12/06/2014 – Expansion
A high executive from South America has just bought a home in the Salamanca neighbourhood in Madrid for €700.000 with view to moving in there permanently together with his wife and two children. “The moment to buy is excellent and there are pockets of opportunities”, he assures.
The investor is not an exception to look at Madrid or Barcelona when it comes to buying a house in Europe. According to advisory firm Knight Frank, searches for high-end properties in its website in majority target these two cities. Madrid doubled interest in its houses, while in Barcelona the demand rose by 60%.
After years of deep economic slump, causing housing values to dip-down 45%-55% in such capitals as Madrid and Dublin, the battered market starts to pick up. Over the past year until March 2014, luxury home prices in the Spanish capital jumped by 4.8%, while in the Irish by 24.6%.
In Madrid, the nations that mostly aim at high-standing property are Venezuelans, Colombians and Britons. In turn, the British, the American and the French lead in the queue to Barcelona houses. The Catalonian capital sees 70% of all luxury real estate transactions sealed by foreign investors which makes the city one of the most international spots of Europe. Only Monaco and Venecia register more buyers coming from outside of the country.
When it comes to Madrid, the market is more popular among Spaniards who account for 75% of all properties changing hands (25% sales to foreigners).
Comparing prices, for a 20.6 square meter apartment in Monaco or a 33 sqm one in London an investor would have to pay around €730.000, while in the two Spanish metropolises for such amount they could buy a 166 square meter dwelling.
An average price of a luxury unit in Madrid oscillates between 5.000-7.000 Euros, whereas in Barcelona is stands at between 5.000 and 9.000 Euros. To contrast, values in Paris hit between 12.000-15.000 Euros, about 30.000 Euros in London and 55.000 €/sqm in Monaco.
The main reason for looking for a home in Madrid is the quality of life, whereas in Barcelona the trigger is the excellent communication, says the report by Knight Frank.
Original article: Expansión (by Amparo Polo)
Translation: AURA REE