Luxury housing in Madrid skyrockets, in sales and prices

Luxury housing in Madrid skyrockets, in sales and prices

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The luxury housing market soars in Madrid. In 2021, 87,500 purchase and sale operations were registered, which is 62% more than in 2020 and 33% more than in 2019. The data indicates that the economic fear associated with the pandemic has been left behind, and the price of premium housing in the capital increased by 3% last year, after falling by 4% in 2020 compared to the previous year.

The real estate consultant Knight Frank has prepared an analysis of the most outstanding aspects of the residential market in Madrid, and prices will grow by 6% more during 2022 compared to 2021. In terms of prices, Madrid has been among the first 100 cities of Global Residential Cities Index prepared by the aforementioned real estate consultancy. This index, which includes 150 of the main cities around the world, points to a growth in the price of housing in general of 7.2% in the Spanish capital during 2021 and 6% for residences prime.

In fact, Spain is one of the 15 countries – it occupies the 11th position – with the highest number of large estates: in total 11,685 residents with high purchasing powerwhich represents an increase of 12% compared to 2020. And Madrid has 2,903 residents within this group, which places it in 23rd place worldwide.

Among the aspects that most attract the great fortunes, the study highlights that Madrid – they place it among the 15 most attractive cities to invest in – is the economic engine of Spain, and one of the cities with a greater economic and social development the continent in recent years. In fact, it attracts many multinational companies, which locate their corporate headquarters in Europe. In favor also plays its accessibility: the public transport network, with metro, buses and Cercanías. In addition, Barajas airport has a direct connection with 192 destinations, of which 146 are international.

“Madrid is a city that offers it all. It offers homes of the highest quality in all price ranges, but also an excellent quality of life thanks to the wide variety of plans that are presented in the capital, for all tastes”, explains Carlos Zamora, partner and head of residential in Knight Frank, which highlights the international vocation of Madrid, with residents of very different origins, from Latin American citizens to Asians, passing through inhabitants from other European countries. “It is one of the factors that brings great wealth to the capital,” he adds.

house prices prime they have increased, as highlighted in the Madrid Focus report, by 45.5% over the last decade, and the experts’ forecasts show a rise of 6% at the end of this year. Another piece of information that stands out, after analyzing 20 capitals, in terms of the space that can be purchased with a million dollars, with which 105.5 square meters can be purchased, which places it as the sixth European city most exclusive in this line. Madrid is behind Monaco, where for that money you can buy 14.6 square meters of housing, London, Paris and Berlin in relative value.

Another trend highlighted by Knight Frank experts is the good performance of second-hand housing. After this segment was reduced in 2020 in favor of new construction, due to the increase in supply and the ease of buying off-plan, 2021 has once again been the year of second-hand housing. 85% of the total sales operations that were registered in Madrid last year were of the section of second-hand housing.

The remaining 15% corresponded to the section of new construction, which, in the opinion of the aforementioned experts, is a positive fact, since, in times of crisis, housing was not built. Also, during the past year projects started for the construction of almost 21,000 homes in Madrid, which implies a growth of 43% compared to 2020. In addition, another 16,600 were completed, which represents an increase of 23% compared to those completed in the previous year.

Regarding the rental of homes in the capital, Knight Frank highlights that the Community of Madrid will be safe from price controls, announced by the Government with the Housing Law.

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