There is a property micro-market in Madrid that we can call a “hotspot” of apartments for sale without any doubt: new homes and new housing developments in the center of Madrid. They are very rare, and it is hoped that the lack of available new homes in central Madrid can be satisfied (in part) by second-hand refurbished homes.
The new home in central Madrid is a scarce commodity. The developments of homes from scratch can be counted on one hand, and, although the total offer increases if one adds in refurbished buildings, even so, all of this situates around 450 homes, according to the Servicio de Estudios de Foro Consultores (Forum Consultant Studies Service).
In fact, between 2011 and what we’ve seen so far of 2012 only three new construction developments have started to be marketed.. In total in the district there are 30 developments being sold as new, including refurbished homes.
Of the development of the central district, the most ambitious is the one in Gran Vía, which consits in 96 luxury homes and the investment is about €100 millions.
In general, the homes that are born in a district as heterogenous as Central Madrid-that covers neighborhoods like Lavapiés, Universidad, or Chueca- match up in their dimensions, since they are small, modern, and have a touch of design, provided that the regulations allow it, since any project that is approved in the heart of the capital has to pass the test from the Comisión de Patrimonio Artístico de Madrid (the Artistic Heritage Commision of Madrid, or CIPAM).
“Not all of the areas of the district work the same way and each building for sale is unique and is looking for its own audience,” explains Carlos Smerdou, representative advisor of Foro Consultores (Forum Consultants). An example of a successful operation is the marketing of the Torre de Madrid (Madrid Tower) in the Plaza de España, of which now only remain a third of the 131 homes that went on the market in 2011, according to reports from the marketing firm. Other restorations and newly contructed buildings in the district, however, have been on the market for more than three years.
This article is an extract from the Spanish paper El Mundo
The Spanish property market is not dead at all. Investors and home buyers must find the right market and price to satisfy their needs. For investors, buy to refurbish in Madrid city in a solid option.
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