Buying a house in Madrid is the dream of many people who wish to settle in the capital of Spain. Likewise, it is also what countless investors are looking for in order to make profits from the money they have been saving. However, the situation of the resale market is not the most ideal since prices are very high. The solution is to buy off plan.
Buying new build property, at the moment, is 15% cheaper than buying a resale home. This is due, fundamentally, to the reluctance that potential buyers are showing when using this formula due to the instability experienced during the years of the crisis. As there is no escaping this situation, during the time there were lots of properties being built but some never completed and the developers ended up getting sued as a result.
Fortunately, however, that is not the current situation with new build properties. Although there is still some push in this market, the truth is that more and more companies are offering quality homes at extremely competitive prices. The only set-back is having to wait for the construction to be fully completed before collecting the keys.
Generally, the average waiting time for those who choose to buy off plan properties is between 18 and 24 months. It is, therefore, important to agree the price with the real estate company in advance and close the deal without it being subject to variables. It should be noted that, according to the current market trend, the value of new build properties can increase between 5% and 7% each year. This can be perceived as a drawback, but also as an excellent investment opportunity. By the time the keys are handed over to the new owner, the property can be worth up to 20% more than when it was purchased.
In addition, taking into account the difficulties for builders to sell all the newly built homes, it is normal to apply incentives of between 5% and 10% to those first-time buyers. Likewise, the possibility of contracting private insurance that covers any personal contingency during the course of the construction is also being offered to buyers. These usually refer to the buyer's unexpected death or incapacity, in which case the debt would be paid by the insurer and the property would be passed on to his or her family.
In short, if you are interested in buying a property in Madrid, the new build developments are, at the moment, an excellent opportunity. Visit Engel & Völkers website and see for yourself.