Spain’s prime cities bucked the global slowdown in early 2025, with Madrid and Barcelona posting modest gains, according to Savills.
Spain holds steady while others falter
According to Savills’ latest World Cities Prime Residential Index, Madrid and Barcelona both registered prime capital value growth of around 1% in the first six months of the year, with forecasts for further gains of 2% to 3.9% in the second half. That might not sound spectacular, but against a backdrop of slowing global momentum it represents a solid performance.
Across the 30 cities tracked, average prime values rose just 0.7% in H1 2025, down from 2.2% growth across 2024. Heavyweights like London, Paris, Los Angeles and Shanghai slipped into negative territory, underlining the relative resilience of Spain’s prime urban markets.
Lifestyle appeal keeps Spain on the map
Spain’s big-city markets are benefiting from enduring lifestyle appeal, a factor Savills highlights as key to resilience. Buyers in Madrid and Barcelona may be more cautious given macro uncertainty, but the mix of culture, connectivity and quality of life continues to underpin demand. With limited new supply at the very top end, prices remain supported despite the headwinds.
Prime rental markets tell a similar story. Rents in Madrid and Barcelona rose in the first half, reflecting strong tenant demand for high-quality properties even as buyers tread more carefully. Globally, prime rents grew faster than prices, up 2% in H1, as many households adopted a wait-and-see approach before committing to ownership.
Spain’s prime market in a shifting world
The big picture is one of recalibration. Tokyo, Berlin, Dubai and Seoul led the global table with growth above 5% in H1, while Spain’s two main cities quietly notched up incremental gains. In a world of stormy seas, steady values can be a strength in themselves.
For high-net-worth investors with an eye on diversification, Spain continues to offer a stable, lifestyle-driven prime market. If Savills’ forecasts prove correct, Madrid and Barcelona will keep edging forward this year, while some global peers may struggle to stay in the black.
