The mentioned price development in Madrid might feel alarming to some readers. Indeed in some areas near the center of Madrid prices have dropped a lot but other areas are still increasing and even emerging as very interesting investment opportunities. For instance in some rural zones at no more than 60 kilometers from the city, with excellent (and still improving) communication it’s still possible to acquire a property with a nice plot for almost half of what you pay in Madrid. At the same level as a nearly decent apartment (starting from 250.000 euros) you can still buy a nice family chalet with an impressive garden, often with swimming pool. We are talking about areas that by the Madrileños once have been chosen for their holiday houses. Nature is very beautiful and under protection, which will avoid that in the future, having bought a very quiet and relaxing property, you will find yourself in a crowded urbanizacion.
Before making any judgement based on pricing I think a more careful study of the real estate market in the Comunidad de Madrid is necesary and you might find it even attractive to make an investment there. Personally I’m very surprised this area still seems to be rather undiscovered.