Compared to January last year, housing prices have risen by more than 14%. At the same time, demand remains high and supply is limited.
The gap between Madrid and the rest of Spain is quite tangible. The average price per square meter across Spain is half as low as in the capital and barely reached 2,650 euros.
The main driver is the activity of buyers in the central districts of Madrid. A significant role is played by investors, including foreign investors. In premium locations, prices exceed 10 thousand euros per square meter, reflecting the growing segment of high-end real estate.
Today, the most expensive areas of Madrid – Salamanca (10 thousand euros per square meter), Chamberi (8 873 euros), Chamartin (7 971 euros), Retiro – (7 691 euros), Centro (7322 euros). The cost of an apartment of 70-80 square meters in these areas can easily be estimated at one million euros.
Why housing in Madrid is becoming more expensive
According to La Sotogga, analysts attribute the record price growth to a number of factors. First, it is a high demand for housing in the central and prestigious areas. Secondly, it affects the limited supply of new objects on the market. In addition, there is still high activity of both local and foreign buyers.
These price dynamics add to the pressure on housing affordability, as Madrid remains one of the most expensive cities in Europe in terms of housing costs. Combined with the nationwide rise in real estate prices, this continues to form a challenging situation in the Spanish housing market.
Experts say: without an increase in construction, the pressure on prices will continue. This increases the problem of housing affordability, especially for young families and middle-income buyers.
