Recommendations to tenants
Real estate prices in Madrid are growing by about 10% annually, which opens up good investment opportunities for foreign buyers. "The main reason for the price increase is the steady increase in prices – this is a significant increase in demand with a lack of supply," says Irene Martinez of CB Richard Ellis agency (CBRE)."
If you intend to lease your property to tourists or businessmen, then you need to consider only the city center. Prices are high here - the cost of 1 sq. m. The cost in new complexes or renovated buildings is approximately 7,200 euros, and in the secondary market - 4800-6000 euros. But the investor can be sure that he will never lose his money, and the demand for rent will always be high.
CBRE offers foreign buyers several interesting investment projects under construction in the very center of the city. One of them was named Hermosilla XIII - a reconstruction of a traditional-style building located in an elegant and highly sought-after area of Salamanca. All 20 apartments have two bedrooms and two bathrooms, their cost starts from 780,000 euros.
Those who prefer modern architecture can be advised to pay attention to the Ourense 48 project. This is also a reconstruction, but the building was built relatively recently, in the 1980s. Soon it will turn into an upscale residential complex with 35 apartments with one, two and three bedrooms. The complex has its own swimming pool, and the central area in which it is located has a well-developed infrastructure. Apartment prices start from 326,000 euros.
In all major cities of the world, there are neighborhoods where foreigners traditionally settle. In Moscow, these are the Patriarchal Ponds and the surroundings of Mosfilmovskaya Street. In Madrid, there is the Chamberi district, where most diplomatic missions are located. Petrus Building, a modern residential complex with a neoclassical facade, is one of the most interesting Madrid proposals in CBRE's portfolio. The complex has 24 apartments with two and three bedrooms, their cost starts from 587,000 euros.
Victoria Carriles from the Promora Inmobiliaria agency agrees that the best places to buy are the Salamanca and Chamberi districts, and also adds the Retiro district to this list. Recently renovated one-bedroom apartment (piso) located in Retiro, Promora Inmobiliaria sells for 430,000 euros.
However, those who are limited in funds will inevitably have to look for real estate away from the city center. "If your budget does not allow you to spend a lot of money, then a good option would be to buy in areas such as Villaverde, Vallecas or Usera, where the cost is 1 sq. m. The price fluctuates around 3,000 euros," says Victoria Carriles.
A house as a luxury item
For those who are ready to operate with a budget of millions of dollars and want to purchase not an ordinary real estate object, but a house that they could be proud of, there is a real expanse in Madrid. There are many offers for every taste.
Here, for example, is a chic duplex in the center of the Spanish capital, which is offered by Promora Inmobiliaria. There are four bedrooms and three bathrooms, a maid's room, as well as a swimming pool and a garden shared by the entire complex. The word "shared" should not confuse you, because there are only three such apartments in the complex! Their price is 3 million euros.
Here is another duplex – a two-storey one, located in the prestigious El Viso district – quiet, with good transport interchanges, far from tourist "trails". The well-furnished apartments have four bedrooms, three reception rooms, as well as a maid's room, a library and a Turkish bath. The duplex is for sale by Knight Frank for 2.1 million euros.
For those looking for something less urbanized, Victoria Carriles offers for sale two houses in Puerto de Hierro, a fashionable area located about 3 km from the city center. The first of them is a newly built four–storey mansion with five bedrooms, three bathrooms, two terraces, a garden and a swimming pool, which is on sale for 1.05 million euros. The other is a renovated chalet–style house with three bedrooms, a large living room with fireplace, library, garage and garden. There is also a swimming pool, which is also available to residents of neighboring villas. Its price is 1.59 million euros.
The Knight Frank agency also has properties for sale in Puerto de Hierro. The first one is a newly built and equipped villa with five bedrooms, a garden, a garage, a separate office, an elevator, as well as a roof terrace. It costs 2.8 million euros. Not far from it is an even more pretentious residence, built in a classical style. This is a real urban estate with nine bedrooms, four reception rooms, servants' quarters and a wine cellar. There is also a swimming pool and a large garden with a pavilion. Note that the lower level of the mansion needs cosmetic repairs, which, however, does not greatly affect the price - it is 4.3 million euros.
Which area to choose
When Englishman Graham Taylor moved to Madrid ten years ago to live with his Spanish wife, he bought a ground-floor apartment near the Retiro district for 25 million pesetas (approximately 160,000 euros). Six years later, he sold it for 360,000 euros and moved to a more spacious apartment in Pozuelo, on the outskirts of the city, which cost 460,000 euros. "Today, such housing is sold for at least 530,000 euros," says Graham, so even taking into account 10% of the costs accompanying the change of housing in Spain, we have already covered all expenses and even earned something. I think that the cost of our apartment will only continue to grow." Alexander Norris from the Spanish agency SPI, believes that Graham really has reason to be optimistic. "In many regions of Spain, the rate of price growth has become lower – but not in Madrid," he says. - The capital will always be attractive for investment. At the same time, the maximum growth is observed in the most fashionable and expensive areas. Apartments in new projects are sold out almost completely even before the start of construction itself."
Norris recommends to buyers from abroad areas such as Conde de Orgaz and Arturo Soria, where many foreigners live and rental is always guaranteed, as well as the Salamanca and Chamberi districts - to receive high rental income.
In the Arturo Soria area, SPI offers for sale a bright, spacious four-bedroom apartment for 1.1 million euros. The residential complex in which it is located has its own courtyard, garden and swimming pool. Another offer is a newly built building, which houses studios and small apartments. Prices start from 2 million euros, but the company assures that the prospects of this complex for further rental are very attractive. A little further from the city center, several chalets are for sale, among which is a wonderful house in the Costillares area, with four bedrooms and four bathrooms, with a swimming pool and a garden. Its price is 1.32 million euros.
Unfortunately, most Madrid real estate agencies focus only on local buyers and do not work with foreigners. There are many interesting projects in the city, but it is quite difficult for those who do not live in Madrid to understand the market.
