25 Apr In Madrid there are no giveaways
“The sale of homes rises 18.1% ..”, “Houses rise 9% in Madrid ..”, “prices will continue to rise …”. When we see this news in the media, the first thing we wonder is “what is happening in Madrid” and the second “best buy now before prices rise more and so I still get buy at a good price.”
Yes and no. Yes, prices are rising in Madrid, but not in all areas. Prices rise because demand was on hold, because it is easier to get financing and because other investment alternatives aren’t as profitable. And with these conclusions on the reasons behind the activation of the real estate market in Madrid some remarks to be made.
The figures speak of rises in all areas of Madrid, but there are undoubtedly areas where this is most accused, the areas most demanded to live or to rent. Central, well communicated areas, in newly converted neighborhoods, with young population and with properties with updating potential. A clear example is Chamberí, from Trafalgar to Ríos Rosas passing through Almagro, of course. And obviously Malasaña, Cortes or Retiro.
And as well as some areas having a concentrated demand, there is also a type of housing that is the most demanded. A house of 80-100 m2, with 2 or 3 bedrooms, 1 or 2 bathrooms, bright and above first floor.
Well we already have the equation, neighborhood + dimension + special features = Defined price. And this price is difficult to change, it is set by the market. We can search 24 hours and 30 days of the month but it will be difficult to find a product that doesn’t fit into this equation. And if we find it, it is advisable to check the state of the house, facilities, register information, characteristics of the building or possible limitations to the sale.
There are no mistakes In selling prices, no one gets confused when setting them up whatever the hurry they may have to sell, they may be more or less negotiable, but if they stand out for being inferior to the reference prices they’ll be a reason for that. We may be interested in buying under these conditions, we will be buying at a lower price than the market, but it will not be a bargain because I’ll be giving up one or more of my initial conditions.
In Madrid many houses are sold, but they are not given away. In the most demanded areas of Madrid there are no giveaways.