IP03

2017 / iberian.propery // 23

ISSUE: TOP IBERIAN cities //dossier

Effectively unlocking Operation Chamartín in northern Ma-

drid is the principal feature to attract foreign investment,

especially capital originating from London following the

corporate flight brought on by Brexit.

The launch of construction works that have been in ad-

ministrative limbo for several decades can lead to a more

favourable decision by companies coming to Madrid, as the

capital of Spain, to serve as the nerve centre from which

they can expand their business.

However, there is a major obstacle that curbs the investment

expected from across borders, and it is none other than the

bulk of administrative and territorial authorities that hinder

the steady execution of urban activities.

In 2017, it is unthinkable that the concession of licenses re-

mains such an archaic process considering the technological

solutions at each municipality’s disposal. A judicial security

that occasionally falls under administrative arbitrariness. And

of the political party in government at the time.

Legislation should also keep up with modern times. Any

excessive interference from public authorities in the laws of

supply and demand may lead to a fictitious market. In Madrid

this can occur with the phenomenon of tourist apartments,

whichwe recall not only involves houses that take on this use,

and which largely make up part of a community of owners,

but also apartments located in buildings included in the

vertical property regime where foreign investment is active.

Manuela Julia

Martínez Torres

CAFMadrid

Colegio Profesional

de Administradores

de Fincas de Madrid

President

Madrid has a good structure to attract foreign investment,

but it faces a serious problem: most of the building stock is

antiquated, dating prior to 1980, when thermal insulation be-

gan to be enforced in buildings, and it is not being renovated.

Quality attracts quality, and this brings investment. The

appropriate balance must be achieved and maintained in

the sector, ensuring that the sale and purchase of existing

buildings and residences remains at a healthy rate and that

new construction may continue to satisfy the demand in

the areas that need it, striving to maintain housing prices

within stable parameters.

A consistent message that offers the sector guarantees to

financing and investment, a better economy as well as an

agile and flexible legal framework, all within a long-term

plan agreed upon and sustained by the different political

powers, are sure to act as an essential catalyst.

The flexibilitymentioned above, which should not conflictwith

the need for administrative powers to exercise their official con-

trols, can drive access to building regeneration and renovation

through a public-private financing model, therebymotivating

and helping owners initiate these activities,while also improving

quality of life and restoring an obsolete building stock.

Jesús Paños

Colegio Oficial

de Aparejadores

y Arquitectos

Técnicos de Madrid

President

A stable political and economic framework, as well as the

structural and legal reforms carried out in recent years position

Spain as one of the most attractive options for foreign inves-

tors. This is corroborated by the latest data on capitalmarkets,

placing the volume of investment in Spain at approximately 6

billion euros during the first semester of 2017.

Madrid is the city that attracts the greatest share of capital, and

international funds maintain their focus on this market. The

regional government isworking on the project #ThinkMadrid,

based on low taxation and an ‘administrative fast track’, to

provide benefits to companies and investors who decide to

leave the United Kingdom following Brexit.

The current availability of office space with competitive rents

and good communications infrastructures is the principal basis

for the increase in international firms setting up inMadrid, since

opening local offices is fundamental to provide effective and

close contact between companies and investors, although

theseare investorswhohavebeenoperatinghere forsome time.

New players in the Spanish property market, as is the case

with servicers, and specifically Haya RE, are facilitating inves-

tors’ work in this country because, in addition to a profound

knowledge of the market, we also use methodologies for

purchase analysis adapted to investor needs, with new tools

and advanced solutions to facilitate access to the best assets

for each type of investor.

Iván Fernández-

Valdés

HAYA Real Estate

Advisory &

Institutional Sales

Director