Explore the surge in luxury housing prices in Madrid and Barcelona for 2024, with rates reaching €14,000 and €15,000 per sqm, respectively.
In 2024, the luxury real estate markets of Madrid and Barcelona have emerged as frontrunners in the upward trajectory of housing prices, as reported by Savills. Last year, the price per square meter in Madrid approached an impressive 14,000 euros, while Barcelona’s high-end segment fluctuated between 11,000 and 15,000 euros per square meter.
The luxury housing sector is undeniably on an upward trend, with Madrid and Barcelona leading the charge among the world’s major cities. The two cities recorded remarkable price increases of 9.4% and 8.6%, respectively, compared to the previous year. This positions them within the top five cities projected for significant growth in the upcoming months, according to the latest World Cities Prime Residential index by Savills. This index meticulously examines the pricing of ultraprime and prime residences, alongside emerging prime markets in each city.
Despite these notable increases, the report indicates that the average prices in the prime markets of Madrid and Barcelona still lag behind those of their southern European counterparts. In fact, they have considerable ground to cover when compared to the likes of Paris and London. Savills forecasts further appreciation in both cities throughout the year, predicting a prime house price increase ranging from 4% to 5.9%. Meanwhile, Dubai is anticipated to lead the pack in 2025, with expected increases between 8% and 9.9%.
On a global scale, Savills anticipates that the luxury housing market will remain in “positive territory” throughout 2025, with an average growth of 1.6% across the thirty cities analyzed in their study. This figure, however, falls short of the 2.2% average recorded in 2024.
Turning to the rental market, Madrid and Barcelona also experienced robust growth in 2024, with rental prices surging by more than 5% annually. The supply of rental properties remained “scarce” in both cities, further fueling the upward trend in rental prices. Notably, rents for high-end residential properties continued to outpace equity values, although a decline in interest rates has begun to narrow the gap between the two.
Among the thirty cities surveyed, 25 reported positive growth in lease values for 2024, with an average increase of 4.3% for the index as a whole. Looking ahead to 2025, the international real estate consultancy forecasts a “slight increase” in prime rental prices across all cities included in the index, albeit with the caveat that such growth is likely to remain below historical averages.
