There has been a sharp increase in foreign buyers for Madrid property since 2014. With it being the 3rd biggest city in Europe and having the 2nd largest airport, it’s no surprise that investors are flocking here, seeking good returns on their property purchases. In fact, 75% of our clients buying in Madrid in 2019 were purchasing for investment purposes. The nationality and fiscal residence of these clients varied from Israelis, North and South Americans, Swiss, Hong Kongese, Indian, Dutch, British and many more, making this a hotspot for international clients.
Prior to the global financial crisis of 2007-08 and up until around 2014, we at Mortgage Direct saw very few clients wanting to buy in Madrid for holiday use. In the last 5 years or so, 25% of our clients are buying here for this purpose alone. This is not surprising considering what Madrid has to offer, which includes the elegant boulevards, baroque Royal Palace, beautiful and pristine public parks, boutique shops, museums and fine dining restaurants. There is something for everyone. With the high-speed rail service (AVE), you can be in the charming city of Valencia in around 1 hour and 40 minutes and in the vibrant city of Barcelona in around 2 hours and 30 minutes.
We have arranged many mortgages for clients buying in Madrid and we see the number increasing year-on-year. Compared to other European capital cities, such as Paris and London, prices are around 35% cheaper making it an attractive place to buy whatever the purpose and, let’s not forget, the climate is significantly better too!
Exclusive mortgage conditions
With the volume of business we process in the Spain, we are able to negotiate the very best conditions with our banking partners; far better than those that may be available to our clients should they go to the banks directly. In fact, we have been achieving resident interest rates (for our non-resident clients) which is unheard of!
You will benefit significantly by using our service and this is especially important in Spain right now, following the introduction of the new mortgage legislation whereby some banks are no longer offering certain fixed rate products to clients earning in currencies other than Euros. Additionally, for significant investments, a mortgage may help offset a wealth tax liability.
Mortgage process for Madrid property buyers
Once the mortgage is approved, the process remains very local to where your new Madrid property is located. We have local representatives who know the areas inside out; we also work with local lawyers and valuation companies (all approved by the Bank of Spain) to ensure our clients receive the very best service all the way through to completion. On completion day, a representative of the local bank branch will sign the mortgage on behalf of the bank and our clients can continue to manage their everyday banking requirements locally thereafter or online.
We look forward to assisting you throughout the entire process, from start to finish, so that you can purchase your new property in Spain.