Interest in buying luxurious flats in Madrid, by those from countries such as the USA and some Latin American countries, is an increasing trend. The centre of Madrid is suffering from a price revision much less strict than other sectors, with the district of Los Jerónimos leading the demand.
The pulse of the luxurious housing market in Madrid is stabilising, reaching the figure of 43 finalised transactions during this past year, compared with the breakneck speed in which they have reduced the second hand homes sales in other business operations, according to Knight Frank.
By area, of the 43 transactions made, 32% were in the district of La Habana, 26% in the district of Salamanca, 25% in Chamberí, 11% in El Viso, 4% in Jerónimos and 2% in Justicia. There was a difference in the transactions – of some 10% on average – between the initial purchase price and the closing prices, data which reflects the gap between reducing current supply and demand. The most representative data can be found in the district of Chamberí, with an increase in the marketing offers of some 7%, whilst the district of Salamanca maintains a stable trend on its proposal of stock.
The single average price reached the barrier of €1,465,000 counteracting the more than 4% of 2011’s respective rise. Turnover in 2012 has reached 67 million Euros, improving the respective volume compared to the previous year. From this, we found an adjustment to price performance which implies a more reasonable approach to demand.
The area of Los Jerónimos is positioned as the most exclusive area with an average price of €6,741/m², followed by Paseo de la Habana with €6,395/m². The district of Salamanca, as well as being the zone with the most luxurious housing stock, has seen a drop in price to €5,900/m². La Moraleja, Mirasierra and Puerta de Hierro are the luxurious areas in least demand.
New buyers in search of the city centre
This data fits together well with the type of people that, according to Ernesto Tarazona, Director of Property and Land at Knight Frank, are looking for these types of properties: people with their own resources and a smaller need for financing, who “come from Madrid’s most decentralised housing developments, and who are now looking to move into properties in the city centre with areas of 250 to 300m².”
Tarazona also highlights the interest of buyers who originate from countries such as the US and other Latin-American countries such as Mexico, Venezuela and Colombia as another reason for the upward trends.
As an example of luxury properties in Madrid prime areas you can see: Luxury apartment in calle Goya
Property investment trend in Madrid barrio Salamanca