Why invest in Madrid real state?

There are cases of countries in the world which capital is not the largest nor the most important city in the country economic-wise. Important countries in the world such as Canada, Australia, Brazil, New Zealand and the United States falls into this category.

However, for most countries in the world, its capital continues to be the largest city in the country, which makes it easier for international investors to decide where to invest overseas. And this is also the case with Spain, such a relevant country in the world, and which capital, Madrid, is an important city in Europe.

This doesn’t mean that Madrid is the only good place to invest in real estate in Spain, but it’s one of the safest and best choices, as the importance of the capital is undeniable, as well as its population, which is the largest in the Iberian country. All of this puts Madrid as a great city to invest in.

Madrid real estate is in a good position right now

Spain was known as a real estate paradise until 2008, when there was a bubble burst, which made many investors panic, and overall, the construction sector, thriving up to that point, pretty much stopped, making unemployment rates raise and interest in real estate investment fall.

However, Spanish economy is slowly but steadily recovering, real estate prices are getting better, and Madrid is one of the best cities to buy real estate in Spain, as the capital, even with the constant development of cities like Barcelona, continues to be the most important financial city in Spain.

And right now, the position of Madrid for property investors is a very good one, with rental rates increasing, and with a great demand of houses. Also, real estate prices are overall increasing in Spain, and this is also the case in the capital, with the good news that there doesn’t seem to be signals of a new real estate bubble.

Advantages of investing in real estate in Madrid

Depending on your business or your goals when acquiring real estate properties in Spain, property investing in Madrid, may or may not be the absolute best option. But, Madrid is definitely one of the best options to invest in property in Spain, and here are some advantages of doing so:

  • Favorable rental rates

Madrid is a large city, and it is also the government seat, and a city where major Spanish companies continue to stablish their headquarters at. But compared to that, rental units don’t cover the capacity, making it great for generating passive income with real estate in Madrid.

  • Considerably cheaper to invest than in other European major cities

Many major cities in Europe (inside and outside the EU/EEA and Switzerland) are considerable expensive, some of them, such as London, Paris and Moscow, being among the most expensive. While Madrid keep offering great deals, and it is still possible to buy a luxurious house for a relatively low price.

  • A good place to make business

Overall, there are advantages on making the largest city of a country as your place to invest in. For some countries this means the capital, for others it doesn’t. For Spain, Madrid continues to be the most important economic center, and even if deciding to focus in Barcelona, another major economic center in Europe, having headquarters in Madrid is still a very positive move.

Furthermore, according to the ranking of the best cities to invest in real estate in the European Union, Madrid ranks fifth. This is because it offers higher capital growth than other cities.

  • Foreign market.

The foreign market in Madrid has expanded. According to data from the Association of Registrars, in the last year more than 250 investments in real estate in Madrid (purchase and sale) were made by non-EU citizens for more than 500,000 euros per transaction.