Introduction of covid passport and the speed of vaccinations have given the green light for recovery in various sectors, including real estate. In the current environment, it is expected that by the end of 2021, more than 30% of buyers of luxury real estate in Madrid will have large investment portfolios and be international entrepreneurs. The capital is ranked first as a favorite tourist destination in Spain for buyers from America, Latin America and Asia.
Investment or secondary housing are the main preferences of international entrepreneurs. In fact, according to the 2021 Barnes Global Property Handbook, 89% of high-end buyers believe they will spend more time in a second home during the year, and 72% believe they will alternate their first and second homes equally.
“The aim is to attract buyers so they can establish their first residence in Spain. In this regard, the Golden Visa will now also be issued to those investors who seek to promote or build their own house on previously purchased land. However, purchases on this express visa are still in the minority,” says Eduardo Crisenti, Managing Director at Barnes Madrid.
In the first half of 2021, foreign buyers accounted for 30% of purchases in the luxury real estate sector in Madrid. If you focus on European buyers, the interest falls on repaired secondary housing. On the other hand, residents of Latin America, America and Asia prefer new construction projects with a high degree of security and style, similar to those of the major cities of their respective countries.
As for property characteristics, the areas of Salamanca, Centro and Chamberi are the most popular in Madrid. Secondary housing prices in the capital are around 6,700 euros per sq. m., while prices for new construction are over 9,300 euros per sq. m. The average area is about 150 sq. m., 3 rooms, spaciousness, light and a terrace.