Is It the Right Time to Buy an Apartment in Madrid ?
Yes, prices went down. But the market is now back to growth.
Let’s be frank: Madrid has seen a 40-60% decrease since the peak of the bubble in 2007.
The centre of Madrid is already recovering, with a 5% price increase in the last 2 quarters.
Also, our experience tells us that there are still opportunities to seize undervalued properties, but not to negotiate as much as before. In fact, before most of the value use to be made by negotiation. Now, the value is made by selecting an undervalued apartment, and detecting its potential for buy-to-let on the short term / holiday rental market (airbnb etc…).
So if you go for well valued apartments in the attractive neighborhoods of the centre of Madrid, do not expect any big discount. Expect quality properties with great environment, shops and entertainment around it, and buyers fighting to get the best priced properties.Expect to find a quality property you like at a price never seen since 2004 and work to get an even better price. Expect to obtain 5% return in general, or 10-12% working with expert buyers and investors like us specialised in Madrid and international buyers.
Conclusion: Should you buy now ?
Yes, you should buy now if you comply with these 3 conditions :
- You want to hold for at least 5 years, either to live in it or rent it out, or you are ready to refurbish entirely to flip,
- Your bank has confirmed they will give you a mortgage,
- You are ready work very hard or collaborate with a professional to find the right property, conduct a thorough negotiation, check all legal issues and ensure you get a price which will enable you to see capital gain on the mid-term
Be aware that if you have the money to buy right now, you’d better leverage the fact that little buyers are on the market to seize opportunities. In 2 years when credit will flow a bit more, there will be more competition to buy and the quality properties at an amazing price will have disappeared.
Don’t let the market and the news decide for you. Take into account your personal objectives, the fiscal gains, the negociation power you have now, and prepare to negociate to get the deal you need to protect your investment.
With this article, I wanted to give answers to the typical questions all prospective buyers ask themselves,
If you need help to ensure you will buy the best property in Madrid for your needs, book your free consultation now, just write us:
This post is also available in: French