It seems clear that luxury housing has a taste for Madrid as it continues to be one of the favourite choices for investors of this type of property. Some time ago, in this blog, we wrote an article about Madrid being one of the most demanded cities regarding luxury real estate. In that article, we said that the forecast at the end of 2019, was that the capital of Spain would be the third residential place, in all the world, of luxury housing. Right now, we are in the middle of an unprecedented health crisis and our real estate system is trying to calculate the impact that this crisis will have on the sector. However, these effects will not be the same for everybody but, if we focus on the luxury sector we can say that the appearance of the COVID-19 will hardly bring about change or will it affect prices or demand. At least that is what most experts think, and if we assess market behaviour it seems clear that their point of view is correct. Not so long ago, exactly last week, in this blog we wrote an article about the very high demand for a luxury penthouse. In that article, we stated  that sale and purchase operations involving this kind of product were closed in a record time, especially in Madrid and Barcelona. This fact emphasizes the great interest, at present, for this type of property in Spain, and very especially in our two main cities.

MADRID, OBJECTIVE OF LUXURY HOUSING INVESTORS

It is estimated that, currently, Madrid is the second city in the world for luxury housing investors, only surpassed by London. In order to arrive at this conclusion, all the deals that were carried out, throughout the world, regarding such properties, were taken into account and showed that Madrid was time and time again the chosen destination. The fact is that the luxury real estate sector in Madrid is very successful and continues to thrive without significant changes since the appearance of the COVID-19. In consequence, we can say that Madrid is a very important lure for luxury property investors, in spite of the health crisis we are going through. If we look at Barnes Cities Index regarding the list of the 50 cities in the world which attract the most interest for luxury property investors, Madrid holds the tenth position. High standing real estate property continues to be very much sought-after. And hence, Madrid is one of the most appealing cities in the world for this type of product.

MORE SPACIOUS PROPERTIES

It is worth noting that when an investor looks for luxury property in Madrid, the search is usually for a first residence because in general, luxury property in holiday destinations are located on the coastline. Nearly all experts agree on the fact that that the changes that have been caused by the coronavirus regarding the high standing residential sector, are more related to the characteristics of the product than to its price. At present, the buyer looks for even more spacious property and especially appreciates large terraces and gardens. In any case, we must keep a constant eye on how everything evolves from today until the end of the year so as to know what changes can be anticipated. In Estate One we really hope that the changes are for the better.

Picture 02: Federico Jordá