MADRID
In 2025, all eyes are on Madrid as the Spanish capital continues to attract buyers both locally and from around the world. This consistently high demand can be attributed to the country’s economic stability, a wide range of real estate options, favorable tax policies and the city’s vibrant, friendly culture, according to Olga García Hernández, managing director and partner at Christie’s International Real Estate Madrid.
Notably, Madrid has seen an increase in young professionals and entrepreneurs seeking luxury properties as primary residences, second homes or investment assets.
All of this demand, however, exceeds the supply of luxury housing in Madrid, putting upward pressure on prices and enhancing the exclusivity of the market. This was never truer than in 2024, when in April, housing prices jumped by nearly 11% year over year, the highest such surge in Europe. This squeeze on the market has done little to spur new construction in Madrid, according to García Hernández. “While we’ve seen an increase in the renovation of luxury properties, as well as some high-end development, new house building remains at historic lows,” she says. “Combine that with an unyielding demand, and we can predict continued price growth well into 2025.”
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