Madrid is the third world destination in luxury real estate investment in 2019
The indicator indicates the destinations that “more growth opportunities will register” over a year
The Plaza Mayor of Madrid. / WIKIMEDIA
Madrid will be the third city in the world that will receive the most investment in the luxury real estate market in 2019, according to the ‘Destinations to watch’ index presented Thursday by the Barnes company as part of the company’s annual report ‘Global Property Handbook’.
This indicator indicates those destinations that “more growth opportunities will register” throughout the year, a list in which the capital is below Lisbon and Oporto , which occupy the first two positions.
Likewise, Madrid enters for the first time in the first ten positions of the ‘Top 50 cities index’ of 2018, which reflects the cities that more investment hoarded during the past year in this sector.
“Financial and emotional” elements
These indicators analyze “both financial and emotional elements” , since the profile of the buyer of luxury real estate stands out for making purchases with a “passional” component but always with a strategy “similar to that of buying a business”.
The presentation of the report ” Barnes Global Property Handbook ”, which took place at the Wellington Hotel, was attended by the world president of the Barnes group , Thibault de Saint Vincent; the director of the company’s area in Madrid, Anna Molgó; and the artistic director of the company, Rodrigo Uhart.
Molgó stressed that in the case of Madrid, Latin American customers have the most presence, especially “Mexicans and Venezuelans, because of the political situation in both countries and the cultural ties that bind them to Spain.”
The majority of those interested are Latin Americans, especially from Mexico and Venezuela because of the local political situation, as well as cultural ties to Spain. “In our case around 70% of our clients are from Latin America and we have witnessed a strong increase in Mexico with the arrival of López Obrador – the new president of the country – while that of Venezuela has stopped a bit more”, has pointed Molgó.
Differences by neighborhoods
Thus, the head of the company in the capital, has specified that the areas that generate greater interest are the neighborhoods of Salamanca and Chamberí ; and has emphasized the Recoletos area. He explained that his portfolio seeks, above all, housing between 800,000 and 3 million euros and that in the city the price per square meter will increase by two percent throughout 2019, so it will be around 7,000 euros per square meter. Barnes currently has 180 homes in Madrid.
Asked about the effect of Royal Decree 7/2019 on urgent measures regarding rental and housing, approved by the Central Government, Molgó has indicated that “at the moment” they have not noticed changes in their market.
Barcelona disappears from the index
Finally, he explained that the destinations of Barcelona and Madrid “are totally complementary “, since the main profiles are different. The capital city does not appear in any of the two indexes of the company, after it fell from the main index in 2017 from the 20th position. “The main problem is political instability , which often frightens investors,” he said. explained the global president of the company.
This uncertainty has also affected the position of London , which falls in 2018 to sixth place, due to the effects of Brexit , which has caused the price of luxury housing to fall by 30% in the last three years. Paris has collected these customers, while Madrid has not been almost affected “because it is not a city focused on high finance” as is the case of the capital of the United Kingdom, has indicated Thibault de Saint Vincent.
The other area of Spain that appears in this report is the Balearic Islands , which is ranked third in the most attractive coastal destinations for the luxury real estate market.
Thus, company executives have informed that they will increase their presence in the capital , through a new office, and that they intend to establish delegations soon in Andalusia (Marbella and Seville), Valencia, Baleares (Palma de Mallorca and Ibiza), and in Tenerife.
Source: El Periodico
Filed under: Headlines by Alec Reimon
No Comments »