Madrid Real Estate Market Analysis

This repository provides insights into the real estate market in Madrid using data from Idealista from December 2024.

The goal is to measure which districts are the best for investment according to renting and the selling price. Two metrics where used to performed this evaluation:

PER (Price-to-Earnings Ratio)

The PER is number of years to recover the investment:

PER = Purchase Price / Annual Rental Income

A lower PER value generally indicates a more attractive investment.

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Annual Rental Yield

The Annual Rental Yield is calculated as:

Annual Rental Yield = (Annual Rental Income / Purchase Price) * 100

This value is expressed as a percentage and represents the annual return from renting the property compared to its purchase price.

How to Use

1. Clone the repository

2. Install requirements

   python install -r requirements.txt

3. Investment calculator

   Open the where_to_invest.ipynb notebook in the notebooks/ folder and input your details to calculate potential investments.

Interactive Notebook

In Binder, you can visualize and interact with the plots and maps.

Click the badge below to launch the interactives notebooks:

Use this environment to explore data and check the values of the visualizations.