MADRID PROPERTY PRICES ON THE UP

Prices for premium residential property in Madrid have risen further in the past year; “Whilst the prime locations saw the most dynamic growth in 2015, the average locations are now catching up. It was here that the highest price rises were recorded in 2016,” said Paloma Pérez Bravo, Managing Director of the Engel & Völkers Market Center Madrid, adding: “We see this development as a positive sign that the residential property market in Madrid is now in a period of recovery.”

Investors and wealthy families favour the Chamartín district

Located in the north of Madrid, it is one of the most expensive districts and important economic centres in the Spanish capital. The large number of educational and medical institutions and the good connections to the airport make Chamartín an interesting location for investors and 80% of buyers are Spanish citizens. Affluent families tend to be drawn in Chamartín to the El Viso neighbourhood in particular, with its abundance of substantial detached properties and penthouses. Prices per square metre for exclusive homes here can reach up to 15,000 euros.

Desirable: Chamberí's former palaces

The Chamberí district with its many palaces was a popular place of residence with the aristocracy in the 19th and 20th centuries. Nowadays, there is great interest in residential property here among Spanish families and international buyers who move to Madrid for professional reasons or are looking for an investment opportunity. The highest prices per square metre are up to 12.800 euros in the sought-after Almagro quarter. In this price category, many buyers are looking for existing residences that they can convert and refurbish.

Hortaleza popular with French buyers

The Hortaleza district is characterised by its large variety of different property types, as well as the diversity of the buyer profile and prices. The highest priced properties here are found in the Piovera neighbourhood, reaching up to 10,500 euros per square metre. Spanish and international families with high incomes look here for detached residences. The majority of international buyers are French families who are drawn to the area because of its proximity to the French international school.

High demand for residential property in Centro 

The Centro district is in the historic centre of Madrid with famous sights including the Royal Palace and the Plaza Mayor. Its central location attracts national and international investors looking for real estate as a medium or long-term investment. Centro is also in strong demand with young professionals who are looking for 2 bed/2 bathroom apartments. With prices per square metre of up to 8,300 euros, Justicia is the most expensive neighbourhood in this district. Due to high demand, many prospective buyers are also interested in the neighbouring district of Embajadores, which has developed over the past year into an attractive location.

National and international demand in Retiro.

The Retiro district is especially sought-after by wealthy families and international buyers. Here, the Jerónimos neighbourhood is very popular with overseas buyers mainly from Europe and Latin America. They are drawn by the elegant flair and the multitude of historic sights and monuments such as the Puerta de Alcalá and the Museo del Prado. With prices per square metre of up to 8,000 euros, Jerónimos is also the most expensive area of Retiro.

Exclusive residential addresses in Salamanca

Many prestigious buildings dating from the late 19th century grace the avenues of the Salamanca district, which is home to Spain's political and financial elite. Premium properties here are particularly popular with Latin American buyers from Venezuela, Colombia and Mexico, as well as with buyers from the UK, France and Switzerland.  The most requested properties are large detached residences in the Recoletos neighbourhood and prices for exclusive homes here can reach up to 8,000 euros per square metre.

Outlook: Upward trend set to continue 

The residential property market in Madrid is set to continue on its positive course of growth. The level of new construction will be sustained and is likely to see a slight short-term increase in the availability of properties in desirable locations.  However, overall the supply of properties in the capital will remain limited. For this reason Engel & Völkers forecasts further price rises. “We anticipate that sale prices for residential property in Madrid will increase by 4% on average over the remainder of this year,” said Paloma Pérez Bravo.