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Montecarmelo - highly demanded neighbourhood in Madrid

A wide walkway in an urban area with trees, benches, and modern buildings in the background, on a bright sunny day.

Montecarmelo, located near Monte del Pardo, the Colmenar highway, and the M-40, emerged as a residential area in the early 1990s. Spanning more than half a million square metres for residential use and boasting 8,500 homes (both free-market and subsidised), it quickly became a popular choice for young couples looking for a place to settle, while commuting to the city centre for work each day. Like Sanchinarro and Las Tablas, Montecarmelo was initially conceived as a "bedroom community." However, in recent years, it has become a direct witness to the rising property prices in the area.

Table of Content

The growing demand for Montecarmelo
Proximity to schools drives demand
Montecarmelo: the unique appeal of the neighbourhood
Why now is a good time to sell in Montecarmelo

The growing demand for Montecarmelo

The increasing demand for property in Montecarmelo is undeniable. The neighbourhood has fully consolidated, thanks to its strategic location close to upscale areas such as Valdemarín, Mirasierra, and Puerta de Hierro. As a result, the typical buyer profile in Montecarmelo is generally of a very high socio-economic level. Unlike Sanchinarro or Las Tablas, Montecarmelo features not only apartment blocks but also detached houses and villas, adding a wider range of options for potential homeowners.

Proximity to schools drives demand

One of the key factors influencing property demand in Montecarmelo is its proximity to top-tier educational institutions. Families often seek to live as close as possible to their children’s school to minimise daily commuting. This has led to what can be described as "micro-markets" — small areas within a neighbourhood where property demand fluctuates sharply due to school proximity.

While some neighbourhoods have seen stable demand in this regard over the years, Montecarmelo experienced a sudden surge when, in September 2016, the prestigious German School of Madrid moved from its long-time location on Concha Espina Street to a new, modern campus in the area. This relocation triggered an immediate increase in residential demand in Montecarmelo, which was already an attractive neighbourhood but had a limited housing supply. Within months, the available properties for sale were quickly snapped up.

Montecarmelo: the unique appeal of the neighbourhood

Montecarmelo stands out as a unique case due to a combination of factors. First, the neighbourhood was already highly sought after, thanks to its pleasant environment and the best commercial offerings among the PAUs (Plan de Actuación Urbanística) in the northern part of Madrid. Moreover, Montecarmelo is one of the areas in Madrid that suffers the least from traffic congestion, making it even more desirable for those seeking a quieter, more accessible area. The arrival of the German School acted as the final catalyst for the significant increase in property demand.

The neighbourhood is particularly popular among German nationals and mixed German-Spanish families, who have shown a strong preference for Montecarmelo as their residential area of choice.

Why now is a good time to sell in Montecarmelo

Given the combination of factors driving demand in Montecarmelo, now is an excellent time to sell property in this neighbourhood. At Engel & Völkers, we have an extensive portfolio of high-net-worth clients who are actively looking to purchase homes in Montecarmelo. Additionally, many of our native German clients trust us to help them find their ideal property in this increasingly sought-after area.