Euro Turmoil Lures Foreign Investors

Foreign investors have been purchasing properties in Salamanca Barrio of Madrid, which is one of the most exclusive areas in the city. Salamanca has majestic homes as well as smaller residential units in its interior section. Four years ago, during the height of the building boom, one could sell a poor quality basement flat for 7,000 euros per square meter.  However, things have changed, and an average price per square meter in the main areas of Salamanca is around 5,000 euros at this time.

Foreign investors from Venezuela, Mexico as well as Central Europe have been purchasing properties, mostly by paying cash. The transactions are closed in three days when cash is exchanged.  99% of homes being sold are inheritances, where the owners are obligated to sell because they can not afford to either maintain or renovate them.  In addition, they do not have sufficient liquidity. Very little new construction is taking place at this time.

Euro agitación atrae inversionistas: Inversionistas de Venezuela, México, así como Europa Central han sido comprando propiedades, principalmente por pago en efectivo. Las transacciones se cierran en tres días cuando se intercambia dinero en efectivo.  99% de las viviendas vendidas son herencias, donde los propietarios están obligados a vender porque no pueden permitirse mantener o renovarles.  Además, no tienen liquidez suficiente. Muy poco de nueva construcción está teniendo lugar en este momento. Aquí está un breve vídeo en Barrio de Salamanca de Madrid:

Here is a brief video on Salamanca Barrio of Madrid:



Reference: The Salamanca “Barrio” of Madrid Offers Exclusivity and Good Prices, El Mundo, March 14, 2012

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