Madrid’s residential property market has passed through its period of decline, and is now in a new phase of growth. This is according to the latest Engel & Völkers “Market Report Madrid 2016”. “2015 was a turning point for Madrid’s real estate market,” said Paloma Pérez Bravo, Managing Director of the Engel & Völkers Market Center in Madrid. She added: “Last year we managed a moderate recovery and observed a stabilisation of the average property prices.” Interest from both national and international buyers is increasing, and investor confidence in the market is returning. The most desirable districts are currently Centro, Retiro and Salamanca.
Centro: Justicia witnessing a boom
The Centro district lies at the heart of the Spanish capital, with its famous squares “Puerta del Sol” and “Plaza Mayor”. Buyers here include young couples with children, investors and clients from the UK, Germany, China and Venezuela. The Justicia neighbourhood in particular has seen a property boom in recent months. The combination of growing demand and limited supply has made it one of the most expensive places to live in the district. Top prices in Justicia reach around 7,700 euros per square metre. Engel & Völkers anticipates a moderate, stable rise in prices here for the remainder of the year.
Retiro: Jerónimos is Madrid’s most prestigious neighbourhood
The Retiro quarter is a highly regarded address amongst wealthy Spaniards, international buyers and investors. The Jerónimos neighbourhood – with its many monuments and sights like the Puerta de Alcalá and the world-famous Museo del Prado – has some of the highest property prices in Madrid. Buyers can expect to pay up to 10,000 euros per square metre for top freehold apartments here.
Salamanca: international demand for premium homes
The district of Salamanca has recently become increasingly popular. It is traditionally the home of Spain’s political and economic elite. This is why many luxury brands are also based here. Interest in premium residences in Salamanca is particularly high amongst international clients from France, the UK and Switzerland. Most expensive is the Recoletos neighbourhood, with prices per square metre reaching 8,000 euros.
Chamartín: Up to 10,000 euros per square metre in El Viso
The good infrastructure and proximity to business centres like the “Cuatro Torres Business Area” with the highest skyscrapers in Spain make the Chamartín district a popular residential area amongst families and wealthy residents. Homes at prime addresses tend to be larger on average than in other districts of Madrid. El Viso, Nueva España, Hispanoamérica and Castilla are some of the most desirable neighbourhoods in the capital. Like in Jerónimos, prices in El Viso are reaching 10,000 euros per square metre.
Hortaleza: French buyers drawn to Conde Orgaz-Piovera
The most exclusive residential addresses in the Hortaleza district can be found in Conde Orgaz-Piovera. Prices per square metre here reach 9,400 euros. Wealthy Spanish families make up half of residents in this neighbourhood. The other half are international residents. Due to its proximity to the French-speaking school, Conde Orgaz-Piovera is particularly popular amongst French citizens.
Chamberí: the authentic Madrid
The Chamberí area of Madrid is the most traditional part of the city. It was the preferred place of residence for the nobility during the 19th and 20th centuries. Nowadays, the district is in particularly high demand amongst investors. Young couples are attracted to the Trafalgar and Arapiles neighbourhoods, while families tend to gravitate towards Vallehermoso and Rias Rosas. In recent months, investors from Norway and Finland have expressed increased interest in Almagro where many new residential projects are being developed. Almagro is also commanding the highest prices in Chamberís, at up to approx. 8,200 euros per square metre.
Outlook: sustained recovery of the market
Located in the centre of Spain, Madrid is one of the largest cities in Europe. The metropolitan area is the economic engine that drives the country. The region is seeing dynamic growth, with around 55 new companies starting up here every day. Since the property market enters a period of recovery over the past year, Engel & Völkers anticipates a continued upward trend for 2016. “Price rises will be uneven across regions. That is because banks hold large stocks of real estate in some areas, while other regions are witnessing a higher demand than the availability of homes,” said Paloma Pérez Bravo. Engel & Völkers forecast a 4 to 5 percent rise in property prices in Madrid over 2016.
Further information about the residential property market in the Spanish capital can be found in the “Madrid Market Report 2016”.