6 October 2017 – Expansión
Yesterday morning in Madrid, the luxury real estate agency Lucas Fox presented its “Real Estate Market Report”, which analyses the behaviour of the property sector during the first half of the year, and more specifically, the profile of purchases in the premium segment in Madrid during the period.
Undoubtedly, the most significant finding is that, according to the agency, buyers from Latin America accounted for almost one third (31%) of all the transactions undertaken, compared to 11% in 2016. In terms of the reason for their purchases, 62% of the buyers at Lucas Fox Madrid acquired a home for investment purposes, whilst the remaining 38% were looking to purchase a second home.
We have seen sales increase by almost one third compared to the volume of transactions last year and we expect them to multiply five-fold by the end of this year. Increasingly more international buyers are choosing the Spanish capital as the best option for investing, thanks to the high medium and long-term yields, the strong rental income and the excellent lifestyle that Madrid offers”, said Rod Jamieson, Partner at Lucas Fox Madrid.
In its recent report, Spain’s National Institute of Statistics (INE) indicated a 15% increase in the volume of property sales in Madrid during the first half of 2017, with respect to the same period in 2016. The number of transactions completed during this period was just 9% lower than the peak levels recorded at the height of the market. Meanwhile, according to data from the Ministry of Development, the volume of sales in the luxury residential market (homes worth more than €900,000) increased significantly, by 27%, due primarily to the increase in international demand.
Prices at the end of June 2017 in the Community of Madrid had increased by 6% with respect to the same period in 2016. Nevertheless, according to data from the real estate portal Idealista, prices rose by even more in the most prime areas of the city, such as Salamanca and Chamberí (by 10% and 14%, respectively), where demand is greatest. For this reason, Lucas Fox inaugurated its second Property Lounge in Madrid yesterday, located on Calle Bárbara de Braganza, 8; it is designed to respond to the growing demand for luxury properties in the capital.
Original story: Expansión (by L. Ruiz-Ocaña)
Translation: Carmel Drake