09 August 2017
The Malca House
Madrid is the European city where luxury housing prices have increased the most
“Prime” housing prices in Madrid have increased by 10.7% in the last year, putting the city seventh in the world in price growth, according to the Prime Global Cities Index published by the real estate consultancy Knight Frank.
Luxury housing prices in the Spanish capital began their upward trend towards the end of 2016, “initially because of the lack of luxury residential projects in the more central areas, and now because demand has been pushing up prices in a segment that has become more sophisticated in the last 18 months,” Knight Frank residential director Carlos Zamora explained.
Zamora added that prices are also increasing because projects coming onto the market are “increasingly sophisticated, reaching the super prime segment.”
In addition, Knight Frank said that customers are “increasingly demanding” because in many cases they are international, second or third home buyers who “are looking for a ‘trophy’ asset, requiring qualities and design that are above the average of the usual luxury products.”
The index prepared by the consultancy is headed by Guangzhou and Toronto where prices have increased between 20% and 35% in the last twelve months.
In Europe, only Madrid and Berlin are in the ‘top 10’ cities with the highest annual price increases, occupying the seventh and eighth position, respectively.
Original Story: Europa Press
Translation: Richard Turner