House prices skyrocket by 18% in Madrid

It’s not just Lisbon that is suffering exponential house price rises. Prices in Madrid increased by 17.9% in the first quarter, to €4,600 per square meter, according to Expansión (paid access, in Spanish), which cites data from Tinsa by Accumin.

This increase has taken place within a rapidly accelerating real estate market in Spain, where prices are already shooting up by more than 14% year-on-year, the highest rate since 2007.

According to Expansión, the price increases in the Spanish capital were not uniform and were concentrated mainly in the more affordable districts, where demand shifted in response to rising prices in more expensive markets. San Blas led the increases, with a rise of 23.7%, followed by Puente de Vallecas, with 22.1%, and Salamanca, with 20.8%.

The newspaper also mentions that other districts such as Hortaleza, Retiro, Latina, Chamartín, Moratalaz, Ciudad Lineal, and Usera also registered significant increases, all above 17%. Even in areas with less variation, such as Vicálvaro, Centro, Villa de Vallecas, Moncloa-Aravaca, and Arganzuela, prices continued to rise by double digits.

According to Expansión, this evolution reflects demographic pressure on a limited housing stock, a scarcity of new construction, and a shift in demand towards peripheral areas with relatively lower prices. This trend suggests that housing appreciation in Madrid is expanding beyond prime areas, as the city centre becomes less accessible to a growing segment of the market.

Source: Expansión; Credits: Photo by Mario@masalladelcentro for Pexels