Last week at the facilities of ASPRIMA, the Association of Real Estate Developers in Madrid, the first breakfast sponsored by the real estate agency, Engel & Völkers, was held.
During this formal breakfast meeting, the Engel & Völkers' new construction sales director, Óscar Larrea, explained to the attendees the characteristics of the 21st century customers who opt for newly built properties. He also talked about how the investors' specifications and demands as well as the new appearance of small investors have changed when it comes to buying a property.
With regards to the rental market, the Bank of Spain, which updates the figure with the rental CPI, calculates that if the average annual gross return is added to the 12-month capital gains, it turns out that buying a property to rent out equals to 11.4% (a year ago it was 8.8%). Madrid is the city that boasts the greatest demand: 28% of those seeking a property for rent do so in the capital, despite the fact that the average rental price has already reached 1,137 euros per month.
Larrea clarified that, unlike what has been published in recent weeks, the lack of rental property has nothing to do with the increase in holiday rentals, but with the shortage of newly built homes in Madrid and Barcelona