Spain’s property market achieved a full recovery in 2018, with more than 500,000 real estate transactions overall. This figure was last reached in 2008. “Interest from national and international buyers has returned and the confidence in the market is clearly noticeable,” said Óscar Larrea, Managing Director of Engel & Völkers Madrid. The growing number of sales has also had an inflationary impact on sale prices, especially in the Spanish capital. Last year, the price of villas and houses in Madrid rose on average by 17 percent. The city’s most desirable districts remain Centro, Retiro and Salamanca.
The heart of the Spain’s capital is known as the Centro district. The conversion of the Gran Via thoroughfare into a pedestrian zone and the establishment of a low-emission area with restricted traffic (Madrid Central) were both key factors contributing to the rise in prices last year. Spanish clients dominate the market, accounting for 70 percent of sales. The remaining 30 percent are international buyers from countries including Venezuela, Colombia, Belgium and Italy. The Justicia neighbourhood in particular is very popular. The combination of growing demand and limited availability here has made it one of the most expensive residential areas in the district, with prices per square metre of 7,100 euros.
The district of Retiro is especially desirable among wealthy Spanish families looking to buy their first home. Some 90 percent of buyers are Spanish citizens, while the remaining 10 percent come mainly from Latin America. One of the most expensive locations in Madrid is the Jerónimos district with its many monuments, landmark sights and the Retiro Park. Premium freehold apartments here command top prices per square metre of up to 10,500 euros.
The symbolic district of Salamanca is known for its exclusivity. It encompasses the Recoletos and Castellana neighbourhood, which are the best addresses in Madrid. Elegant residences in historic, aristocratic buildings and properties spanning between 200 and 400 square metres are especially sought after and reach prices of up to 11,000 euros per square metre. The demand for premium properties is particularly high among wealthy Spanish families.
Compared to the other districts, Chamartín has a multinational buyer base. The majority of international clients come from Venezuela, Jordan and China. The latter are primarily interested in purchasing a property to obtain a so-called “golden visa”. Prime neighbourhoods in this district include El Viso, Nueva España, Hispanoamérica and Castilla. The price per square metre can reach up to 7,600 euros.
Chamberí is the most traditional area in the city and boasts the richest array of architectural heritage. The reason: in the 19th and 20th centuries, aristocrats chose this district as their preferred place of residence. Nowadays it is desirable both with Spaniards and with international investors from Venezuela and Mexico in particular. Top prices of between 5,400 and 7,400 euros per square metre are reached here.
The Spanish capital is located at the geographical centre of the country and is one of the largest cities in Europe. The metropolitan region has been an economic powerhouse for many years. This dynamism can also be observed on the real estate market. According to Engel & Völkers, a stable and positive development can be expected for the coming year. “The general demand remains high. Price increases will vary from district to district. Prices in the traditionally popular districts of Salamanca, Retiro and Centro are levelling off at a high level,” said Óscar Larrea.