Madrid, the capital of Spain and the country’s economic, financial, administrative and political centre, is a buzzing and sophisticated city that offers a modern, efficient infrastructure, along with a large cultural and artistic heritage and centuries of fascinating history
Widely recognised as a Top 15 global city, the population is roughly 3.3 million. The Madrid metropolitan area’s entire population is about 6.5 million. It is the third-largest city in the European Union, after London and Berlin; amongst metropolitan areas it is also third, after London and Paris.
The city’s influence in media, fashion, science, culture, politics and entertainment further contributes to its position as a leading world centre.
Centrally located, Madrid is a natural hub and a reflection of all the different areas of Spain. The industrial North, the passionate South, the laid-back Mediterranean and the determination of the mountainous parts of the country all come together in the capital. Traditional tapas restaurants sit comfortably next to avant-garde art galleries, whilst flamenco and classic ballet are equally appreciated. Madrileños thrive in the diversity of the city and have truly mastered the art of enjoying life.
As financial institutions have started to approve more mortgage applications at historically low interest rates, buyers from all over Spain are showing an increased interest in properties for sale in Madrid, whether it is purely for investment reasons, work, or as a second home. The local high-end buyers have been joined by a growing number of investors from Northern Europe, Latin America, the United States, the Middle East and Asia.
Aside from value for money, foreign property buyers are attracted to Madrid real estate for the excellent quality of life and the safe long-term investment outlook. Most overseas buyers are purchasing their Madrid properties with the intention of using them as a primary residence after relocation to the Spanish capital. A smaller but increasing number of buyers are looking for a luxurious second home, or alternatively, buying a property in Madrid may be a long-term investment decision. Yet another reason amongst foreigners is to take advantage of the Golden Visa scheme, where non-EU residents can purchase prime market property to receive residency rights.
This vibrant capital city offers a diverse range of properties, from traditional and modern city apartments in districts such as Salamanca, Chamberí, Justicia and Cortes to large family homes in the posh outskirts of the city, including the exclusive neighbourhoods of Aravaca, La Moraleja and Pozuelo with its wide choice of international schools.
The recent report Emerging Trends in Real Estate Europe 2016, prepared by PwC and the Urban Land Institute, forecasts good real estate prospects for Madrid. The report singles out Madrid as one of the five leading cities for investment prospects in 2016. Investors are looking to Madrid to take advantage of the current low (2.5%) vacancy rate.
Also, it is an under-appreciated market that has only been exposed to international buyers the last few years, while many overseas buyers and investors have yet to discover the opportunities offered by such an exceptional city. Amongst those in the know, it is widely believed that real estate prices in Madrid do not reflect the true value. It is anticipated that over the coming years, prices will rise to the levels of other comparable European cities.
True to its Spanish heritage, Madrid is home to many of the country’s most important landmarks. It also maintains an open mind about new trends and growing cosmopolitan influences.
Offering an exceptional standard of living and a positive market outlook, Madrid will continue to be a rewarding place to invest for both the national and international investors, into the foreseeable future.