Real estate investments are booming and investing in Madrid is a great option for those who want to get the most out of their money. But what makes the capital of Spain so attractive?
What are the main reasons to invest in Madrid?
LOCATION
Madrid is one of the most visited cities in Europe both by tourists and businesspeople, and it’s where many important local and multinational companies have their headquarters. Therefore Madrid enjoys both a large influx of tourists as well as people seeking to live and work in the city to give their professional careers a boost.
ATTRACTIVE PRICES
The real estate market has been in a growth phase for a few years now, which means that you can still find properties at very attractive prices (especially compared to other European capitals) but with still good chances of their value appreciating in the future.
GREAT VARIETY OF PROPERTY TYPES
In Madrid there are properties for all tastes and pockets. You can find new-builds, second hand apartments or houses, properties that need a complete overhaul, luxury / prime real estate as well as more affordable dwellings.
GOOD RETURNS ON INVESTMENT
Undoubtedly, Madrid’s real estate offering has a wide variety of options for investment and purchase. The actual asset where one decides to invest will depend on one’s own personal investment goals and plans; but just as an example, commercial premises often offer greater yields, with ROIs of up to 8,9%.
The demand for rental apartments and houses in Madrid has grown so much that owners often find tenants in a matter of days. The most central areas of the city have always had the highest demand, but slowly the peripheral areas within the M-30 ring-road and beyond are also starting to see rising housing demand, leading to higher rental prices and therefore higher yields for the investor/owner.
What is the best option for investing?
A very good option is buying apartments to lease.
Madrid is a city with a large number of temporary dwellers: students, professionals who stay here for a few years, etc. Also, many younger people cannot or don’t want to buy (due to lack of savings, job insecurity, or simply lifestyle), and therefore look for rental apartments. All this generates a constant demand for rental properties, making the investment choice of buying a house or apartment to rent a very profitable one.
What are the best neighbourhoods in Madrid to invest in real estate?
One of the fundamental aspects to know before deciding where to invest is which areas offer the highest returns on investment.
Let’s see a few examples:
Salamanca Neighbourhood
It is one of the most exclusive and high-end neighbourhoods in Madrid, with its famous Golden Mile and aristocratic buildings. Its streets are full of restaurants and luxury boutiques. If you can buy a house in this area, you will be making a solid, safe investment. Prime real estate is less prone to devaluation in case of a downturn of the market, and rental properties are always in demand in this area.
Chamberí and Moncloa- Aravaca Neighbourhoods
These neighbourhoods are where most national and international students look for rental apartments. It is easy and profitable to rent out your property in this area.
La Latina neighbourhood
La Latina is a unique multicultural melting pot in the centre of the city and therefore it is an ideal place to buy and then rent to tourists or short term visitors.
Other neighbourhoods where you can get a good return on your investment are Tetuán or Vallecas, for their variety of buildings and high demand for less expensive rental apartments.
These are just a few examples of interesting areas to look at, if our goal is to invest in real estate in Madrid!
Why do you need a real estate buyer’s agent from PROPERTY BUYERS BY SOMRIE to help you get the most out of your real estate investments in Madrid?
- Hiring a real estate buyer’s agent can help you save thousands of euros.
- It saves you many hours of search and fruitless visits.
- It helps reduce stress and worries, because a buyer’s agent represents only you: the real estate investor.
- No vested interests, no hidden agendas, just someone fighting only for you!
Are you interested in investing in Madrid?
Contact Agnes Csomos, one of PROPERTY BUYERS BY SOMRIE’s agents in Madrid!
