Real estate advisor Knight Frank claims that in the most exclusive areas of Madrid prices of houses rebounded by 5%. According to the firm´s calculations, foreign investors perform 15% of all luxury property purchases in the Spanish capital. The majority of them comes from Latin America, Europe and Asia.
The coastal zones have handed over the priority to large cities. In Madrid, 50% of demand centralizes on neighbourhoods of Salamanca, Jerónimos, Chamberí and Justicia. All investors pay special attention to closeness to services and affordable price per square meter.
Strong rebound in prime-asset demand that cannot be fully met by supply will probably cause a slight rise in prices.
Knight Frank itself believes the housing values hit the bottom in 2013. Also, the advisor assures the prices are likely to stabilize this year and the rising tentency in sales will persist due to the “Golden Visa” scheme for foreigners and State tax incentives for property acquisition to enhance local demand. Moreover, the firm blames the lack of lending for crippling the real estate market.
Original article: Idealista
Translation: AURA REE