Years ago, the issue of buying residential property off-plan, was considered wishful thinking and an illusion. However, things have changed in the Spanish real estate market because nowadays, it is possible to buy this kind of option. In the worst years of the economic crisis, residential property off-plan was extremely difficult to sell due to the fact that second hand housing captured most of the market. In those years transactions were scarce, and not built housing did not have competitive market. Thankfully, this situation has changed. The real estate market has revived to the point of advising investment in housing, and the purchase of property off-plan.

THE PROPERTY INVESTOR HAS MORE FAITH AND CONFIDENCE

The year 2016 was a turning point regarding the demand of the purchase of residential property off-plan. The SIMA (Salón Inmobiliario Internacional de Madrid), shows that the offer of property off-plan outnumbers that of built property. This fact is very informative because in previous SIMA editions residential property off-plan was hardly mentioned. The property investor in Spain has undoubtedly regained faith and confidence in this product which years ago gave rise to concerns. It is beyond doubt that as a result of the price adjustments carried out by the Spanish real estate market, this type of offer has strongly revived.

MADRID: A LIMITED SUPPLY

We have especially noticed that in Madrid the demand of property off-plan is increasing. Last year, the sale of property off-plan in Madrid rose 150%. We have already mentioned in our blog that Madrid has a problem regarding available plots of land for building. This fact brings about the scarcity and shortage of the product. Experts state that its purchase is higher than expected. However, the offer decreases and this product may, in the short term disappear unless something is done in order to revive its offer in one way or another.