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The real estate market in Madrid continues to witness positive growth in 2021. The market overall is characterised by increasing demand and a steady rise in prices. This reflects the trend forecast by Engel & Völkers in its Market Report for Spain and Andorra 2020/21. The market climate, restrained to begin with due to the Covid-19 pandemic, has been experiencing increased investment interest over recent months, due to factors including an advancement in vaccination rates, the economic upturn, and the continuing low level of interest rates. After an atypical year in 2020, Engel & Völkers Madrid is predicting a 20 percent increase in sales and a stabilisation of property prices for the current year. “At the beginning of 2021 we recorded a considerable rise in demand, as well as a high transaction volume. The sale of properties in the capital Madrid has risen again faster than expected and we anticipate prices to remain stable or rise steadily,” says Sonia Catalán, Head of Sales at Engel & Völkers Madrid City Centre.
The Spanish property market as a whole is very cosmopolitan. “Madrid is a real estate market with very competitive prices compared to other European capitals such as London or Paris. This makes the city a highly appealing location for investment – both for national and international buyers,” Ms. Catalán confirms. The most sought-after and exclusive areas of the city are traditional neighbourhoods like Goya and Recoletos in the city centre. In the Salamanca district, buyers also gravitate towards Almagro at Chamberí neighbourhood. In Centro, the Justicia neighbourhood is very popular, as are the El Viso, Nueva España and Hispanoamérica areas of the Chamartín district. Villas here can reach top asking prices of 13.7 million euros. Engel & Völkers Madrid has recorded an increase in transactions, especially among international buyers, since restrictions were lifted in the wake of the Covid-19 pandemic. This has resulted in stable prices and positive growth on the market.
The buyer profile of Engel & Völkers clients in Madrid is very diverse, although one main group of buyers is young families looking to buy their first house. The experience of lockdown has intensified a desire among almost all clients to reside in a generously sized living space with additional outdoor areas such as a terrace, garden or balcony. At the same time, properties with a designated room for a home office are increasingly in demand. “Models for flexible working now mean that many of our clients can work remotely from home. Consequently, features like a terrace, an extra room in a city apartment with enough space for an office, and a good Internet connection have become indispensable for many buyers,” Ms. Catalán says.
The average price per square metre for real estate in Madrid was 4,350 euros in 2020. The districts of Salamanca, Centro, Chamartín, Chamberí and Retiro exceed this price bracket however, and are regarded as the most exclusive residential areas in the capital. While Salamanca maintains its frontrunner status as Madrid’s most prestigious district, demand for properties in the Goya, Ibiza and Niño Jesús neighbourhoods increased in 2020. In Salamanca, the average price per square metre was 5,700 euros in 2020, putting it at the top of the list of the highest priced areas to live in Madrid. The most expensive road in Salamanca – Calle de Salustiano Olózaga – commands top prices per square metre of up to 12,000 euros. The neighbourhoods Goya, Ibiza and Niño Jesús are witnessing particularly high domestic demand and therefore an increased number of transactions and a rise in prices. Average prices per square metre here range from 6,000 to 7,000 euros.
In the Centro district, Justicia remains one of the most exclusive neighbourhoods, with homes here reaching top prices per square metre of up to 10,000 euros. Roads such as Calle del General Castaños are particularly sought after among buyers. This is followed by neighbourhoods such as Almagro in Chamberí, Jerónimos in Retiro and El Viso in Chamartín, where asking prices for prestigious properties reach 8,000 euros per square metre. With the growing demand from buyers for properties with terraces and townhouses with gardens, areas in Chamartín like Hispanoamérica and Nueva España have become sought-after investment locations. Likewise, neighbourhoods such as Ciudad Lineal and Hortaleza, with their exclusive addresses like Conde Orgaz Park, Arturo Soria and Piovera, have come into the focus of buyers due to their peaceful roads and expansive, landscaped outdoor spaces. Properties in many areas around Madrid’s city centre are also growing in demand as they also benefit from these desirable attributes.
The neighbourhoods of Mirasierra, Montecarmelo, Puerta de Hierro, Fuentelarreina and Tres Olivos remain in strong demand and retain their ranking among the most expensive addresses in Madrid’s suburbs. Areas including Monasterio del Escorial in Montecarmelo and San Martín de Porres in Puerta de Hierro are seeing top prices per square metre exceed 5,000 euros. “Outside the city centre, clients’ focus has now shifted to the municipalities of Pozuelo de Alarcón, Majadahonda, Boadilla del Monte and Las Rozas, Villanueva de la Cañada, Villafranca del Castillo and Villaviciosa de Odón,” says Bruno Cotta, Head of Sales at Engel & Völkers on the outskirts of Madrid. Mr. Cotta attributes this to the emergence of flexible and remote working models: “There is currently an upturn on the market in suburban Madrid, with prices, still moderate in some cases, now gradually on the rise. Factors like flexible working in a home office, life close to the country and an excellent infrastructure are also presenting the prospect of a high quality of life outside the city centre,” Mr. Cotta concludes.
Monday to Friday
09:00 to 12:30 and 14:00 to 17:30