Spanish capital Madrid has been confirmed as a hotspot for overseas property investors during 2017.
Luxury estate agency Lucas Fox has seen a sales rise of 30 per cent in the Spanish capital city of Madrid, with enquiries from the US and UK up by 108 per cent and 57 per cent respectively.
Of the overseas property investors purchasing in Madrid, almost two thirds (62 per cent) bought for investment purposes, while the remaining 38 per cent purchased properties as second residences.
Director of Lucas Fox Madrid, Rod Jamieson, commented: ‘The Madrid market this year has continued to follow a similar trend to 2016 with strong local and national market activity growth and increasing demand from international investors. We have seen sales transactions increase by nearly a third compared to last year and we expect them to increase fivefold by the end of the year.’
Mr Jamieson continued: ‘More and more international buyers are choosing the Spanish capital as the best option in which to invest their money, thanks to high potential for capital gains in the mid to long-term, excellent rental returns and the superb lifestyle on offer.’
Property sales in Madrid were up by 15 per cent in the year to June 2017 according to the Spanish National Institute of Statistics, while prices increased by around 6 per cent during the same period.
However, in certain prime locations such as Salamanca and Chamberí – where demand is generally greater – prices have risen significantly, up by 10 per cent and 14 per cent respectively.
The prime residential property market in Madrid is growing at a rate of knots, with the volume of sales for homes worth more than €900,000 up by 27 per cent in 2016, mainly attributed to growing interest from overseas property investors.
Jamieson said: ‘Compared to most Northern European cities, property in Madrid still offers good value for money. But like Spain as a whole, the city has a 2-speed market. In some areas prices have only recently levelled out but in highly desirable areas where demand is high, there have been notable increases.