As you are planning to buy a property in Madrid within the next 12 months, I wanted to update you on how things are evolving over here and what you can expect as you are going through the purchase process. Overall we entered a buyer market with more opportunities to close undervalued properties. To give more context I will share with you the journey we had with a recent client.
Market
In Madrid prices decreased 1.2% over the last 12 months. The historic center has been one of the most affected with a 5% decrease compared to last year. Areas with more access to green areas suffered less and in some cases increased in price.
On a higher level we have seen some increase in unemployment rate (15.5% in February 2021 vs. 13.6% in February 2020) and some decrease in mortgage interest rate.
Search
In terms of search the result looked similar to what we have seen in the past. Out of around 430 properties available within the search area about 20 fit enough our client profile to be called and viewed. What did change is the length of time properties would be listed in the market.
Negotiation
This reduced transaction rate is what we aimed to take advantage of during negotiation. We were able to find 3 strong candidates to negotiate upon following an in depth review.
This put us in a strong position to start putting low offers on each candidate, resulting in higher negotiation margin on the second round and ultimately finding a solid candidate at an attractive close price.