Property prices grew by 18.7% in Madrid in 2018
Overall, property prices in Madrid grew by 18.7% last year. If we unzoom, the Spanish capital seems to be on the way to recover real estate prices closer to what it was before the crisis.
Price of a square meter in Madrid: 3.000€
On average, a square meter now costs 2.964€ according to TINSA. Yet, not all neighborhoods are equal:
- Centro 4.426€
- Arganzuela 3.750€
- Retiro 3.872€
- Salamanca 4.929€
- Chamartín 4.371€
- Tetuán 3.392€
- Chamberí 4.783€
- Fuencarral-El Pardo 3.190€
- Moncloa-Aravaca 3.633€
- Latina 2.130€
- Carabanchel 1.987€
- Usera 1.872€
- Puente de Vallecas 1.726€
- Moratalaz 2.376€
- Ciudad Lineal 2.836€
- Hortaleza 3.100€
- Villaverde 1.637€
- Villa de Vallecas 2.205€
- Vicálvaro 2.130€
- San Blas 2.365€
- Barajas 2.927€
Highest rental yields in Madrid
What’s also interesting, is that rental yields in Madrid are on average of 4.3%. However this doesn’t include the potential for price growth ahead. Some neighborhoods such as Puente de Vallecas or Villaverde top the ranking.
Neighborhoods where property prices grew the most
Yet another interesting thing, is to consider the neighborhoods in Madrid where real estate prices grew the most. According to Fotocasa’s report, the neighborhoods in red below grew more. Therefore, Usera, Puente Vallecas, Arganzuela but also Retiro and Salamanca did well, with growth superior to 15% year on year.
Comparing Madrid with the rest of Spain
Nationally, property prices in Spain are still 35% below their peak (2008). Although Madrid’s real estate prices are higher than Valencia (1.391€/m2) and lower than Barcelona (3.389€/m2), we can and should compare it to other European capitals. At 3.000€/m2 approximately, it is still very far from Paris (10.000€/m2) and still quite close from Lisbon (2.581€/m2).