The neighborhood of Chamberí de Madrid is on fire at the residential level. For just over a year, the construction fever has taken over the second most expensive district of the capital, behind Salamanca.
Santa Engracia Street alone brings together half a dozen luxury projects that total almost a hundred homes, some of which will become the most expensive for sale in the capital.
But not only Santa Engracia shines with its own light, real estate speaking, also the Jenner Street. With just 250 meters in length, can boast of being the most expensive street in the district, with prices that have reached 12,500 euros per square meter, because the number of homes that go on sale in this street is really scarce —barely half a dozen flats have been sold in a decade—, and despite the fact that the little product that goes on sale is second-hand.
Housing has become more expensive by 9% per year over the last five years
To these names is added in addition to that of Carranza, which in his case stands out for having become the street where they have become more expensive prices over the past five years within Chamberí, a district in which prices have been growing at rates of 9% per year for the past five years.
All are data from the report ‘Corazones de barrio’, framed in the living loving Madrid initiative, of CBRE. “Chamberí is the most vulnerable neighborhood of the capital, with 301 inhabitants per hectare, being 55 the average of Madrid. Without a doubt, it is a eminently residential district, which has increased its price per square meter mainly due to the arrival of luxurious rehabilitations”, explains Paloma Relinque, director of the CBRE Madrid office.
“In general, prices are rising to the southeast in neighborhoods such as Trafalgar and Almagro, although the Jenner Street stands as the most expensive in the district, taking into account the average value transacted in 2020, and Carranza, the one that has increased its average price the most per square meter for the last five years,” adds Relinque.
Behind this significant price increase is the high demand coming, to a large extent, from the Salamanca district. The enormous shortage of new construction and very high prices, only within the reach of a privileged few, have caused that in the last two years a good part of the buyers of luxury homes — many of them, Latin Americans — have moved towards the district that gathers the largest number of palaces in the capital.
The offer of new construction in Chamberí is very wide. Currently, there is approximately one twenty luxury projects underway, a wide range of projects and prices. Almost 400 luxury apartments with prices ranging from 7,000 and 9,000 euros per square meter, or if we talk about the final price, from 400,000 euros — the smallest units — to 2.5 million.
Carranza, the one that has become more expensive
One street, Santa Engracia, brings together five projects to build 89 luxury homes. Santa Engracia is, therefore, one of the outstanding streets of the district. But also Jenner Street which, as CBRE points out, is the most expensive in Chamberí.
“There are few witnesses, only five second-hand operations with prices between 7,000 and 12,400 euros per square meter. It is a street in which very little product goes on sale, and the little that comes out is very large and very expensive, “explains to El Confidencial Samuel Población, national director of Residential and Land of the consultancy, which highlights the good performance of the luxury segment after the pandemic. The average selling price on this street, despite the fact that everything sold is second-hand, is around the 10,000 euros per square meter.
According to data from the consultancy, in January 2020 the sale of a second-hand home was closed — without annexes — by 11,500 euros per square meter (240 meters), and just six months later, in June last year, in the middle of the pandemic, another operation (290 meters) was closed for 12,400 euros per square meter. That is, with an upward price difference of 8%.
That operation exceeded 3.5 million euros, double that of another very similar transaction in 2017. Another characteristic of this street is that the few homes that go on sale are very large: more than 200 square meters, which affects the final price of the operation.
On the contrary, on Carranza Street “there is a high number of witnesses [se han vendido más de medio centenar de casas desde 2010], with a strong presence, also, of second-hand transactions”, point out from CBRE, which sets the average price in 4,600 euros per square meter, almost half that on Jenner Street, with price variations that range from 3,000 euros per square meter of an operation in 2010 for a house of 150 meters of second hand up to the 12,500 euros paid in 2020, in the middle of the pandemic, for another house of just 60 meters. Carranza is the street in the district where prices have risen the most in recent years, according to the consultant.
Of course, unlike Jenner Street —and despite the fact that this street also measures only 250 meters—, not only sales are multiplied by 10, but the type of housing transacted is much more varied. With floors of just 30 square meters to homes of 150 meters.
“Chamberí has become fashionable for being a good neighborhood, central, with the possibility of buying a house with more square meters at a more affordable price than in the Salamanca district. The success of the recent projects demonstrates the existence of a demand not yet met. It is to be hoped that new projects such as Martínez Campos 19, Santa Engracia 42 and Santa Engracia 129 will sell equally well,” Elena Jori, CEO & Founder of Singular Living, a premium residential real estate advisory firm for domestic and foreign clients, recently explained to El Confidencial.
Rent falls and the rise of coliving
And what has happened in the rental market? Chamberí, like the rest of the capital, has recorded strong price increases in recent years, of 14% in the last two years, according to CBRE. However, in the wake of the pandemic and the health crisis, the consultancy has detected a 12% decline from January 2019 to December 2020.
But, in addition, in Chamberí is the ‘prime’ area par excellence of offices in Madrid, since this district includes the Paseo de la Castellana, with its most exclusive stretch between Plaza de Colón and Nuevos Ministerios. Currently, they exist 78 office buildings for exclusive use, concentrated mainly in the neighborhoods of Almagro, Rios Rosas and Trafalgar, in the east of the district. In addition, it is worth mentioning both the occupation of about 80,000 square meters of the public sector with Nuevos Ministerios and the development of ‘flex’ spaces with the presence of large operators.
Likewise, Chamberí is also the headquarters of Chamberí Valley, an association that seeks to promote the important fabric of ‘startups’ that are in the neighborhood, promoting synergies and turning the area into a ‘hub’ of innovation and technology. currently 10 of these ‘startups’ have already exceeded one million euros in turnover.
“The renovation of the office park in recent years it has achieved a significant share of sustainability certifications, with 10 buildings that are LEED certified. As for future offer, they emphasize: Michelangelo 23; Amador de los Ríos 5, and Santa Engracia 23-25; in addition to the reform in the towers of Colón”, highlights Paloma Relinque.
If we analyze the occupants, Chamberí is also the preferred district for law firms, especially in the Almagro area, media companies such as Saffron, Havas Group or WPP in Ríos Rosas and the old Telefónica building respectively, while international operators they have put the focus on the ‘coliving’ of Chamberí. “The ‘coliving’ is finding in the district of Chamberí an ideal place for its implementation and expansion in Madrid. Currently, they already exist two ‘colivings’ totaling approximately 100 beds in operation“, adds Relinque, who considers that “this district is positioned as one of the areas that arouse the most interest in international operators, which suggests a ‘boom’ of this type of asset”.