Demography is one of the driving factors of the property market in order to assess the needs of properties…and to be able to predict the market. In this article, we introduce some figures about demography forecast in Madrid and current prices in the Spanish capital that may help property investors.
According to the Regional Statistics Institute in Madrid, the population in residential areas outside the Spanish capital will rise by 78% by the year 2017. In the surrounding area of Madrid, the population will grow by 46% whereas in the city, the growth will be equivalent to 14.8%.
In real numbers, the estimation is that the population will grow by 709,780 inhabitants to reach a total number of 7,211,497.
Such a growth outside the city centre is related to the property prices’ trend and affordability, according to the mentioned Institute. The city centre becomes too expensive and inhabitants tend to find more affordable housing outside the centre. Also, infrastructure improvements and changes and new trends in the job market are important.
Main locations in cities have always been prime property investments. The centre of Madrid is definitely a prime area. Also, the suburbs could be a good property investment because the demographic growth prospect will ensure the demand. It could be a good idea to search the right investment in the city.
Property prices in Madrid, January 2011
The Spanish property valuation company, Sociedad de Tasación SA, has stated that, in 2010, property prices in Madrid did fall an average of 2.5% compared with 2009 property prices. The average price per square metre currently sits at €3,290 . According to Sociedad de Tasación SA, the 2.5% fall is similar to the national property prices drop in 2010.
This is the breakdown of Madrid prices in Euros/sqm per borough according to Sociedad de Tasación SA, published yesterday on idealista.com:
City Centre: 4,247
Puente Vallecas: 2,723
Ciudad Lineal: 3,714
Villa de Vallecas: 2,608
San Blas: 2,796