Periodic reports on the property market of the Madrid region and city
This page offers data-driven reports on the property market in the Madrid region, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the Madrid real estate market, with a focus on Capital city. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Madrid property market to help inform big decisions with important financial consequences.
Madrid property market overview
Madrid is a prime destination for international property buyers seeking second homes, urban apartments, or investment opportunities. Renowned for its vibrant cultural scene, historic landmarks, and excellent connectivity, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the country, a focused report on the Madrid property market is invaluable for anyone with an interest in this region.
Located at the heart of Spain, Madrid encompasses both the bustling capital city and its surrounding municipalities, offering a diverse range of housing options. From luxury apartments in exclusive neighbourhoods like Salamanca and Chamberí to family homes in suburban areas such as Pozuelo de Alarcón and Las Rozas, the market provides unique opportunities and challenges worth analysing. Key districts such as Retiro, Moncloa-Aravaca, and Chamartín are among the most sought-after areas for buyers and investors.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across the Madrid region and key municipalities.
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into the capital city Madrid.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
Subscribing to Spanish Property Insight provides full access to exclusive data and insights, empowering you to make informed decisions about property investments, sales, or purchases in Madrid. Stay ahead of the market—subscribe today to access the latest Madrid property market reports.
Want one-time access to the latest report without subscribing?
This report is premium content for subscribers only but if you want one-time access to the latest report without subscribing complete the form below to get a secure link and password sent to you by email.
2024 Full Year
This report is for subscribers only. To read this valuable report subscribe here, then login and navigate back to this page, or fill in the form above for one-off access without subscribing.
2024 H1
The first half of 2024
Sales
In the first half of 2024, there were 43,445 home sales in the Madrid region, representing a year-on-year increase of 9.5% (Fig. 1-1). This marks a rise of 11% compared to the ten-year average and a cumulative 56.9% increase over the past decade.
Sales involving international buyers totalled 4,356, showing a year-on-year growth of 13.1% and a 12% increase against the ten-year average. Over a decade, such purchases have surged by 46%. Among these, 3,807 transactions were by foreigners residing in Spain (expats), up 13.8% year-on-year, while 549 transactions involved foreign non-residents (FNR), primarily buying second homes or investments, marking an 8.9% annual increase (Fig. 1-2). Over the past ten years, expat purchases have grown by 37.2%, and FNR purchases by 163.9%.
Foreign buyers accounted for 10% of the market share, slightly higher than the 9.7% recorded a year ago but below the ten-year peak of 11.6% (Fig. 1-3).
New-build home sales totalled 3,972, down by 13.7% year-on-year (Fig. 1-4). Compared to the ten-year average, this was a 2.1% decline, but over the decade, sales of new builds have risen by 58.1%.
In Madrid city, there were 22,049 home sales, a year-on-year increase of 5.9% (Fig. 1-5). This reflects a 9.4% rise compared to the ten-year average and a cumulative 42% increase over ten years.
The affluent northwest suburbs (NWS), encompassing municipalities such as Pozuelo de Alarcón, Majadahonda, and Las Rozas, recorded 3,520 home sales, a robust year-on-year increase of 16.2% (Fig. 1-6). Over ten years, sales in this area have grown by 62.7%. These municipalities are popular among affluent locals and international buyers seeking upscale residential properties.
Prices
The average price of homes sold in the Madrid region during H1 2024 was €311,991.4 (Fig. 2-1 & 2-2), reflecting an annualised increase of 3.2%. Newly built homes averaged €377,020.9, a slight annual decrease of 2.6%.
Over a decade, the property price index rose from 100 to 168.7 for all properties and to 155.3 for new builds (Fig. 2-3). This indicates a 68.7% rise in all property prices and a 55.3% rise in new-build prices over ten years, showing robust long-term appreciation despite occasional fluctuations. Over the past five years, prices have risen 68.7% for all properties but only 21.8% for new builds, suggesting stronger growth in the broader market.
In Madrid city, the average asking price in H1 2024 was €4,362.8 per square metre, an annual increase of 10.6% (Fig. 2-4).
Over the last five years, asking prices have risen by 17.7%, and a ten-year index shows a rise from 100 to 161.1 (Fig. 2-5), reflecting strong demand and limited supply in the city.
Mortgages
There were 29,589 new mortgages signed in Madrid (region) during the period (Fig. 3-1), up 11.9% year-on-year. Compared to the ten-year average, this represents an 11.5% increase, and over a decade, mortgages have grown by 75.7%.
The average Euribor rate, used as a reference for most Spanish mortgages, was 3.67% (Fig. 3-2), slightly below last year’s high of 3.69%. This marks a significant recovery from the 2021 low of -0.49%. The European Central Bank’s ongoing monetary tightening has driven rates higher, and markets anticipate continued moderation in the medium term.
Housing starts
There were 10,095 housing starts in the Madrid region based on planning approvals in H1 2024 (Fig. 4-1), an impressive annual increase of 39.2%. Compared to the ten-year average, this represents a 21.2% rise, and over the decade, housing starts have surged by 135.3%.
The ten-year index of housing starts (Fig. 4-2) underscores a strong upward trend, signalling robust construction activity to meet growing demand.
This report highlights the Madrid region’s resilient property market, marked by strong sales growth, consistent price appreciation, and a dynamic new-build and mortgage market. This stability and growth make Madrid an attractive destination for local and international property investors.
Disclaimer
These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.
The author accepts no liability for errors, omissions, or actions taken based on the content. Information is subject to change without notice.
These reports are for informational purposes only and do not constitute professional advice. Readers should conduct their own research and consult qualified professionals before making investment or business decisions.
By using this resource, you agree the author is not liable for any direct, indirect, incidental, or consequential losses arising from its use.
Go pro
Subscribe for Insight
Buying and owning property in Spain is a big decision—don’t go in blind. SPI provides premium content you can trust: exclusive reports, expert guides, and our Data Hub. Subscribe now for access to exclusive content to help you make confident, well-informed choices in the Spanish property market.
