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The luxury housing market: Eduardo Cristenti interview, Team Leader Centro

The luxury housing market

On Thursday 22nd September, the journalist, Meli Torres, will interview our area director, Eduardo Crisenti for Capital Radio's Real Estate Investment programme. 

  1. What does luxury mean to you?

    I think it would be nice to compare luxury with art, as each client (just like art) has his/her own vision of this. Engel & Völkers Madrid tries to serve our customers according to their own concept of luxury.

  2. How do you see the prospects for the luxury market in Madrid?

    In the European luxury property market, Madrid is the third city that focuses on such investment in terms of infrastructure and logistics. We have many trendy and fashionable districts such as, Salesas and Justicia, which are part of the classic Salamanca neighbourhood. 

  3. Given the shortage of luxury properties on offer, what will happen if such properties are no longer found for sale?

    I believe that the luxury property shortage is mainly due to the high demand seen in recent years. As new areas appear, home renovations increase further. At Engel & Völkers, we have seen traditional and historic neighbourhoods such as Embajadores and Arganzuela going through a total makeover, resulting in higher property resale value, which makes it more attractive for the investor. 

  4. How profitable is the luxury property market for the investor? 

    During the month of August, we experienced an average return of 6 per cent on sales and long-term rentals. If we mention holiday rentals, we can safely say that our profits were even higher.

  5. Is the luxury property market still attracting the domestic investors in Madrid or are more foreign buyers investing in such properties? 

    Around 20 per cent of our sales are made to overseas buyers. This is because Engel & Völkers is an international company and has many offices abroad. Most of our foreign buyers don't just invest in properties to make a profit, but they also want to use them as their holiday accommodation, hence the reason location is so important to them. If we make an example, the newly constructed homes in prime areas like the Salamanca district are most in demand by Latin American clients. The Chinese customers, however, prefer the centre of the city and are attracted by the other benefits of buying in Spain, such as obtaining the Golden Card.

Madrid - el-mercado-inmobiliario-de-lujo-entrevista-eduardo-crisendi.jpg

    6. Is it the right time to buy in Madrid?

We live in a stabilising time in Madrid, with a gradual rebound in the property market. Currently, we have experienced a 7 per cent return in the central area of the city.

   7. Are there any opportunities for the foreign investors to buy properties outside of Madrid? 

Mainly in cities like Marbella, Mallorca, Valencia and Barcelona. Spain in general, has always been focusing on fulfilling the needs of international investors who are seeking luxury homes. The properties we have in Engel & Völkers are typically sold within 90 or even 60 days. I can make an example right now by mentioning the sale of the Prince's mansion in Marbella. 

    8. Will there be room for the luxury SOCIMI market?

Of course, these investment companies can offer investors an opportunity to make stable profits in urban rentals. We currently have three SOCIMIs promotions in new constructions in Madrid.

    9. Could you give some advice to investors who are looking to invest in this market? 

The main advice that I would give them is to come and talk to a professional real estate agent rather than listen to other people's opinion about the property market in Spain. Engel & Völkers offers top-notch services that include property sales as well as advice on business opportunities and investments in the safest areas of the country.

    If you wish, you can listen to the full interview here.

    Engel & Völkers

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

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