Real estate investments in Madrid: Beginners Guide
Madrid enjoys some of Europe’s highest returns. The entry price is extremely low, and Madrid’s average property investment returns are some of Europe’s best, especially among leading capital cities. Madrid is one of Europe’s most visited cities, both by visitors and business people, and is host to many important local and multinational companies. Therefore Madrid receives both a significant influx of visitors and people wanting to stay and work in the city to improve their careers.
Prices of properties in Madrid
Some of the most expensive municipalities to buy property in Spain are several parts of the Community of Madrid. The Spanish capital is home to some of Spain’s wealthiest neighborhoods, such as the historic Salamanca region, which, in the third quarter of 2020, topped the list at over five thousand euros per square meter.
The average home purchase ticket, meanwhile, was EUR 295,927, which is very similar to the height of the historical series reported in 2007 (EUR 297,748) just before the housing bubble erupted.
How to invest in Madrid real estate as a foreigner?
If you are preparing to buy a home, it is smart to have cash prepared in a financial institution and to give attorney power to a specialist you find trustworthy in Spain.
Move quickly, but not too quickly
The Spain’s capital’s marketplace is in a quite optimistic and competitive moment, so the move to purchase an asset in Madrid does not need to be postponed. Question a lawyer to ensure that the property has no liability attached to it and that the seller is the property’s legal owner.
Get all your economic and legal matters sorted
Before you begin searching seriously at the property marketplace in the capital, we suggest that you do these things:
- Have money at your side, convert your currency to EUR and have cash at hand to make the move. If a cheque is used for the purchase, allow the time to get it issued.
- Get all of your legal papers sorted. We suggest that you provide somebody in Spain that you find trustworthy with a Power of Attorney. This way, when necessary, you are going to be in the position to act easily and during the main steps of the transaction, you will not have to fly to Madrid.
Ensure that you receive an unbiased valuation
For two main reasons, this is essential: first, you will know the median prices in the region first-hand, and also, it is going to allow you to set the final selling price.
Negotiate sensibly on the price
It is perfectly appropriate to negotiate the cost of an asset in the capital’s marketplace, but note that the profits from the selling of the real estate asset constitutes a significant percentage of the net worth of the majority of sellers. Stay in control of your emotions and remain respectful.