The luxury housing markets in Spain’s two biggest cities are edging upwards, with forecasts pointing to further growth before the year is out.
According to the Savills World Cities Prime Residential Index 2025, prime property values rose 0.9% in Madrid and 0.5% in Barcelona during the first half of the year. That puts Madrid in fifth place and Barcelona in seventh among the European cities tracked, outpacing heavyweight markets like London (-1.6%) and Paris (-0.7%).
Savills predicts the trend will continue, with values climbing between 2% and 3.9% over the course of the year. The current average stands at €11,100 per square metre in Madrid and €9,300 in Barcelona – still considered competitive compared to many other European prime markets.
Global performance mixed
On a global scale, luxury housing markets remain resilient, if more restrained than in the post-pandemic boom years. Tokyo leads the Savills ranking with an 8.8% surge in prime values, followed by Berlin (+7.2%), Dubai (+5.7%) and Seoul (+5.1%). At the other end of the spectrum, Guangzhou (-4.3%), Hong Kong (-3.5%) and Los Angeles (-3.1%) are seeing declines.
Savills notes that around 60% of the 30 global cities analysed recorded gains in the first half of 2025. But the firm also highlights a shift in investor focus towards income-generating assets, reflecting a more cautious mood in an environment marked by volatility.
Why Madrid and Barcelona look competitive
Despite rising values, both Spanish cities still offer what Savills calls “competitive options within the European luxury segment.” International appeal, limited supply of prime product, and quality-of-life factors continue to underpin demand, with foreign buyers a significant driver.
If the forecasts hold true, 2025 could see Madrid and Barcelona consolidate their position as two of Europe’s more attractive prime residential markets – not leading the pack, but certainly holding their own against rival destinations.
