Luxury home sales and prices are up in the Spanish capital, whilst the average time on market is falling, claims a new report from Knight Frank.
Luxury homes sales are up 25% on last year, prices have risen by as much as 8% in some districts, and the average time it takes to sell a luxury property has fallen to 3 – 6 months, according to Knight Franks latest Prime Residential Report.
Prices have risen the most in the Los Jerónimos district (+8%), followed by Salamanca (+7%), and Chamerí (+3%). These three districts between them attract 70% of demand.
In the Knight Frank global city ranking of house price movements over 12 months to the end of Q3, Madrid is now in second place amongst European cities, behind only Monaco, and ahead of cities like London and Paris (see table below).
Local (Spanish) demand is 70% of the market, but foreign demand is gaining market share, and has doubled in size in two years. Foreign buyers from Latin America are the most numerous in Madrid.
There is an acute shortage of new developments, creating price pressures and frustrated demand for prime new homes in the city, despite prestigious new projects in the pipeline such as the Four Seasons Private Residences in Canalejas, Lamarca in Fernando V1 10, José Abascal 48, and Antonio Maura, 8.