Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Madrid

Madrid City prices register year-on-year increases and now surpass those of the peak in 2007.

Real Estate Market Analysis Q3 2019 - Madrid

It has been a fairly turbulent few months politically for Spain and the recent elections were once again inconclusive with no overall majority for Pedro Sánchez and his socialist party (PSOE). However they have reached a preliminary coalition deal with the anti-austerity Podemos party to try to form a government. This should bring greater stability to the country, which is good news for the country’s property market.

Read our full analysis of Spain’s property market here

Community of Madrid

Volume of Sales – Community of Madrid

Compared to the second quarter of 2014, the start of the property turnaround the number of transactions in the Community of Madrid in the second quarter of 2019 has risen from 12,865 to 20,119, an increase of just over 56%. The number of sales is now only 2% below the second quarter of 2007 (20,542 sales), around the peak of Spanish sales transactions. (Ministry of Development, Spain)

Year-on-year the number of sales transactions decreased by 17% in the second quarter of 2019. When compared to the first quarter of 2019 sales have risen by nearly 3%, however, showing the market has recovered quickly. (Ministry of Development, Spain)

New Homes Sales – Community of Madrid

Sales of new homes in the Community of Madrid represented 12% of the total number of sales in the second quarter of 2019, slightly higher than in the second quarter of 2018 (11%). The proportion has reduced significantly since the second quarter of 2007 when 45% of the total sales were for new homes. (Ministry of Development, Spain).

Prime Sales – Community of Madrid

Latest official data shows that the number of prime market sales transactions (over €900,000) in the Community of Madrid in the first quarter of 2019 increased by 13% compared to the prime sales in the first quarter of 2018, from 372 to 421 sales. The number of prime sales in the whole of 2018 (1,534 sales) has more than tripled compared to the number of prime sales in the whole of 2014 (433 sales). (Ministry of Development, Spain)

Value of Sales – Community of Madrid

The total value of sales transactions in the Community of Madrid in the second quarter of 2019 decreased by 8% over the amount of trading in the same period in 2018, but when compared to the first quarter of 2019 it rose by 10%. Compared to the second quarter of 2014 the total value of sales transactions has more than doubled but it is still 9% below that of the same quarter of 2007. (Ministry of Development, Spain)

Madrid City

Volume of Sales – Madrid City

The number of sales transactions in Madrid City in the second quarter of 2019 (10,382 sales) decreased by 20% compared to the same quarter in 2018 (12,931 sales), due to political uncertainty. However, sales have remained steady when compared to the first quarter of 2019 (10,383 sales). Compared to the second quarter of 2014 (7,121 sales) the number of transactions has risen by just over 46% and is now only around 2% below the second quarter of 2007 (10,236 sales). (Ministry of Development, Spain)

New Homes Sales – Madrid City

The number of sales transactions of new homes in Madrid City in the second quarter of 2019 (883 sales) decreased by 15% compared to the same quarter in 2018 (1,033 sales). However, sales of new homes have increased significantly (37%) when compared to the first quarter of 2019 (644 sales). Compared to the second quarter of 2014 (732 sales) the number of sales of new homes has risen by just over 20% but it is still 78% below the second quarter of 2007 (3,998 sales). (Ministry of Development, Spain)

Proportionally, new homes sales in Madrid City represented 9% of the total number of sales in the second quarter of 2019, slightly up from the second quarter of 2018 when sales of new homes represented 8% of the total number of sales. The proportion has reduced significantly since the second quarter of 2007 when 39% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Madrid City

Average property prices in Madrid City showed an annual increase of 3.3% in September 2019, ending the month on €3,770 per square metre. Average prices are 43% higher than they were in September 2014 and are now 9% higher than they were in September 2007. Average prices in the sought-after Centro and Salamanca districts also rose when comparing prices in September 2019 with those in September 2018, by 0.4% (€4,994 per square metre) and 2.4% (€5,788 per square metre) respectively. Prices in Chamberí remained steady with no annual change, averaging at €5,331 per square metre. Average prices in the up-and-coming district of Tetuán showed one of the more significant increases (4.8%), ending the month of September on €3,716 per square metre. Prices in these sought-after districts have gone up significantly since September 2014, by over 52% in Centro, by 49% in Chamberí, by 40% in Salamanca and by 43% in Tetuán. (Idealista, resale property prices)

Average Rental Prices – Madrid City

Average rental prices in Madrid City showed an annual increase of 5.3% in September 2019, ending the month on €16.4 per square metre. Average rental prices in Centro, Chamartín, Chamberí and Salamanca ended the month of September on €18.7 per square metre (1.3% increase), €16.5 per square metre (3.6% increase), €18.2 per square metre (4% increase) and €19.4 per square metre (2.7% increase) respectively. (Idealista)

Pozuelo de Alarcón

Volume of Sales – Pozuelo de Alarcón

The number of transactions in Pozuelo de Alarcón (201 sales) in the second quarter of 2019 decreased by 41% compared to the same quarter in 2018 (339 sales). However, they increased in the second quarter by more than 50% when compared to the first quarter of the year (131 sales). Compared to the second quarter of 2014 (151 sales) the number of transactions has risen by 33% and it is now also surpassing the number of sales around the peak in the second quarter of 2007 (156 sales), an increase of 29%. (Ministry of Development, Spain)

New Homes Sales – Pozuelo de Alarcón

Sales of new homes in Pozuelo de Alarcón represented 15% of the total number of sales in the second quarter of 2019, a slightly smaller proportion than in the second quarter of 2018 (17%). The proportion is still notably less than in the second quarter of 2007 when 24% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Pozuelo de Alarcón

Average property prices in Pozuelo de Alarcón showed an annual increase of 4.6% in September 2019, ending the month on €3,092 per square metre. Since September 2014 prices have increased by more than 16% in Pozuelo de Alarcón. (Idealista, resale property prices)

Average Rental Prices – Pozuelo de Alarcón

Average rental prices in Pozuelo de Alarcón showed an annual increase of 4.2% in September 2019, ending the month on €10.9 per square metre. (Idealista)

Tourism & Foreign Buyers, Madrid

The number of passengers arriving at Madrid-Barajas airport in the first nine months of 2019 was just over 46.5 million, an annual increase of 7% over passenger arrivals in the same period in 2018. (Aena)

International tourism in the Community Madrid in the first eight months of 2019 increased by 9% over the same period in 2018. The Community of Madrid hosted just over 5 million international tourists in the first eight months of 2019. (INE)

Foreign buyers in the Community of Madrid accounted for 6% of the total sales in the second quarter of 2019, a similar proportion to the second quarter of 2018, but higher than the proportion in 2012 when they accounted for just over 3% of all buyers. (Spanish Land Registry)

Lucas Fox Madrid Buyer Profile

Note the following figures are provisional:

  • INE (Tourism) (from January 2019)
  • Ministry of Development, Spain (from Q2 2019)

View Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Spain

View properties for sale in Madrid with Lucas Fox
View properties for sale in Pozuelo de Alarcón with Lucas Fox

Sell or rent your property quickly, and at the right price

We have a growing database of national and international clients actively looking to buy or rent property in Spain, Andorra and Portugal. Our in-house analytics team are experienced in pinpointing the right buyers or tenants for your property to ensure we can sell or rent your home faster.

Free property valuation

Get the Lucas Fox property newsletter for exclusive news, insight and analysis

Join mailing list Join mailing list