Is the Luxury Housing Market in the Northern Zone of Madrid Slowing Down?
In a year marked by highs and lows in the real estate market, the luxury housing sector in Madrid's Zona Norte, which encompasses exclusive areas such as La Moraleja, El Encinar de los Reyes, El Soto de La Moraleja and Ciudalcampo, continues to stand out for its steady growth.
Although the outlook suggests that property sales in general in Spain could experience a slowdown towards the end of this year, the luxury sector is not selling more because there is no supply of homes available. Our reality is that demand is outstripping supply and although the trend in the sector is slowing we are not seeing the slightest sign of price containment.
Owners who have homes for sale are aware of the scarce supply and are reluctant to lower prices, especially when several factors come together:
- Rising interest rates that increase construction costs.
- Rise in raw materials and construction materials
- Demand for housing in residential areas exceeds the supply of houses on the market.
- Positive economic growth
The COVID-19 pandemic and its aftermath have driven a transformation in housing demand. Initially, the search for larger spaces and green areas has made the Northern Zone of Madrid even more attractive to buyers looking for luxury properties. Rea Inmobiliaria has witnessed this boom, with an ever-expanding portfolio of exclusive properties in these coveted locations.
There are factors to think about for a future slowdown What factors are contributing to this possible slowdown?
- New Regulations: The recent implementation of government regulations aimed at controlling the real estate market could influence the future .
- Global Economic Situation: Global economic uncertainty and changes in fiscal policy could be making investors and luxury home buyers more cautious.
- Expectations of slowing global growth.
Despite these factors, the opportunity to find the home of your dreams in the north of Madrid is still very real and at Rea Real Estate we help you find that property thanks to our knowledge and great selection of homes in the area.