Insights

Madrid Leads the Luxury Real Estate Market with Record Prices

The luxury housing market in Madrid is booming, reaching historic price levels. According to Colliers, the price per square meter in this segment has reached €27,429/m², while luxury second-hand properties have peaked at €30,000/m². Prices are increasing at a rate of €1,150/m² per year, and it is expected that in prime areas they will exceed €30,000/m² by 2030.

Madrid has become the second most attractive destination for real estate investment in Europe, behind London. The city has established itself as a key destination for luxury tourism and international students, driving a 10% annual increase in prices.

The luxury market in Madrid is mainly concentrated in Salamanca (55% of the supply) and Chamberí (23%), with El Viso and the City Center accounting for the remaining 23%. Currently, there are 153 luxury properties for sale, spread across 22 projects. The rehabilitation of historic buildings and exclusive developments are driving geographic expansion in response to the shortage of properties in prime areas.

The market for branded residences (luxury homes with hotel services) is also growing. 34% of the available properties are classified as Ultra High-End (priced over €5 million), with prices exceeding €27,000/m². 47% are considered Premium properties (between €2 million and €3.5 million), while 19% fall into the High-End category (between €3.5 million and €5 million), with prices reaching up to €19,000/m².

New projects with an average price of €25,000/m² are expected to hit the market by the end of the year, reflecting the strength and increasing sophistication of Madrid's luxury residential market.