The growing investment interest of Latin Americans in Madrid is notable. During the last ten years, we have seen the evolution in the migration of citizens from countries such as Venezuela, Brazil, Mexico, Ecuador, Peru, Colombia, Argentina and Chile and it seems that this interest is only the beginning of a more pronounced movement.
These citizens have discovered Madrid and have loved the style and quality of life, the security and the variety of options for entertainment. Today, we see them strolling through the main avenues of the city and buying properties in the best neighborhoods.
In general, these are the same people who, a few years ago, had a special interest in buying properties in the United States as a second home and as an investment. This trend has changed due to the migratory difficulties to enter that country, the high costs of living and the prices of homes in cities like Miami, and Latin American investors have decided to explore new destinations, choosing Madrid as the favorite city for being the gateway to Europe.
Madrid offers you a great quality of life at an affordable price. The leisure and cultural alternative is unmatched and the connectivity to other European cities makes it easy to travel between countries and get to know different cultures.
In addition to the wonders that Madrid offers as a city, it also offers great advantages for those who are looking for a second home as an investment and/or an immigration alternative if they wish. This has generated that the demand for residential real estate product in prime areas is growing impressively, taking prices per square meter to new records.
The growth in demand is due to different factors, where all together make a perfect combination so that the decision to buy a flat or invest is easy. Among these factors, the following can be identified:
Economic, political and legal security stability
There is a marked trend that we can identify, the largest amount of investor income from the different countries of Latin America happens when they have a political change in their country. Likewise, this demand increases when the economic situation in your country worsens, there is an unexpected change in stability and legal security and/or when crime and personal security become a problem with a difficult immediate solution.
Quality of life and entertainment alternatives
Madrid offers a great quality of life through its offer of restaurants, bars, museums, exhibitions and cultural events of art and fashion. Likewise, the prices in general are relatively cheap compared to the most prestigious European capitals in this sector, which allows a greater influx and incentive to visit these places.
Language
One of the great advantages that Latin Americans find in Spain is that they share the same language of origin. It is much easier for them to communicate and understand how to operate in the city.
Inclusive migration policy
The European Union has maintained an inclusive migration policy, facilitating the visit of tourists and immigrants. In many cases, American citizens do not need a visa to enter the European Union which makes the process much easier and people feel welcome to visit.
Possibility of obtaining residency and citizenship
Spain offers what they call the “golden visa” (Golden Visa), it is a program that was created to encourage investments from non-EU foreigners who want to move to Spain and make a significant investment of capital, thus obtaining the possibility to reside and work legally anywhere in the country they choose. Even after two years of residing in Spain, you can opt to obtain a Spanish passport.
pioneer health system
Another great advantage is that Spain has a first-world health system at affordable prices. Many times the prices of medicines are a fraction of the price in the United States or their own countries.
Connectivity that translates into prices
Madrid offers great connectivity with flights to Latin America, the United States and the rest of Europe. There are a large number of daily flights to the most important cities in these regions, which means that there is a great offer and cheap prices to travel. Many times traveling to Spain costs the same as traveling between the different American countries. Likewise, the connectivity by train to the rest of Spain makes transfers very easy and fast.
The recent parity of the euro and the US dollar
The euro is at its weakest moment in the last 20 years. This makes the purchasing power of US dollar-based economies much higher than it has been in recent years. The American perception is that Europe at the moment is at a “discount”.
Low interest rates and easy to obtain mortgages
Until July of this year, the interest rates for the acquisition of real estate in Spain continue to be very attractive. The current offer of rates is around 2.5% fixed interest for 15 years and there is a possibility for foreigners to obtain mortgage loans of this type.
Real estate prices still relatively cheap
Madrid, although it may seem expensive, is still relatively cheap in terms of quality of life and the real estate offer. Demand is growing and now the biggest problem is the stock of homes for sale, which has caused the price per square meter to skyrocket in certain areas such as Barrio Salamanca, Chamberí and Justicia, areas that are most desired by foreigners. . However, when you compare these prices with a city like Miami, Paris or London, the prices in terms of square meters are still very attractive for these buyers.
As can be seen, there are many factors that have come together to make a perfect combination for Madrid to continue to evolve and very soon become the capital of real estate investment for Latin Americans, a throne that Miami had until before the pandemic. This city, in contrast, has become more expensive than in cities like New York or San Francisco, where a square meter has already touched up to $40,000 for a luxury residential property. Likewise, due to generalized inflation and the influx of people with greater purchasing power from New York, Chicago and San Francisco, the prices of restaurants and all services have also increased significantly. Reason why Latin Americans look for alternatives. And Madrid, in this perfect context, is positioned to become the new second home for Latin Americans.
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