Foreigners are increasingly interested in buying and renting a property in Madrid. And their market share has grown significantly in recent months, at least in the luxury segment.
According to the high-end real estate company Engel & Völkers, foreign buyers went from representing 16% of transactions to 25% in the last year.
Therefore, they already buy one of every four premium homes in the capital.
"The energetic internal demand and the gradual return of foreign buyers are keeping Madrid one of the most attractive Spanish cities for investment, where they find great advantages for their investments," explains Sonia Catalán, sales director of Engel & Völkers Madrid.
The real estate agency also detected a change in the profile of foreigners who are more active in the city. The most prominent nationalities are American, Mexican and French, taking the baton from Latin Americans.
"While before many Latin Americans were attracted by the greater political, legal and economic stability than in their home cities, now those who come are citizens of countries where the currency is the dollar," the company explains. The greenback's strength against the euro has allowed them to acquire properties for up to 15% less.
The price of the properties managed by Engel & Völkers in the last year with foreigners has ranged between €250,000 and €5.25 million, although the average cost was €857,000 for homes with a surface area of 119 m2. Most purchases were to enjoy the house rather than as an investment.
"In most cases, clients are looking for a first or second home for their own use rather than as an investment," says Catalán, who explains that "many buy an apartment in the centre for their children who come to Madrid to study or work, although we do have quite a few job transfers too".
In terms of location, the agency notes that the Salamanca district has always been the preferred area for foreigners buying property in Madrid, and although the capital's 'golden mile' continues to attract most of the attention, it has now started to compete with Chamberi, Chamartin and Retiro, areas recently preferred by Americans and Central Europeans.
These are the areas where Engel & Völkers has sold the most homes for over €1 million, with sizes of over 250 m2 and to clients from the other side of the Atlantic, who "are looking for properties in good buildings, with integral refurbishments of excellent quality where design, exclusive materials and open-plan living areas prevail". On the other hand, Asian clients, specifically Chinese and Filipinos, are more inclined towards the Tetuan district.
Foreigners represent 53% of rentals
The return of the foreign client is even more evident in the rental segment. The number of transactions by international clients went from 40% to more than half (53%) of those handled by the real estate company in the last year.
Once again, Americans are the most active foreigners among the rentals mediated by Engel & Völkers, closely followed by French and Italians. And in recent months, the company has detected a growing interest from Colombians.