Prices for premium residential property in Madrid have risen further in the past year. “Whilst the prime locations saw the most dynamic growth in 2015, the average locations are now catching up. It was here that the highest price rises were recorded in 2016,” said Paloma Pérez Bravo, Managing Director of the Engel & Völkers Market Center Madrid, adding: “We see this development as a positive sign that the residential property market in Madrid is now in a period of recovery.”
Investors and wealthy families favour Chamartín district
Chamartín in the north of Madrid is one of the most expensive districts and one of the most important economic centres in the Spanish capital. The large number of educational and medical institutions, and the good connection to the airport make Chamartín an interesting location for investors. 80 percent of buyers are Spanish citizens. Affluent families tend to be drawn in Chamartín to the El Viso neighbourhood in particular, with its abundance of substantial detached properties and penthouses. Prices per square metre for exclusive homes here can reach up to 15,000 euros.
Desirable: residency in Chamberí’s former palaces
The Chamberí district with its many palaces was a popular place of residence with the aristocracy in the 19th and 20th Centuries. Nowadays, there is great interest in residential property here among Spanish families and international buyers who move to Madrid for professional reasons or are looking for an investment opportunity. The highest prices per square metre are fetched for properties in the sought-after Almagro quarter, at up to 12,800 euros. In this price category, many buyers are looking for existing residences that they can convert and refit according to their individual needs.
Hortaleza popular with French buyers
The district of Hortaleza is characterised by its large variety of different property types, as well as the diversity of the buyer profile and prices. The highest priced properties here are found in the Piovera neighbourhood, reaching up to 10,500 euros per square metre. Spanish and international families with a high income look here for detached residences. The majority are families from France who are drawn to the area due to its proximity to the French international school.
High demand for residential property in Centro
The Centro district is the historic centre of Madrid with famous sights including the Royal Palace and the Plaza Mayor. The central location attracts national and international investors looking for real estate as a medium or long-term investment. Centro is also in strong demand with many young professionals who tend to be looking for apartments with two bedrooms and two bathrooms. With prices per square metre of up to 8,300 euros, Justicia is the most expensive neighbourhood in this district. Due to the high excess in demand, many prospective buyers are also interested in the neighbouring district of Embajadores, which has developed in the past year into an attractive location.
National and international demand in Retiro
The district of Retiro is especially sought-after with wealthy families and international buyers. Here, the Jerónimos neighbourhood is very popular with interested buyers from abroad. The majority are from Europe and Latin America. They are drawn by the elegant flair and the multitude of historic sights and monuments such as the Puerta de Alcalá and the Museo del Prado. With prices per square metre of up to 8,000 euros, Jerónimos is the most expensive area of Retiro, too.
Exclusive residential addresses in Salamanca
Many prestigious buildings dating from the late 19th Century grace the avenues of the Salamanca district, which is above all home to Spain’s political and financial elite. Premium properties here are particularly popular with Latin American buyers from Venezuela, Colombia and Mexico, as well as with buyers from the UK, France and Switzerland. Their interest centres mainly on large detached properties in the Recoletos neighbourhood. Prices per square metre for exclusive homes here are as much as 8,000 euros.
Outlook: Upward trend set to continue
The residential property market in Madrid is set to continue on its positive course of growth. The level of new construction will be sustained and is likely to see a slight short-term increase in the availability of properties in desirable locations. Overall however, the supply of properties in Madrid will remain limited. For this reason Engel & Völkers forecasts further price rises. “We anticipate that sale prices for residential property in Madrid will increase by four percent on average over the remainder of this year,” said Paloma Pérez Bravo.
Further information about the residential property market in Madrid can be found in the “Market Report Madrid 2017” (from page 18).