Madrid
Buy house or flat in Madrid
Housing Market in Madrid
The Spanish economy is growing more than expected a year ago. In fact, real states researches have just shown that the prices gradually grew 3.3% in 2017 and announced a rise of its forecasts for the Spanish economic growth of 2.8% in 2018.
This forecast growth can be compared with the EU, which is and expects to be at 2.3% and 2.1% respectively.
Consequently, the average price of a flat in Madrid now costs €3,175 per square metre.
How to Search for Real Estate in Spain
Online Listing
Among the most popular webpages you can find:
Newspapers
Newspapers are also a useful source when searching for real estates. Most of the ads can be found in the main Spanish publications print versions:
Estate Agents in Madrid
When looking for a flat/house to buy, you might want to hire a real estate agent in order to save you a lot of time and worry.
This agent will assist you on your search regarding your criteria, accompany you to the viewings that can fit your wishes, help you with all bureaucracy and necessary documents for signing the contract and, if needed, also consult on options for receiving a credit.
The price of their services can vary from one real estate agent to another. Consequently it is necessary to discuss it previously and sign a contract. The agent is paid when the contract has been signed between the tenant and the landlord.
Spainhouses.net published more than 280 results for Estate Agents offices in Madrid
How to Buy Property in Madrid
When buying a property, you will choose a solicitor who will act as a middleman for both parties. The recommended procedure to look for a property and acquire it is:
- Find out what you can afford
- Get a solicitor/lawyer
- Find a property you like and can afford: You can look for it online, throughout auctioneers or estate agents.
- Get a survey regarding any defects in a property
- Get mortgage approval
- Sign the contract for sale: The buyer will have to pay transfer tax and stamp tax (Impuesto de transmisiones patrimoniales y actos jurídicos documentados)
Ask the seller for a "nota simple informativa del Registro de la Propiedad". It will check that the property belongs effectively to the seller, check whether it's free of debts and will give a full description of the property.
When seller and buyer agree on terms, and before the public deed is ready, there will be a contract in place. It's usually a simple document in which the seller expresses his intent to transfer the property to the buyer, and vice and versa. After signing the document, if the buyer withdraws, they will lose their deposit. If the seller withdraws, they will have to pay double.
A solicitor (or public notary) must secure the transfer of the property ownership. The deed will be given to the buyer after all the parties agree with its contents. The buyer will then have to present a proof of identity and the payment; and the seller will give the title of property (a form that reports the investment to the Central Register). Eventually the contract will require 3 signatures: the buyer, the seller and the solicitor.
The buyer will have to pay transfer tax and stamp tax (Impuesto de transmisiones patrimoniales y actos jurídicos documentados).
If the seller is an individual, the tax is 6% of the price specified in the deed; if the seller is an estate developer and it's a first-time transfer, then an IVA tax applies instead, meaning 7% for housing, 16% otherwise (for housing, you have to add a stamp tax of 1.5% for Madrid). The seller will pay a local tax called the plusvalia.
Property Auctions in Spain
Since 2003, the auction and property market in Spain has been moving onward. But when the recession hit most of Europe, around 2010, it was time for change.
The National Banks were forced into turning estate agents themselves, as they had no other choice than to repossess the property they were owed money on.
Leaving Banks aside, the following institutions and web pages are information resources on where to find properties to be auctioned.
- Agencia Estatal de Administración Tributaria: They publish periodic cheap auction properties held which have arisen through non payment of taxes, etc.
- Ministry of Defense: Property auctions and direct sales in English
- Social Security: Includes both properties in various areas as well as some other items such as cars, etc
Update 8/06/2018
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