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Attention investors, rental prices are rising in Madrid

Rental prices have been rising at a dizzying pace during the last few months. Although this is visible in practically all the cities of Spain, the truth is that in some the increase in the price is more pressing than in others. This is the case, for example, in Madrid and Barcelona. In fact, in this last one, the rental price is 20% more expensive than in 2007, year of the real estate bubble in which, until this moment, they had reached their maximum level.

If you are thinking of investing in real estate, this is an opportunity you should not miss out on. If you have enough capital or at least the down payment for a mortgage, you are on the right path. Keep in mind that since the crisis years have passed, rental prices have grown by approximately 60%.



We mentioned Barcelona as an example, ​​which is experiencing rental price increases. But if we talk about Madrid, it is possible to state that, today, tenants pay an average of 7.2% more rent every month when compared to 2007, which was a record breaking year. In fact, it is possible to predict that every year there will be a guaranteed rise of between 10% and 12%.



The key lies in the fact that, at the moment, the property rental market is skyrocketing, but the sales and purchases are not doing as well as they should. After the hardest years of the crisis, there are many couples, families and young people who, at the time of going to live alone, do not have a clear option to buy, either because of the instability of their employment, for fear of a mortgage of 25 or 30 years or, directly, for the refusal of the banks to grant them mortgages.


Madrid - Alerta inversores, suben los precios del alquiler en Madrid

Foto: © Engel & Völkers Madrid


As long as this trend does not change in the capital of Spain, investing in real estate and then renting it out will remain a good option. In addition, it should be noted that, at the moment, demand is much higher than supply, which means that the time it takes for the properties to be rented is extremely low. In fact, in most cases, within less than a week after the property is advertised, new tenants are found and the owner then gets a regular income from the property.

Another option for those who can buy a property in Madrid as an investment is to consider holiday rentals. This means, on the one hand, a greater number of tenants and, on the other, a greater legal flexibility, but also many more benefits in the short term. In fact, the choice of renting out a home for a few days or weeks causes prices to skyrocket.

If you are interested in buying a home in Madrid and investing in real estate, log on to the Engel & Völkers website. We can advise you and help you find the most suitable property for your needs.

Engel & Völkers

Madrid
Génova, 27 - 5th floor
28004 Madrid
Spain
Phone
+34 91 277 45 00

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