Pozuelo de Alarcón is one of the most demanded areas for property investors. However, at present, it has little building land available. According to facts and figures shown by the Tax Authority regarding the per capita income in October 2018, Pozuelo de Alarcón is the wealthiest municipality in Spain with 72.993€. It is followed by Matapedrera (Barcelona) with 54.113€. Next comes Boadilla del Monte with 53.397€. As we can see, there is an enormous difference between Pozuelo de Alarcón and the rest. This fact makes us realise how very much in demand this neighbourhood is. Pozuelo de Alarcón has always been very appealing for home buyers. Unfortunately, the product is very scarce because building land for new construction has nearly run out. It has also happened in other areas of Madrid, a fact that has led investors to seek property elsewhere. Thus, Boadilla del Monte has become an important option. We must bear in mind that Boadilla del Monte is the third richest area in Spain and therefore, an excellent choice for exclusive real estate buyers.

PRICE ADJUSTMENT

Even though Pozuelo de Alarcón is one of the wealthiest neighbourhoods in Spain, it has gone through difficult times regarding real estate. According to the appraisal company Tinsa, the price of property there has dropped 35% in relation to the year 2007, when prices were at the highest peak. In 2007, property price per square metre was above 3.700€ ( 3.743€ exactly ). However, at present, it has dropped to 2.400€. We must regard this decrease in price as a normalization of the real estate market because previously, prices were overinflated due to the housing bubble which led to a high increase. So, this does not mean that the market is being undermined. As a matter of fact, according to Tinsa, during 2018 an upturn in prices has taken place in Pozuelo de Alarcón with an increase of 1.5%. As we have already mentioned, the lack of building land has made buyers seek other areas and this has, in turn, limited the growth of population in Pozuelo de Alarcón. There are hardly any new housing offers and the price difference with other nearby areas such as Boadilla del Monte or Majadahonda can reach up to 50%. This has been a determining factor for buyers who are now seeking property elsewhere.

THREE DISTINCT AREAS

In Pozuelo de Alarcón, there are three distinct areas, each of which has different kinds of housing. In the village of Pozuelo and the western part of the area, there are mostly detached homes. As for the area of Arroyo de Meaques, the single-family homes are much more spacious so as to accommodate larger families and there is a greater offer. The last and most exclusive area is La Finca. This neighbourhood is the chosen destination for football players, actors and people with high purchasing power. Here, we have mostly single-family homes even though there are also some multi-family housing units. The price is usually above one million euros.

Picture 01: M. Peinado

Picture 02: Xauxa Håkan Svensson