In the past five years, the luxury real estate market in Madrid has undergone a remarkable transformation. From being considered an attractive but "discreet" capital, Madrid has risen to a prominent position among major European cities for high-end residential investment. The evolution of prices in prime areas is a direct reflection of this change.
At BARNES Madrid, we analyse how square meter values have progressed between 2019 and 2024, and what factors explain this sustained growth in the luxury segment.
An Upward Evolution in Prime Areas
Between 2019 and 2024, luxury real estate prices in Madrid have seen a significant increase, especially in the most sought-after neighbourhoods. The 2020 pandemic marked a brief pause, but from 2021, the recovery was rapid and steady. Below are some representative examples:
(Sources: Idealista, internal market data from BARNES Madrid, Land Registry Notes, INE)
This growth has not only been sustained but has also exceeded the expectations of many analysts. While other European capitals have shown signs of a slowdown in the luxury market, Madrid has continued to attract both international and national capital thanks to a combination of factors that are hard to replicate.
What Explains This Positive Evolution?
Competitive Starting Prices:
Madrid started with a lower price base than other European capitals. This allowed for growth margins without entering into overvaluation zones.
Rising International Appeal:
The interest from buyers in France, Belgium, Switzerland, the United States, and Latin America has grown steadily. Many find in Madrid an ideal balance between quality of life, climate, favorable taxation, and reasonable prices.
Scarcity and High Demand for Properties:
High-level properties—renovated apartments, penthouses with terraces, properties with views or in unique historic buildings—are scarce. The high demand and limited supply explain the upward pressure on prices.
Strength of the Unmortgaged Segment:
In the luxury market, a significant portion of transactions are made without a mortgage, which has protected this segment from the interest rate hikes that have affected other market levels.
Madrid vs. Other European Capitals
While Paris or London register prices of €20,000 or more per square meter in their prime areas, Madrid continues to offer high-end properties in prime locations for values between €10,000 and €15,000—a significant difference that hasn't gone unnoticed by the most discerning investors.
This remaining margin for growth has further solidified Madrid's image as a safe-haven city with substantial property value, and not just as a lifestyle destination.
What Can We Expect for 2025?
At BARNES Madrid, we anticipate a scenario of selective stabilization: the highest-quality properties will continue to see moderate increases, while less competitive properties (poorly located, unrenovated, or lacking distinctive features) may experience stabilization or even slight corrections.
Madrid is consolidating itself as a mature and sustainable market, where quality and location are more important than ever.
The price evolution between 2019 and 2024 confirms that Madrid has ceased to be an "emerging" capital and has become a consolidated destination for European luxury real estate. With increases of over 50% in many areas, and growing international demand, investing in prime real estate in the Spanish capital is now a strategic and long-term wealth decision.
At BARNES Madrid, we guide our clients through every step of this evolution: identifying opportunities, making thoughtful selections, and ensuring transactions with rigor, discretion, and a global vision.
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