The capital city of Spain, Madrid is also Europe’s third largest city and the financial centre of Southern Europe. Despite its reputation as an international business hub, Madrid has retained its historic buildings and is famous for its urban sculptures, along with world class art galleries, museums, restaurants and fashion houses.
House prices continue to trend upwards and saw growth of 10.2% in 2017 following a decade when prices fell by an average 2.7% per annum.
Demand is strongest in the mid to highend segment of the market, and prices are currently rising the fastest in central Madrid as well as wealthier areas in the outskirts of the city. This has meant that price levels in affluent districts such as Salamanca, Chamartín and Chamberi are now close to the previous peak.
Although overall average prices remain below pre-crisis levels, the recovery is attracting developers back to the market. Permit approvals are up 30% on average year-on-year since 2015, although this is from a low base. Large metropolitan areas and regions with more dynamic jobs markets have seen the sharpest rise in the number of properties rented in the last decade, and this growth has been most pronounced in Madrid.
Strong rental demand is pushing rental prices up, particularly in tourist areas. This demand is now spilling into certain municipalities in the Madrid’s periphery, with rents at the higher end of the market rising the fastest.
On average, rents increased by 11.1% in 2017. Rental prices peaked in Q1 2018 but have since softened.
With yields of around 6%, Madrid is an attractive investment location with strong prospects for rental and capital growth in the near future.
Madrid is one of Europe’s best-connected cities with Adolfo Suárez Madrid–Barajas Airport being sited in close proximity to the financial and city centres, an extensive metro system and road network. A new project is underway to improve the metro system still further, upgrading trains, rails, signalling systems, ticket checking and ticket sales.
What you can buy in Madrid: Park & Palace
A redevelopment of the former Telefónica de España building, Park & Palace comprises 103 1, 2 and 3-bedroom apartments and 2 and 3-bedroom penthouses. Situated in the heart of Madrid, between the Royal Palace and the historical Parque del Oeste, this development has a spectacular location. Each level of the building is staggered to ensure residents can enjoy the views from both terraces and other rooms.
|Address: Calle de Irún, 15|
|Status: Under construction, completion in Q1 2021|
|Number of units: 113|
|Average price: $740 psf|
|Architect: Olalquiaga Architects|
The residents will benefit from a range of amenities such as a rooftop pool and open-air terrace, a tranquil courtyard garden and pond, a ground floor garden-facing gym, 24-hour concierge, and automatic garage door with number plate recognition. The surroundings are set to become even greener with nearby Plaza de España having just embarked on a regeneration project, which will see 60,000 of its over 70,000 sq m become pedestrianised and over 1,000 trees to be planted.