Lucas Fox Spanish Real Estate Market Analysis 2019: Madrid

Prime and new homes sales are on the up in the Community of Madrid during 2019, while the overall number of transactions falter.

Market Analysis Madrid & Pozuelo

Market Analysis: Madrid 2019

After two general elections in nine months, Spain now has its first ever coalition Government, made up of the Socialist Party (PSOE), headed up by Pedro Sánchez and Unidas Podemos with its leader Pablo Iglesias. The new coalition will hopefully bring some level of stability after a fairly turbulent year politically and will be addressing political, territorial and social dimensions, which could be challenging but could see some positive outcomes.

Read our full analysis of Spain’s property market here

Madrid City

Average Sales Prices – Madrid City

Average property prices in Madrid City showed an annual increase of 1.3% in December 2019, ending the year on €3,732 per square metre. Average prices are almost 39% higher than they were in December 2014 and are now almost 7% higher than they were in December 2007, around the time of the peak. Average prices in the sought-after Centro and Salamanca districts also rose when comparing prices in December 2019 with those in December 2018, by 1.7% (€4,973 per square metre) and 2.9% (€5,710 per square metre) respectively. Prices in Chamberí remained steady with very little annual change, averaging at €5,301 per square metre. Prices in these desirable districts have seen prices rises of just over 52% in Centro, by just over 48% in Chamberí and by almost 42% in Salamanca since December 2014, the start of the property turnaround. Year-on-year Chamartín registered an annual decrease in December 2018, of .2.7% (€5,056 per square metre), but since December 2014 they have increased by almost 30%. Europe’s biggest ever urban regeneration scheme currently taking place in Charmartín is expected to have a significant impact on prices in the area. (Idealista, resale property prices)

Average Sales Price Madrid City

Average Rental Prices – Madrid City

Average rental prices in Madrid City showed an annual increase of 4.4% in December 2019, ending the year on €16.1 per square metre. Average rental prices in Centro, Chamartín, Chamberí and Salamanca also all increased, ending the year on €18.7 per square metre (2.3% increase), €16.3 per square metre (2.6% increase), €18.1 per square metre (0.3% increase) and €18.9 per square metre (2.9% increase) respectively. It is the sixth year in a row that Madrid City has seen annual rental increases. Average rental prices across the city as a whole have risen by just over 41% since December 2014. (Idealista)

Volume of Sales – Madrid City

Following the national trend, the number of sales transactions in Madrid City in the first nine months of 2019 (29,363 sales) decreased compared to the same period in 2018 (32,875 sales), by 10.7%. Compared to the first nine months of 2014 (20,209 sales) the number of transactions has risen by just over 45% and it has also now surpassed the number of sales in the same period in 2007 (28,138 sales), by 4.4%. (Ministry of Development, Spain)

Property Transactions Madrid City

New Homes Sales – Madrid City

The number of sales transactions of new homes in Madrid City in the first nine months of 2019 (2,431 sales) increased by 5.9% compared to the same period in 2018 (2,295 sales). Compared to the first nine months of 2014 (1,937 sales) the number of sales of new homes has risen by 25.5% but it is still just under 77% below the same period in 2007 (10,424 sales). (Ministry of Development, Spain)

Proportionally, new homes sales in Madrid City represented 8.3% of the total number of sales in the first nine months of 2019, up from the same period in 2018 when sales of new homes represented 7% of the total number of sales. The proportion has reduced significantly since the first nine months of 2007 when 37% of the total sales were for new homes. (Ministry of Development, Spain)

Pozuelo de Alarcón

Average Sales Prices – Pozuelo de Alarcón

Average property prices in Pozuelo de Alarcón showed an annual increase of 2% in December 2019, ending the year on €3,032 per square metre. Since December 2014 prices have increased by more than 14.5% in Pozuelo de Alarcón. (Idealista, resale property prices)

Average Sales Price - Madrid

Average Rental Prices – Pozuelo de Alarcón

Average rental prices in Pozuelo de Alarcón showed an annual increase of 4.4% in December 2019, ending the year on €10.8 per square metre. (Idealista)

Volume of Sales – Pozuelo de Alarcón

The number of transactions in Pozuelo de Alarcón in the first nine months of 2019 (543 sales) decreased by just over 29% compared to the same period in 2018 (766 sales). Compared to the first nine months of 2014 (480 sales) the number of transactions has risen by 13.1% but it is still 8.6% below the number of sales around the peak in the first nine months of 2007 (594 sales). (Ministry of Development, Spain)

New Homes Sales – Pozuelo de Alarcón

Sales of new homes in Pozuelo de Alarcón represented 13.8% of the total number of sales in the first nine months of 2019, a slightly larger proportion than in the same period in 2018 (13.1%). The proportion is still notably smaller than in the first nine months of 2007 when just over 47% of the total sales were for new homes. (Ministry of Development, Spain)

Community of Madrid

Volume of Sales – Community of Madrid

Compared to the first nine months of 2014 the number of transactions in the Community of Madrid in the same period in 2019 rose from 35,719 to 56,371, an increase of almost 58%. However, year-on-year the number of sales transactions in the first nine months of 2019 registered a decrease of 9.4% and it is still almost 7% below the number of sales in the same period in 2007 (60,511 sales). (Ministry of Development, Spain)

Property Transaction Community of Madrid

New Homes Sales – Community of Madrid

Sales of new homes in the Community of Madrid represented 12.2% of the total number of sales in the first nine months of 2019, a larger proportion than in the same period in 2018 (10.3%). The proportion is significantly smaller than in the first nine months of 2007, however, when just over 47% 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 six months of 2019 (for which data is available) increased by almost 5% compared to the prime sales in the same period in 2018, from 799 to 838 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 first nine months of 2019 (€13.33 billion) decreased by 3% over the amount of trading in the same period in 2018 (€13,74 billion). Compared to the first nine months of 2014 (€6.35 billion) the total value of sales transactions has more than doubled but it is still 10.2% below the total value in the same period in 2007 (€14.85 billion). (Ministry of Development, Spain)

Tourism & Foreign Buyers, Madrid

The number of passengers arriving at Madrid-Barajas airport in 2019 was just over 61.7 million, an annual increase of 6.6% over passenger arrivals in 2018. (Aena)

International tourism in the Community Madrid in the first eleven months of 2019 increased by 7.5% over the same period in 2018, with the region hosting just over 7.1 million visitors. (INE)

Foreign buyers in the Community of Madrid accounted for 5.7% of the total sales in the third quarter of 2019, a similar proportion to the third quarter of 2018, but larger than the proportion in the whole of 2012 when they accounted for just over 3% of all buyers. (Spanish Land Registry)

Lucas Fox Madrid Buyer Profile

LF Madrid Buyer

Note the following figures are provisional:

INE (Tourism) (from January 2019)
Ministry of Development, Spain (from Q3 2019)

View Lucas Fox Spanish Real Estate Market Analysis 2019: Spain

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