Investing in an apartment is one of the biggest steps you will take in life. You need to make sure you are well informed and have good advice.
Is now a good time to buy an apartment in Madrid?
Will my investment be profitable?
What are the best neighborhoods to buy an apartment in the Spanish capital?
If you are having doubts such as this, here is a small guide to help you know where to live and invest in Madrid.
Is now a good time to invest in Madrid property?
Yes. The capital of Spain is increasingly considered an excellent place to make a successful investment. This is thanks to the revaluation of the real estate market following the financial crisis. Interest rates have decreased and profitability has increased.
It is a good time to live and invest in Madrid. If you wish to invest in Madrid, you can purchase a property that can be let out for an average return of 4.5%.
So . . . Is it profitable to invest in an apartment?
Compared to other alternatives, like bonds for example, investing in an apartment in Madrid will be more beneficial for your future savings.
What are the best neighborhoods for buying an apartment in Madrid?
Before discussing the costs and benefits of different neighborhoods, we have two tips:
- You have to balance risk and return.
- The perfect apartment doesn’t exist, but you can make it so.
Surely you are wondering what we mean when we say you have to balance risk and return when choosing a neighborhood, but it is simple: Many times we look at a neighborhood and think it looks marvelous, but we forget to consider whether it will perform well on the rental market. If the your apartment has a low occupancy rate it will not be a good investment.
With this in mind, we consider the best neighborhoods to invest in Madrid, as of the first quarter of 2019, to be: Chamberí, Salamanca, Tetuán and Chamartín.
These neighborhoods perform well on the rental market, plus they are great places to live.
If you still have doubts about this being an excellent time to invest in Madrid, Barcelona’s Universidad Pompeu Fabra has highlighted in their recent report that the revaluation of the Madrid property market makes it the most attractive for property investment in Europe. Also, EURIBOR is at extremely low levels, making a Spanish mortgage a very attractive option. Leveraging your Madrid property investment will be very profitable in the long term.