Just like cities, countries or any community, neighbourhoods also suffer substantial changes, evolutions, involutions, growths and decreases during the years. Those changes affect the environment of those neighbourhoods and of course, also the prices and conditions of the properties.
Gentrification is the phenomenon that happens when an industrial area of low classes grows and the social class becomes higher turning it into attractive to a new segment of citizens with a high socioeconomic class.
A clear example of this is the fantastic switch of the emblematic neighbourhood of Chueca, located at the “Justica” district, known as the neuralgic centre of Madrid’s life. It is delimited by Paseo de Recoletos, Gran Via, Fuencarral street and Fernando VI. During the 60’s Chueca was suffering of an extreme degradation, the properties were being abandoned and the social environment was very injured.
However, at the beginning of the 70’s a gentrification process started and the neighbourhood experimented a radical improvement. This process started when a huge group of people, mostly from the LGBT community started to buy commercial and residential properties aiming to improve the environment attracting the population of high socio economic level. During the 90’s the neighbourhood was defined as the gay neighbourhood of Madrid, but also one of the most desired places to live for students and for the youth from different nationalities.
A study made by Monapart in collaboration with InAtlas, reveals the commercial success that the centre of Madrid is experimenting, one of the biggest attractions of the whole country.
The centre of Madrid is one of the best listed areas of the capital. Properties reach the prices of 20€/m2 only for the monthly rent and over 4.000€/m2 for selling.
The gentrification process and its consequences
Chueca has become the Cosmopolitan neighbourhood of the city, frequently compared with SOHO in New York and is known by its day and night life, historic streets full of restaurants, stores, and bars. The central point of the neighbourhood is “Plaza de Chueca”, where the metro station is. It is popular due to the many outside bars and restaurants that are visited during the whole year by locals and tourists.
Neighbourhoods like Chueca, Malasaña or La Latina are trending, and this fact attracts investors to new commercial concepts, more creative and alternative. The prices on these neighbourhoods keep on increasing each year, because they are not being sold only as a property, but as a life-style.
According to a study by Data Analystics (Uda), specialized in Big Data of properties that are used for investment, the average price of a property in Chueca is 3.569€/m2, which is above the 3133€ of the center of Madrid, and way above the average of the city which is 2670€. Also it has been immune to the financial crisis, since the prices have not fallen like in the rest of the city.
Eduardo Crisenti, director of Engel & Volkers, assures that renting in this neighbourhood is extremely easy, and that the real estate market in Chueca has been stable for years
This week, Housers has released its 2nd project in Chueca. It is a bar/restaurant with terrace located at the above mentioned “Plaza de Chueca”. The project is already rented and it will remain rented at least until the end of the year. It is a great opportunity due to its perfect conditions, recently renovated and its revaluation potential. Take a look at the project in our website.