Madrid
Latest property prices and demographic trends
Demography is one of the driving factors of the property market in order to assess the needs of properties…and to be able to predict the market. In this article, we introduce some figures about demography forecast in Madrid and current prices in the Spanish capital that may help property investors.
According to the Regional Statistics Institute in Madrid, the population in residential areas outside the Spanish capital will rise by 78% by the year 2017. In the surrounding area of Madrid, the population will grow by 46% whereas in the city, the growth will be equivalent to 14.8%.
In real numbers, the estimation is that the population will grow by 709,780 inhabitants to reach a total number of 7,211,497.
Such a growth outside the city centre is related to the property prices’ trend and affordability, according to the mentioned Institute. The city centre becomes too expensive and inhabitants tend to find more affordable housing outside the centre. Also, infrastructure improvements and changes and new trends in the job market are important.
Main locations in cities have always been prime property investments. The centre of Madrid is definitely a prime area. Also, the suburbs could be a good property investment because the demographic growth prospect will ensure the demand. It could be a good idea to search the right investment in the city.
Property prices in Madrid, January 2011
The Spanish property valuation company, Sociedad de Tasación SA, has stated that, in 2010, property prices in Madrid did fall an average of 2.5% compared with 2009 property prices. The average price per square metre currently sits at €3,290 . According to Sociedad de Tasación SA, the 2.5% fall is similar to the national property prices drop in 2010.
This is the breakdown of Madrid prices in Euros per borough according to Sociedad de Tasación SA, published yesterday on idealista.com:
City Centre: 4,247
Arganzuela: 3,720
Retiro: 3,986
Salamanca: 5,615
Chamartin: 4,427
Tetuan: 3,447
Chamberi: 4,888
Fuencarral-Pardo: 3,350
Moncloa-Aravaca: 4,176
Latina: 2,899
Carabanchel: 2,842
Usera: 2,599
Puente Vallecas: 2,723
Ciudad Lineal: 3,714
Hortaleza: 3,618
Villaverde: 2,425
Villa de Vallecas: 2,608
Vicalvaro: 2,656
San Blas: 2,796
Barajas: 2,993
By Daniel Talavera of The Spanish Brick
Also in this section
- Special property schemes: Part-ownership, leaseback and timesharing
- Utilities in Spain: Electricy, gas and water
- Buy to let in Spain: Lavapies is one of the best places to buy to let in Madrid
- Quick legal guide: How to buy an apartment in Spain in court auctions
- Raising money against the clock: Dramatic property price drops
- Spanish Property market: Desperately fishing buyers and investors abroad
- Valencia: Home owners have dropped property prices by 21.6%
- Madrid: Latest property prices and demographic trends
- Spanish property market in 2011: 10 likely key facts
- The Euro Crisis: Spain Under Threat
- Renting in Spain: Renting whole a flat or bedrooms
- Spanish property nightmare: Lessons from British expats
- Quick legal guide: Before you buy an apartment in Spain
- Spanish rentals: Twelve tips
- The Spanish property market: Property market gets more aggressive
- When property developers go bust: Some tips
- Mortgages: How to get a mortgage in Spain
- Renting out a Spanish property: Lessons learned
- Property developers: What if your property developer goes bust?
- Who is looking after your interest?: Professional advice is imperative
