Real estate investments in Madrid

Buying a property in Madrid

The amount of foreign real estate investment in Madrid, be it for residential use or as an investment has grown exponentially over the last few years, due fundamentally to economic stability.

Spain has become one of the countries within the European Union that is experiencing more economic growth, and parallel to this, real estate investments from countries such as Mexico, Venezuela, Colombia, England and the United States are also growing.

The first step in buying a property is to define what your needs and/or interests are.

The main reason people invest in the Spanish capital is to have a second home. The second reason is to invest, given that currently in Madrid’s real estate market it is possible to find good properties offering high profitability and good chances of experiencing an appreciation in value, since the market is in constant growth.

Moreover, we must say that Madrid is one of the most important European capitals, but comparatively much more affordable than most, and for this reason it is also one of the cities with the highest investment rates, particularly in real estate.

This is a good moment to invest!

If you decide to make a real estate investment in Spain, you should bear in mind that Madid, being the capital, is where you will find the headquarters of the main financial institutions, as well as the most innovative companies, together with multinationals, and last but not least, it is at the centre of political and administrative power.

The most important universities in our country are in Madrid. It has big infrastructure, good transport connections, both national and international. It is the epicentre of national business and commerce, in addition to a growing services sector whose turnover has increased due to tourism.

Madrid is a very welcoming city, and open to the whole world… it offers its dwellers and all its visitors a great assortment of cultural activities, ranging from art exhibitions at the best museums, to theatre and opera of international prestige, together with a great variety of other leisure activities such as cinemas. You will also find the most exclusive shops and internationally renowned and prestigious brands, in the famous “Milla de Oro” (Golden Mile) and let us not forget the great culinary selections on offer.

Another of Madrid’s strong points is the safety of its streets.  One of city dwellers and visitors’ favourite activities is to take a stroll around the city and its streets, to discover the city’s most symbolic places, or to walk or exercise in the Retiro Park and finish at the Templo de Debod to admire its wonderful sunsets.

Types of properties to buy

Apartments / flats

This is the most sought-after type of property. Flats are traditionally the cornerstone of the Spanish real estate market. They are recommended for families with children and pets as well as for single people, couples with no children, etc. Moreover, they are perfect for spending a short spell in the capital, without having to invest large amounts on maintenance and the tax impact is low.

Luxury flats in Madrid can be told apart at a glance. They all share a set of common characteristics that raise their market value, such as their exclusive locations, which are central but calm, their high-quality architecture, square footage and upscale style. As previously mentioned, in areas where you can also enjoy a variety of cultural activities, the best restaurants, and above all a safe environment.

Penthouses

Penthouse buyers are people who wish to live in the big city without giving up outdoor living space.  They usually have an ample terrace in which you can have a garden, have parties at sunset and enjoy the best views of the city. Inside we find bright and open spaces.

These types of properties are very much in demand for single people, young couples, and small families.

Main investment areas in Madrid

Prices can vary in relation to different parameters, such as neighbourhood, location, if it has been remodelled or not, the storey it’s on, square footage, etc.

The most sought-after areas are currently:

Key aspects to consider when buying a property in Madrid.

We have prepared some advice and tips which will certainly be of great service to those who wish to buy a property in Madrid.

Documentation necessary for foreigners buying property in Madrid.

To carry out the legal formalities needed to buy a property, foreigners must first obtain a NIE (Foreigners’ Identification Number), which serves as ID before public authorities.

If you are in Spain the place to request your NIE is the Oficina de Extranjeria, if you are abroad, you can do so at the Spanish Embassy or Consulate.

• Requests for a NIE made in Spain for economic, social, or professional reasons will be accepted when done either personally or by a legal representative.
• Requests made before Diplomatic Missions or Consular Offices, located in the country of origin or residency of the foreigner making the request, corresponding to the residency jurisdiction.

Additionally, the following documents must be submitted:

• Official form EX-15 duly filled in and signed by the foreigner
• Original and copy of the entire passport or identity document of the interested party.
• A letter which explains the social, economic, or professional reasons that form the basis for request of a NIE.
• Official form 790-012, which confirms payment of the established fee, which must be paid at the Consulate via Money order.
• Original and one copy of the passport’s biographical data page in which the holder’s information is contained. In the case of citizens of the European Union, it is possible to do so with a copy of the National Identity Card.

Legal Advice:

It is important to rely on good legal advice during the purchase process.

At UNICA Inmobiliaria we have agreements with various law firms and professionals within the real estate sector, in different countries, such as Mexico, Venezuela, Colombia, England and the United States.

Our Real Estate Consultants have extensive experience and will advise you throughout the entire process.

Mortgages and Loans

There are different financial institutions, and each have their own terms, reason for which it is advisable to let professionals handle it.

At UNICA Inmobiliaria we will inform you of the most advantageous option for you.

The most important points to consider when choosing your mortgage are the interest rates and the amount of the loan that must be paid.

Sale deeds

The signing of the deed is the formal handover of the property, in which the keys are given, and the outstanding amount of the purchase price is paid, either by the purchaser or by the financial/mortgage institution/bank.

An opportunity to invest

Spain Golden Visa properties

The Spain Golden Visa is the granting of residency permits in Spain, in exchange for a economic investment made in our country.

The requirements to request it are:

• To acquire Public debt for worth 2,000,000€ or more, or a bank deposit for an amount greater than 1,000,000€.
• To establish a Business Project (it can be in the real estate sector) that must be considered of general interest and generate new employment positions.
• To make a real estate investment in Spain, for a value of over 500,000€.
• Plan a real estate investment that has a socioeconomic impact in the geographical areas in which it is made.

What is UNICA Inmobiliaria’s role?

1. To detect the investor’s needs
2. To inform about the requirements for the Golden Visa
3. To provide business advice
4. To lend legal support
5. To carry out and manage the administrative proceedings
6. We have a team of national advisors and international collaborators such as law firms and agencies in countries of origin.

Current state of the real estate market and outlook for the future

The year 2015 was labelled the starting point in resuming growth in the real estate market.

Since then, we have been experiencing an increase in the amount property purchases.

At UNICA Inmobiliaria we have observed that foreign buyers prefer to live in the more noble areas of the capital, such as the Salamanca-Recoletos neighbourhood, Retiro-Jeronimos, Chamberi-Almagro and, lastly, Chamartin-Viso.