_How do Madrid's prime neighbourhoods compare?
El Viso is ranked second ahead of Almagro and Jerónimos. Lastly, Justicia accounts for just 3% of the total prime residential property transactions.
Domestic buyers account for two thirds of Madrid’s prime residential property transactions, with a considerable increase being seen in the number of buyers from other provinces, the latter also benefitting from the Region’s tax deductions.
However, there are a growing number of international buyers, especially from Latin America and other European countries, who account for 18% and 11% of demand respectively.
The cultural and historical ties that Spain shares with Latin Americans and the proximity and similarity in institutional frameworks with other European countries are both factors that increase Spain’s appeal as an investment options for these markets.
As these new market players know, it is paramount that they understand today’s buyers’ needs so that new developments meet their requirements in terms of rooms and spacious layouts, high-end specifications, exclusive projects offering state-of-the-art technology that affords the home with maximum comfort and energy efficiency.
Pricing
After remaining stable for a year, existing residential property prices have now started to climb at a far higher rate than in previous years in all of Madrid’s prime areas.
We would particularly highlight Jerónimos. Here, prices remained largely flat last year, nudging up just 0.5%, mainly due to the political instability, after rising 8% in 2014 and compared to the spike of over 13% seen so far this year.
We would also highlight the increase in price per sqm in the Almagro neighbourhood, where the best properties have reached €6,000 per sqm versus €5,300 per sqm last year. Prime residential properties in the remaining areas have registered average price increases of €500 - 550 per sqm, up by between 8.2% in Salamanca and 10.8% in Justicia.