Madrid’s average house price reaches €2,732/m², ranking third in Spain. Explore the latest trends in Spain real estate from Gesvalt’s report.
In a striking development within the Spain’s real estate landscape, Madrid has reported a remarkable quarterly surge of 9.1% in house prices, as per the latest data from Gesvalt. The average price now stands at an impressive 2,732 euros per square meter, a stark contrast to the national average of 1,701 euros. This positions Madrid as the third most expensive region for housing in Spain, trailing only the Balearic Islands and Guipúzcoa.
The fourth quarter of 2024 has witnessed this significant uptick, with the Community of Madrid experiencing a year-on-year increase that underscores the mounting pressure on the housing market. The implications of this trend are profound, as the average price in Madrid has now eclipsed that of many other regions, reinforcing its status as a prime location for real estate investment.
Moreover, the rental market in the Community of Madrid has also seen a substantial year-on-year growth of 16.9%, with rental prices reaching 19.74 euros per square meter per month. This positions Madrid as the second most expensive region for rental housing in Spain, surpassed only by Barcelona. The upward trajectory of rental prices is not confined to Madrid alone; regions such as Murcia and various island territories have reported year-on-year increases exceeding 10%, establishing a consistent trend across the board.
Murcia leads the charge with a notable increase of 15.7%, followed closely by the Canary Islands at 14.1%, La Rioja at 11.5%, and the Balearic Islands at 11.3%. In contrast, Extremadura, Castilla y León, the Basque Country, and Galicia are the only regions where house prices have seen growth of less than 5% year-on-year, highlighting a stark divergence in market dynamics across the country.
At the provincial level, the most pronounced year-on-year increases in property prices were observed in Murcia (15.7%), Santa Cruz de Tenerife (14.9%), and Alicante (13.7%), among others. Notably, Ourense and Córdoba are the outliers, exhibiting declines in average sale prices of -3.3% and -0.3%, respectively.
As for rental prices, Barcelona and Madrid continue to dominate the landscape, with the Balearic Islands also maintaining a strong position. The provinces with the highest prices exhibit a stable pattern, with the Balearic Islands leading at 3,094 euros per square meter, followed by Guipúzcoa (2,965 euros), and Madrid (2,732 euros). Conversely, fourteen provinces still report values below 1,000 euros per square meter, with Ciudad Real (654 euros) and Cuenca (769 euros) standing out as the most affordable options.
The rental market’s upward trajectory is further corroborated by Gesvalt’s findings, which indicate that all Spanish provinces have experienced growth in rental housing prices compared to the previous year. Ávila has emerged as a surprising leader with a staggering increase of 19.6%, while Madrid’s 16.9% growth places it firmly in the upper echelon of rental price increases.
The Spain’s real estate market, particularly in Madrid, is undergoing a transformative phase characterized by significant price increases in both housing and rental sectors. As the demand continues to escalate, the implications for affordability and accessibility remain pressing concerns for policymakers and residents alike.
