The real estate market has a great profitability for long-term investment, especially if we are talking about homes for rent, but if we want to get a good investment we must take into several parameters, such as location, market demand, price ... etc. Today we are going to focus on the neighbourhoods of the Spanish capital to study which are the key sites to invest correctly.
It is necessary to review the most expensive and cheap areas of the Madrid community to carry out a good study of the market. The statistics of Spainhouses.net highlight the southern areas as the cheapest, with an average price between € 139,000 and € 253,000, based on homes for sale. Likewise, the annual rental income of these neighbourhoods such as Usera, Puente de Vallecas, Villaverde and Vicálvaro, is above 8%, outstanding data for the third quarter of 2017.
Specifically, the area of Ambroz, in Vicálvaro offers good profitability and also a high demand, the average price of this area is € 181,000, with an average price per square meter of € 1,362. In addition, there is currently a housing construction boom in Ambroz neighbourhood, El Cañaveral, which is located in the spotlight of new investments, it's an area with a great appeal for young families who search for new and affordable housing.
Even so the most profitable district, according to a study conducted by Invermax, is Villaverde, with 8.65% of profitable, it's consolidated as a very economical area to buy housing. But in this neighbourhood, the risk of don't obtain reliable tenants is quite high and it doesn't guarantee the collection of the rents.
If you have a high investment power, a suitable area to invest is Moncloa, in the heart of the city and with the highest demand in the community, with an average price per home of € 300,000. Although the gross profitability is 5.25%, it's an area with high commercial movement, therefore the investor will obtain absolute security of regarding the liquidity of the assets and a constant demand from tenants.
The districts such as Usera, Carabanchel and La Latina maintain the profitability of 6.86%, 6.55% and 6.45% respectively, due to they are characterized as consolidated neighbourhoods with good demand. The profitability of housing in this area will increase if major roads are chosen.
The average price per area of the metropolitan area of Madrid is as follows:
- Villaverde: € 135.000
- Carabanchel: € 155.562
- Ciudad Lineal: € 163.33
- Usera: € 174.600
- Vicálvaro: € 181.200
- Moratalaz: € 223. 158
- Latina: € 269.00
- Villa de Vallecas: € 320.000
Credits: expansion.com/ elmundo.es
You can know the state of the market in the housing statistics of spainhouses.net