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The Engel & Völkers Madrid branch presents its fourth market report

                   2019, a year marked by moderate house price increases in Madrid 


  • Engel & Völkers predicts an increase in new build properties in the peripheral areas and renovation buildings in the centre 
  • The reduction of the upward trend in prices, which will go from double-digit growth to 3-5%, will boost residential demand 


The improvement of the economy and the attraction of low interest rates for investors have drawn a positive scenario for Madrid's real estate sector in recent years, with steady price increases in 2018. For the year 2019, it is expected that the growth of the residential demand goes through a normalisation of prices from the previous double-digit increases to a slight increase of less than 5%. 

This is one of the conclusions of the Madrid 2018-19 Market Report, prepared by the German firm Engel & Völkers, which foresees that the new-build constructions will continue in the peripheral areas and the renovation projects in the centre of the capital will be on the increase. 

The report, which was presented today by Óscar Larrea, the general director of the Metropolitan Market Centre (MMC) at Engel & Völkers in Madrid, and Constanza Maya, director of operations and expansion of Engel & Völkers for the franchise network and the MMC in Spain, Portugal and Andorra, states that "in 2019 there will be an increase in the average property price ranging between 3% and 5% in the capital." "If in 2018 the highest price rises took place in the most popular districts of Madrid, which is a very positive sign of a sustainable recovery, it is foreseeable that in the first half of 2019 the prices will remain stable to make way for a slight rise in the second part of the year". 

Salamanca, Retiro and Centro, the most expensive districts

Salamanca is still in the lead as the most prestigious district of the capital, next to Retiro and Centro, where average prices are above 5,000 euros / sm, although in neighbourhoods, such as Recoletos, Castellana and Jerónimos, the most exclusive homes can reach up to 10,000 euros / sqm. 

In Centro, Justicia remains one of the top areas of the capital with prices reaching 7,000 euros / sqm, in line with Almagro (Chamberí) and El Viso (Chamartín), where properties can reach prices of 15,000 euros / sqm. This also includes homes in the most sough-after areas of Piovera and Conde Orgaz (Hortaleza).

Madrid - image001.png

Outside Madrid's Central Almond, the municipalities of Pozuelo de Alarcón and Majadahonda are still two of the Spanish towns with the most expensive properties, with an average price of 3,000 euros / sqm, although in some areas the figure exceeds 8,000 euros / sqm. These prices will remain high, in line with other prestigious metropolitan areas, such as La Moraleja. 

Constanza Maya recalls that in 2018 the company "sold a detached house in La Moraleja to a foreign client worth more than 10 million euros, a record amount rarely achieved in recent years". 

Close to these exclusive areas of northern Madrid, the new neighbourhoods where construction started in the early 2000s are in high demand by young and middle-class families. These areas include Sanchinarro, Las Tablas and Valdebebas, with average prices of around 4,000 euros. / sqm. 

2,000 euros a month, the maximum rent budget 

The so-called 'Airbnb phenomenon' has marked the rental market in Madrid during 2018. In addition to boosting the property prices in very central neighbourhoods, such as Sol, the strong demand by tourists in these areas has resulted in a 90% increase in buy to lets. The investors' objective is to use their investment property for short-term rentals.


Media impact:

Expansión | ABC | ABC Economía | Cinco DíasLa Vanguardia | El Confidencial Idealista Expansión | La Voz de Cádiz | Crónica Económica | Pisos.com | 24 España | Sevimedia | Invertia | Inversión & Finanzas | La Rioja.com | El Diario Vasco | Hoy.es | Gerente.com | Business Insider | MSN | Somos Chueca |

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