As a global real estate company, Engel & Völkers proudly serves communities in more than 30 countries. From here in the Americas, through Europe and Asia, and down to Africa, Engel & Völkers advisors serve their communities not only as local market experts but also as global advisors with an understanding of the real estate market on a global scale. In part, this month Engel & Völkers has gathered information to share with you on the market in Spain’s central capital, Madrid.
Madrid, known as Spain’s arts and financial center, is a city of elegant boulevards and expansive, manicured parks, renowned for its stunning architecture of modern highrises and classical Spanish homes and its rich repositories of European art, including the Prado Museum’s works by Goya, Velázquez, and other Spanish masters.
Madrid Real Estate Market
In 2012, Madrid’s real estate prices hit a market low due to the international financial crisis. Since then, prices have been steadily increasing and, prior to the COVID-19 pandemic, were up 53% in 2019.
Madrid’s real estate market has always been dominated by flats and apartments, as houses tend to be expensive and far from the major centers of commerce. Since the start of the pandemic, the number of flats on the market has almost doubled from 15,000 to 28,000, as previously popular tourist homes have transitioned to the traditional sales market.
The most sought-after districts and neighborhoods in Madrid
In the 19th century, the Marqués de Salamanca invested almost the entirety of his fortune into building this district. Currently, the district is split into six different wards. Of these wards, Recoletos and Castellana have the most listings and the highest number of transactions. Salamanca is known for its grand boulevards, which are home to the city’s top restaurants and some of the best tapas bars in Spain.
Retiro, a highly sought after neighborhood in Madrid, derives its name from the famous and idyllic “Retiro-Park”. One of Retiro’s wards, Jerónimos, directly borders the park. Jerónimos is traditional and laid back while still located right in the heart of Madrid. The neighborhood is highly sought after by buyers due to its proximity to both city life and nature.
Chamberí is a traditional district with an aristocratic architectural flair in the heart of Madrid. Within the district of Chamberí, the neighborhood of Almagro is the most sought after. In Almagro, the Madrid way of life mixes with the fashionable and hip identity of the neighborhood.
Chamartín is a popular division for families, especially the ward El Viso. El Viso is known for its detached properties with gardens and its apartments in closed residential complexes that offer amenities such as paddle and tennis courts, gardens, and swimming pools.
The average price in the top segment
The average price of properties in Madrid varies greatly by district. In Madrid’s top segment, the average price per square meter is approximately $8,800 USD. Newly renovated homes can be priced upwards of $12,000 USD per square meter and penthouses can cost up to $16,500 USD per square meter. In neighborhoods like Castellana and Recoletos, penthouses can sell for between $6 and $9.5 million USD.
Trends and developments in the Madrid market
A high level of interest in green spaces
Throughout the COVID-19 pandemic, people around the world have started to reevaluate what they desire in their homes, and in part, there has been a global shift in people desiring living spaces with more green and outdoor space. Madrid is no exception; there has been a growing demand for residential properties with terraces and apartments that offer communal areas. Outside the city center, clients tend to look for houses or apartments with gardens.
Rising attraction for corporate investments
Behind Paris, Berlin, Frankfurt and London, Madrid ranked fifth in real estate prospects out of 31 European cities in the “Emerging Trends in Real Estate – Europe 2020” report published by PwC and the Urban Land Institute. Madrid’s positive real estate prospects, characterized by highly rated development and investment opportunities, have attracted strong interest from international corporations.
“The Spanish capital leads the way with regard to attracting foreign investment into the country. It ranks as one of the most attractive destinations in Europe in terms of investing in real estate. One in every five companies founded in Spain has their office based in Madrid, and 72 percent of the 2,000 largest Spanish companies have their head offices based in the capital.“Óscar Larrea – Managing Director of Engel & Völkers Madrid
Growing demand for properties in La Finca and La Moraleja
Madrid is world-famous for its football clubs Real Madrid and Atletico Madrid. Many renowned football players are settling in La Finca and La Moraleja, exclusive neighborhoods on the outskirts of Madrid. Following these players’ moves, there has been a strong increase in demand for real estate in both areas of the city.
Engel & Völkers Madrid
Engel & Völkers Madrid is one of Engel and Völkers’ 19 Market Centers. It represents listings in Madrid’s most exclusive neighborhoods: Barrio de Salamanca, Chamartín, Chamberí, Moncloa, Retiro, Tetuán, Centro, Boadilla del Monte, Conde de Orgaz, North Zone, Pozuelo de Alarcón, Las Rozas, Aravaca, Villaviciosa de Odón, Alameda de Osuna and Majadahonda. Within these neighborhoods, Engel & Völkers Madrid offers a number of distinguished flats and houses. The most exclusive residence currently listed is a 500 square meter (5382 square foot) apartment in the Recoletos neighborhood of Salamanca. This recently modernized apartment offers a luxury kitchen, underfloor heating, and a Jacuzzi. The asking price is approximately $13.6 million USD.
For further information about the property market in Madrid and/or referrals please contact:
Engel & Völkers Madrid
Phone +34 91 2774 500