In 2018, the average transaction price in the Spanish housing market was approximately 12,400 RMB/square meter. However, housing prices vary across different cities in Spain, and there are also gaps between districts within the same city. As the capital and the largest city in Spain, Madrid serves as the political, economic, and cultural center, attracting many real estate investors. What are the current housing prices in the various districts of Madrid?
Average housing price in the Salamanca district reaches 6,470 EUR/square meter
According to a report by the newspaper Cinco Días, the report from the real estate company Engel & Völkers on the Madrid housing sales market from 2018 to 2019 shows that the Salamanca district, located adjacent to the Retiro and Centro districts, has always been the most prestigious area in the city, with an average housing price of 6,470 EUR/square meter. The average housing price in the Recoletos area of this district is 7,060 EUR/square meter, and prices in areas near the Recoletos metro station can reach 11,000 EUR/square meter. However, in the Fuente del Berro area, also within the Salamanca district, the average housing price is only 4,697 EUR/square meter.
The average housing price in the Castellana area, located in the Salamanca district, is 6,500 EUR/square meter; in the Goya area, it is 5,876 EUR/square meter; and in the Lista area, it is 5,806 EUR/square meter. The maximum housing prices in these areas can reach 10,000 EUR/square meter, 9,355 EUR/square meter, and 9,230 EUR/square meter, respectively.
The Retiro and Centro districts rank second and third in average housing prices, at 5,349 EUR/square meter and 5,170 EUR/square meter, respectively. In the Retiro district, housing prices in the Jerónimos area are 7,000 EUR/square meter, and in the Ibiza area, they are 5,140 EUR/square meter; in the Centro district, the average housing price in the Justicia area is 6,100 EUR/square meter, and in the Cortes area, it is 5,500 EUR/square meter.
Within the Community of Madrid, which cities have high housing prices?
Reports indicate that within the Community of Madrid, Pozuelo de Alarcón and Majadahonda remain cities with higher housing prices, with an average purchase price of 3,000 EUR/square meter.
The area with the highest average housing price in Pozuelo de Alarcón is Avenida de Europa, at 3,864 EUR/square meter. The average housing price in areas near the Monte del Pilar and Golf metro stations in Majadahonda is 3,400 EUR/square meter. "Although the purchase prices in some areas seem lower, most of the properties there have gardens and land, so the average price decreases," said Constanza Maya, Operations and Franchise Manager at Engel & Völkers.
The average housing price in La Moraleja, located in the city of Alcobendas in the Community of Madrid, is 4,151 EUR/square meter. The area with the highest housing prices in this town is El Encinar de los Reyes, where the average housing price per square meter is 4,900 EUR, reaching up to 5,639 EUR/square meter. Maya stated: "In this area, ground-floor apartments and penthouses are quite popular. In addition to Spanish and other European clients, there are also many Mexican and Venezuelan clients."
Spanish housing prices show a clear upward trend, with short-term rentals acting as a "driver"
In 2018, the average transaction price for housing in Spain was 1,619 EUR/square meter, showing a clear upward trend and making it the year with the fastest housing price growth in a decade. Data released by the Spanish Ministry of Development shows that the cities with the highest average purchase prices in 2018 were: San Sebastián, 3,590 EUR/square meter; Barcelona, 3,362 EUR/square meter; Sant Cugat del Vallès, 3,331 EUR/square meter; Santa Eulalia del Río, 3,224 EUR/square meter; Madrid, 3,103 EUR/square meter; Pozuelo de Alarcón, 3,901 EUR/square meter; and Majadahonda, 3,020 EUR/square meter.
It is reported that the development of the Spanish tourism industry has led to 90% of properties being used for short-term rentals, which is one of the main reasons for the rise in housing prices.