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.
Centro: Prices per square metre of up to 7,100 euros
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.