If we compare the price of real estate in Madrid to other European capitals such as Paris, London or Amsterdam, apartments in Madrid still sell at a discount. According to the Deloitte 2022 Property Index, the average price of residential real estate in Paris is 13,462€ per square meter. The average price of real estate in Inner London is 8,436€ per square meter, in Outer London it is 6,510€ per square meter and in Amsterdam it is 7,600€ per square meter. In contrast, the average price per square meter of residential real estate in Madrid is 5,073€. Furthermore, strong demand has turned the Madrid market into one of the most attractive for investors.
Three reasons to invest in apartments in Madrid
If this data does not assuage your fears, and you still consider buying apartments in Madrid a risky bet, here are three reasons why Madrid is an excellent place to buy apartments, even given the recent price appreciation.
1-Investing in apartments in Madrid is highly profitable
Madrid continues attracting people from all over the world due to its attractive international profile. This keeps demand for Madrid apartments strong; wealthy people from South America are currently flocking to the city to avoid unrest at home.
Madrid is the gateway to Spain, which has one of the top three countries in the world to be impacted by AirBnb investment. The economic impact from AirBnb investment in the country is almost $7 billion. If we take the US out of the list, which sits comfortably at the number one spot, only the French economy has seen a bigger impact from AirBnb investment. Since the average price of real estate in Paris is over 2.5 times that of real estate in Madrid, and the French government has cracked down on AirBnb licenses, Madrid is the obvious choice for an AirBnb investment. Its robust cultural offerings, recreation opportunities and wide selection of restaurants, make the Center the obvious choice for your Airbnb. If you invest in a Golden Visa property (more than 500,000€), you can expect to receive a rental yield of 5-6%, which easily surpasses the average rental yield in Madrid of 4.6%.
Since the capital is reinventing itself, there is large potential for the real estate market to achieve higher valuations in time, resulting in great profitability potential for investment properties. Additionally, properties inside the M30 have great potential for long-term rentals.
2- Madrid has apartments for all tastes
It is not a secret for anyone that loves Madrid that the city seamlessly combines the traditional with the modern. There is such a large variety of architectural styles, layouts and interiors that every investor can find something to suit their tastes and investment criteria.
Therefore, renovating common apartments in Madrid and turning them into unforgettable rentals is one of the key ways to make the most of your investment in the Spanish capital. As Madrid Estate offers a complete range of property services, we can help you manage your renovation from start to finish.
3-Lots of tourists visit Madrid
Investing in Madrid continues to be safe and secure because it is an obligatory stop for tourists. Plus, the city continues to attract a large amount of business travel because there are so many domestic and international businesses in the city. The city has benefited greatly from Brexit, as many companies have moved their European offices to the city. This flow of travelers is constant and sustainable, so investing in a Madrid apartment is an opportunity you should not waste, whether you plan on renting it on the short, medium or long term market.
Even with the recent increase in prices, investing in apartments in Madrid is still one of the best investment opportunities in the real estate sector. If you want to learn more about buying an apartment in Madrid for investment purposes, schedule a FREE CONSULTATION TODAY with Fabiana Greci, our Founder.
