Real estate investment always has growth in the long term. To invest in Madrid is an attractive option for those who want to get the most out of their money and who want to combine it with the maximum possible security. But what makes Madrid city so attractive?

Reasons to invest in Madrid

Attractive development in the medium and long term

It is not the same to speak of central Madrid than of the outskirts of Madrid nor is this comment valid for coastal areas. In Madrid Capital, the real estate market has its cycles and they are predictable.

When there are increases in interest rates, it is normal for the demand for home purchases to fall, but this implies that the demand for housing rental will rise and that the demand for purchase will accumulate.  In short: either the demand for rent accumulates or it accumulates from purchase.  In the long run, it always goes up. A significant drop is followed by an even more important rise.

Decreasing funding opportunities

This is actually the bad new, The Euribor is the main reference index used to calculate the interest rate applicable to mortgage loans that are at the end of the growing cycle. The forecasts for the future can still reserve us increases.

It is advisable to negotiate fixed rates as long as they are not too high. It is possible that rates will start to fall in a few years, maybe not too many, but you should not risk it.

In Madrid there are homes of all kinds and many prices

To invest in Madrid just take a look at idealista to realize that there is an offer for all tastes. You can find homes for sale of new construction, rehabilitated or to be rehabilitated. In luxury or more affordable assets, from the smallest to large properties.

Investors in housing can allocate them to the rental of habitual residence, seasonal or tourist rental. The truth is that not all places serve for all businesses.

Invest to increase profitability

The demand for habitual rental homes in Madrid has grown so much in recent years that those owners who decide to put their property for rent get a tenant in just a few days. To this is added the possibility of renting the property seasonally to students and expatriates. At DFLAT we are dedicated to obtaining higher returns for investors in housing.

Increase security

The best security is obtained by getting the best customer with the safest contract. When this is not possible, insurance policies, safe rentals or other options that imply that there is actually a risk. If you own a home you should contact us.

The best neighbourhoods within the M30 to invest in Madrid

Salamanca District

It is the neighborhood par excellence of Madrid, located next to the famous Golden Mile, its streets are a constant coming and going of people. Buying a home in this area is a good alternative for those investors who want to have a property in a luxury area and that is constantly revalued. However, profitability in these areas is lower.


A quiet area with very easy access to the center. It is considered one of the best parts of the city to live, especially for young couples with children or students of the Complutense University or the Francisco de Vittoria. Real estate in the Moncloa-Aravaca district is in high demand, either to buy or rent, and prices are usually high.

The Latina

It is one of the most traditional neighborhoods of Madrid and, in recent decades, the arrival of population from different parts of the world has made it a unique multicultural space that captures the attention of both Madrileños and the thousands of tourists who visit the city every year. It has a good offer of commerce and restoration and its location in the heart of the city makes it the ideal place for the construction of rental apartments for students or expatriates who come for short periods to Madrid.


The district of Tetuán offers you a little bit of everything and one of those that still have low prices in Madrid. In it, there are from large skyscrapers to very old houses. The neighborhoods of Cuatro Caminos and Bellas Vistas are the most outstanding in the area and are always attractive for those looking for a rental home in Madrid with more or less adjusted prices.

Buy to rent: the best real estate investment option

But what is better, rent in the traditional way, seasonally or dedicate the house to tourist leasing? This depends a lot on the situation of each investor and the type of property he has acquired. You have three types of rental and three different business.

If you want to invest in Madrid, in neighborhoods like La Latina or Las Letras, you will be able to get a lot of performance from a flat if you turn it into a tourist apartment. They are central and very busy areas, where there is a high demand for short-term rentals.

However, you must bear in mind that, in order for you to dedicate the house to tourist rental, you must have the corresponding permission from the Madrid City Council, which implies having to make an investment in the adequacy of the house and the bureaucratic procedures, many of which are still in development or are not very clear.

The other alternative is to resort to traditional rental. Taking into account that the demand for rent in Madrid does not stop growing, the prices that can be asked today for flats in good condition are quite interesting. In some areas, finding a tenant is a matter of just a few days.

However, another way will always be seasonal rentals. Without falling into the tourist mess, you can rent your apartment for months to students and expatriates maintaining very good returns.

What type of housing to invest in?

Most of the real estate offered in Madrid consists of apartments between 40 and 160 square meters and two or more rooms. However, if the house is going to be dedicated to rent (especially temporary), one-bedroom apartments are also good investments.

Do you need to invest in Madrid?

DFLAT hosts companies, executives, expatriates and high-end Master students, we make listings of apartments for companies and we market it through B2C, B2B channels and own channels such as Human Resources departments.

If you are a property owner in Real Estate you can visit our DFLAT page for homeowners.