The strong and positive evolution of the real estate sector, especially in large cities such as Madrid, has provided a major boost to investment in property that, far from giving in to its appeal, seems to increase every day. The evolution of the sector, especially in the most exclusive neighbourhoods of the big cities and in the superior qualities of the properties, tends to result in the appreciation of the residential properties' values. That is why buying a property in Madrid is currently one of the best investments when other alternatives such as mutual funds or savings are going through bad times because of the record low interest rates.
The reasons for the property market's rebound in our country are attributed to the appearance of various factors, such as the recovery of employment and economic growth. Clearly, the flexibility introduced by the policies of the international central banks has also made a positive contribution, since it has favoured the possibility of better financing conditions, not only for individuals but also for businesses.
The trend seems solid and the statistical data provided by the National Institute of Statistics (INE) confirms this. According to this source, during 2016 there were almost 404,000 buying-selling transactions that were formalised throughout Spain and the forecasts established for this year will more than likely exceed that figure. The result of this trend is that, according to the same INE data, property demand was increased by 5.3% during the first three months of this year, 2017 and, at the top of these increases, Madrid was in the lead.
Without doubt, buying a property in Madrid has great attractions. But opportunities should be used to the fullest whenever they come by. This is because, in the same way that properties will continue going up in value, the forecasts regarding mortgage approvals point towards an increase in purchasing homes, along with the application of more restrictive conditions.
In this case, the firm, Moody's, has stated in its latest report that times of low mortgage interest rates have an expiration date and, at a time not too far away, the Euribor will have to rise. The banking war for offering the best conditions on mortgages and attracting clients shows signs of having come to an end. Variable rates have no way of lowering their spreads at a time when the Euribor is below zero and fixed mortgages have worsened their behaviour. Mortgages that were previously offered as fixed rate are no longer available for the same rates, while the new rates are rising.
If you are planning to buy a home in Madrid, now is the time. The best option is to visit the offices of Engel & Völkers, the prestigious real estate company with extensive international experience. This company offers you an extensive portfolio with the best properties of all characteristics, available in the most exclusive areas of the capital.