29 March 2017 – El Economista
The luxury real estate sector seems to have been the least affected by the real estate bubble and the serious economic crisis that has hit the country over the last few years. In this sense, premium housing in Madrid has reached a historical high with the number of real estate transactions at maximum levels. During 2016, more than 800 homes costing more than €1,500,000 were sold in the capital. That represents an increase of 60% compared to the previous year.
This data has emerged from the latest report compiled by the prestigious luxury real estate agency Engel & Völkers. The report also states that house prices in Madrid have increased exponentially with respect to previous years.
According to data provided by this luxury real estate agency, in 2016, the vast majority of luxury homes in Madrid, almost 720, cost between €1.5 million and €4 million. A small percentage of the premium homes sold in the capital had a purchase price of more than €6 million. In fact, in some areas of the capital, a luxury home now costs more than €15,000/m2.
Good times for luxury homes
These are good times for luxury homes in Madrid. The current trend, according to the experts, is to construct new build properties, to the detriment of second-hand homes. Nevertheless, this increase in the number of luxury homes sold in the capital in 2016 could be explained by an increase in real estate renovations in the city’s most prestigious neighbourhoods. The high demand for homes in premium areas and the limited supply available also means that prices in certain areas of Madrid are soaring.
The Madrilenian neighbourhoods with the highest demand for luxury homes include El Viso in the Chamartín district and some neighbourhoods in the districts of Salamanca, Retiro and Centro.
In terms of new builds, developers are moving to the outskirts of the capital, given that there is no land left in the city on which to build new and exclusive developments. Boadilla del Monte, Villaviciosa de Odón, Las Rozas and Pozuelo have become the most appealing areas for the construction of exclusive new build homes.
Original story: El Economista (by María Sempere)
Translation: Carmel Drake