Madrid may not be the first location you think of when buying a property in Spain. However, experts believe that property in the beautiful capital city could be about to boom on the back of a shortage of homes in the area.
Lack of new build homes for sale in Madrid
Recent research by Asprima and Spanish property firm Tinsa has found that there are just 8,626 new build homes currently for sale in Madrid. These findings come as Madrid property expert Juan Blasco estimates that the capital needs around 50,000 new homes every year. These figures point to a severe shortage of property in the city, sparking a potential boom in prices.
The report urges Spanish property developers to start building more homes in Madrid ‘urgently to avoid a collapse in supply that triggers a surge in prices in the short-term.’
Other experts dispute the figures
Whilst the research points to a shortage of housing, other property experts have questioned the figures. Spanish property guru Mark Stucklin argues that the last report produced by Tinsa and Asprima at the end of 2009 showed that there were 48,000 new homes on the market in Madrid. Spain’s Ministry of Housing figures show that there are 40,500 new homes for sale.
Stucklin says: “When developers have open their mouths in the last few years it’s usually been to say something self-serving or scream for government support, so it’s difficult to see what they are driving at here. But don’t be surprised if we soon hear them arguing for government money to build new homes and avoid a housing shortage. Could it be they are just softening us up?
“Or maybe they are telling the truth and Madrid is soon to suffer an acute housing shortage and price surge. But it’s difficult to image a shortage of newly-built homes in the Madrid area; they have been building like crazy around the city for most of the last decade.”
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