of everything nearby the Sol underground station (Puerta del Sol). Menus for tourists and attractions on the streets are everywhere.
Property asking prices are slightly below €3,800 per square metre and there are plenty of hostals for tourists.
The price diversity is quite large. You can find a 50 sqm apartment for €160k or a 200 sqm property for € 2.2m. How well-kept the traditional features of the properties are, plus good views (maybe of the Palace), make the prices skyrocket.
This is the trendy area in Madrid. Well-known by locals because of the gay and lesbian movement, Chueca is now an expensive place to invest for two reasons: it is a fashionable area with high demand and it is also in the city center, bordering the Palacio area. Average asking prices are around €4,500 per sqm.
These are the most wanted areas for investors right now according to the volume of demands that the Spanish Brick has had from UK buyers in the last 18 months. Nevertheless, as the market prices are starting to increase in certain "micro-markets," new areas such as Retiro, Malasaña or Lavapies are more in demand by overseas investors and expats in Madrid.