While there can be no denying the fact that the economy in Spain is going through some hard times, and the property market with it. However, as is often the case for a country whose economy is struggling, the capital city Madrid is bucking the trend. A recent survey issued by the National Institute of Statistics show that despite a decline of around 2.5% over the year and throughout the country, Madrid remains the only city. where property prices and rental charges at actually on the increase.
However, property owners in the city are realizing that in order to catch a share of the potential market in the lucrative monthly rental for the student population that focuses in and around Madrid the need to present their properties to the highest level and through a professional property management company. That’s why the recent opening of an office of ShMadrid has created so much interest, following the many years of success managing rental properties in Barcelona.
A fact that will go a long way to strengthening the decision of people who buy property for rental is the fact that the number of construction starts throughout Spain, including Madrid is falling rapidly meaning that they will soon be a major upsurge in demand for rental properties and good quality ones at that. Once again statistics showing that in the peripheral regions of Spain, there is a glut of property for sale or for rental, especially around the city of Valencia and the regions, including Murcia Cantabria, and Andalucía.
With Madrid being the centre of business, tourism, sport and culture for the country, then property owners can take comfort in the fact that previous history has shown that in property slumps of the late seventies and early nineties, Madrid held their own in the property market much better than any other city or region of Spain.
Another factor that must be taken into account when looking at the cost effectiveness issue relating to the issue of monthly rentals for student in Madrid is that once again the city continue to attract foreign visitors at a much higher level than having the past, whereas other traditional areas that attracted incoming tourism, particularly the islands of , Malaga, Majorca and Alicante, which have experienced a considerable slump in incoming tourism, down by almost 20%.
For the meantime it looks like Madrid will be still a sound place to take advantage of its continuing opportunities in the long and short term rental market.