Malasaña is the neighbourhood for the sophisticated, artistic people who are gentrified, enjoy going to cultural events rather than the parties in Sol. It is an area which attracts elegant artistic people from 30 yo and onwards.
Malasaña is in the center of Madrid, just north of Gran Vía, the famous avenue of Madrid center, south of the traditional Madrid neighbourhood of Chamberi, west of the gay and arty neighbourhood of Chueca. As a result, Malasana contains a mixture of hipness like in Chueca, however with the tranquilly like Chamberi.
In the 80s, famous Spanish cinema director Pedro Almodovar loved to hang out in Malasaña’s bars rehearsing movies, going to rock concerts and supporting all artistic initiatives. This was an artistic era in Madrid, just like Paris in May 1968.
In this blog, Epic Asia is presenting to you one of the best deal that is currently in the market, located in Malasana.
This is a 114 m², three bedrooms apartment on the first floor, with exterior views and lots of lights, with a small storage room. Located next to the famous walking shopping street Calle Fuencarral and just a step away from the Gran Via where there are theaters, cinemas and restaurants.
Epìc Asia regarded this apartment as a very good deal because:
1. For € 520,000 with 114 sqm, the price per sqm is €4400. It is well below the current market average of €6175 for properties in Malasana. https://www.idealista.com/en/news/property-sale-spain/2019/01/16/6374-price-development-each-neighbourhood-madrid-and-barcelona
2. There are 2 Parisian Balconies – they are the full length windows that are very sought after for housing in Madrid. As well as a balcony in the kitchen. It gives higher valuation to the apartment.
3. The apartment is well located in the middle of everything, lots of shopping, restaurants in walking distance, whilst still being very quiet.
4. Most of the windows are facing the external street views. It gives higher valuation to the apartment.
5. With this layout, locations and the current condition of the apartment, you can rent out to a decent family at €2200 per month, or if you invest in some renovation (around €20000), you can rent it out at €2500.
Overhead investment (let say Epic Asia can help negotiate at €500,000, not guaranteed)
Property Price = €500,000
Property Tax 6% = €30000
Epic Asia 1% commission= €5000
Notary & Lawyer & Registro fee =€2000
TOTAL OVERHEAD INVESTMENT = €537000
Yearly Rental (Profit let say you are renting it out at €2200 monthly)
Total Rental Income = €2640
Rental Tax (25%) =€ 6600 (please consult Epic Asia for more accurate rental tax calculation)
Community fee =€1200
Yearly Property Tax (0.6%)=€ 3000
NET YEARLY INCOME AFTER TAX AND COST =€15600
Market Appreciation
In 2014 to 2018, Madrid residential price has surged 42.5%. Different schools and associations carry different predictions for the future. However, they are overall very optimistic.
Taking a medium prediction from different bodies, residential properties in Madrid continuous to rise year on’year with a 10% growth.
As such with 500,000 the current market price, in 2025, which is 7 years after you obtain your residency with path to apply citizenship, this property will worth 701,954 - an almost 50% jump of your current price.
REFERENCE ON MADRID PROPERTY PRICE PREDICTION
According to GPS, house Prices in Madrid continuous to rose 8.7% in 2019
According to the Spanish property associations, house Price in Madrid will be in doublé digit growth on 2019 and onwards ( 10 – 15%)
REFERENCE ON THE MADRID RENTAL MARKET
Rental has increased 50% https://elpais.com/elpais/2019/08/08/inenglish/1565257958_272074.html?rel=str_articulo#1566724982925