With the crisis many half-finished projects, such as solar premier in large cities that did not advance beyond trade barriers they were left. The current situation, in big cities like Madrid and Barcelona, is quite different. Only in Madrid 30 top-level projects will see the light in the coming months (compared with 9 new developments which were delivered in 2015). With regard to prices, cities such as Madrid, Barcelona, Ibiza, Marbella and Mallorca recorded growths and show an increasing upward trend.
Still, the picture is now living in Madrid for this segment, although the projects have significantly increasing compared to 2015, the supply remains low. We find an absorption rate between 30% and 40%.
Regarding the nationality of the type of customer that demands these properties, either as an investment or as a final product, 70% remains domestic buyer. Latin Americans represent 12% and 8% Europeans. Although it is early to say the actual effect of Brexit in residential investment is expected to leave Madrid benefited seeking investment properties value in a European space of free movement. Usually the customer who buys this product just need funding, but in many cases return to it to leverage part of its purchase and hold cash. Moreover, for banking clients such projects are of great interest.
The type of housing most sought after by these customers has also changed in recent years. In the years of the crisis were the flagship floors three bedrooms, and now houses 150 square meters and four or five bedrooms are sought.
Success in this type of promotion is in a chosen location and a differentiated offering. There is demand for this market, and Madrid is a privileged city Moreover, it should be noted the change in mentality of the current promoter, whose objective is no longer seize every square meter to get the maximum number of homes, but add value.
On the other hand, in Madrid and Barcelona lack developable land, something that can not be improvised overnight.
Our cities are an ideal destination because of its location and level of services to international buyers. We found the perfect time to carry out projects of this caliber also revitalize our economy.