MADRID, SPAIN
The second-largest city in the European Union, Madrid is the political, economic and cultural center of Spain and the leading economic hub of southern Europe. The city’s luxury property market has been undergoing notable growth, sustained by a robust economy, labor market stability, and significant foreign investment, particularly from North America and Latin America. Spain’s economy was projected to increase by 3% in 2024 – four times faster than the rest of the Eurozone. The country’s economic stability has been fundamental for its real estate market, bolstering market confidence, encouraging investment, and generally sustaining high demand. An upward pressure on prices, especially in central and well- connected transit nodes, is a natural consequence of high demand, which can make property purchases both attractive and more expensive, says Hans Veenhuijsen, owner and CEO of Christie’s International Real Estate Madrid. While historic properties in prestigious neighborhoods like Salamanca and Chamberí remain popular, high-end developments are transforming areas such as Madrid Río and northern districts like Chamartín. Additionally, Madrid has seen an increase in sustainable building practices, catering to environmentally conscious buyers. Luxury properties in the exclusive Salamanca district fetch some of the highest prices in the nation, averaging €8,000 to €22,000 per square meter (US$781-$2,044/sq ft). Since 2013, the country’s Golden Visa program has been a boon to the market, allowing residency in exchange for real estate purchases of more than €500,000 (US$525,483). However, the program, enacted to boost the Spanish economy and increase foreign investment, has sunset as of January 1, 2025. Emerging trends such as telecommuting could influence the demand for housing in peripheral areas if professionals choose to live farther from the city center, while the development of new infrastructure and urban projects could alter market dynamics, Veenhuijsen adds.
He is optimistic about the continued growth of the Madrid real estate market through 2025. “Demand is likely to remain strong, but investors and buyers should be mindful of fluctuations and emerging trends that could impact the market,” he says.
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