The property industry is currently undergoing a transformation process driven by a favorable environment. A highly profitable market, along with low property prices, have drawn many sovereign wealth and pension funds, as well as investment management firms.
The local real estate market is currently consolidating its slow recovery after a long period of economic crisis. The Spanish economy recovery has had a positive impact on the demand for housing units and the revaluation of residential properties, as well as the consolidation of financing to property developers and the proliferation of mortgage loans to individual home owners.
Today, Madrid is one of the most attractive cities for real estate investors and potential clients that consider Spain’s Capital City to be a good market to establish and expand their businesses. Madrid is undergoing a process of urban restoration, as a result of the many urban development operations that are currently underway.
Moreover, recent studies confirm this trend, which is mainly driven by the increasing demand for improved housing units and the acquisition of real estate property as an investment opportunity, among other factors. Therefore, factors such as higher house prices, increasing demand for real estate property -comparable to the market conditions back in 2009- high rate of mortgage loan approvals, and decreasing real estate offerings, all play their part in the resurgence of the property industry, which has not shown signs of recovery for many years until now.
Our deep understanding of the current and future challenges that this industry’s companies have to face allows us to provide personalized, practical and committed legal services.