The price of housing in the Community of Madrid has reached historical highs in December 2024, with 3,771 euros per square meter, 17.5% more than a year ago, and a quarterly increase of close to 6%, according to the Idealista portal. This year-on-year increase is the highest in Spain, followed by the Canary Islands, Murcia and the Valencian Community. Over the last year, the city of Madrid has positioned itself as the second most expensive capital in the country to buy a home, ahead of Barcelona and behind Donostia – San Sebastián, with 4,952 euros/m².
The Spanish real estate market will continue its upward trend in 2025, with forecasts for increases in housing prices of between 5% and 10%, according to real estate portals, banks and other organizations. All entities agree in highlighting an even greater increase in rental prices and the special impact of the increase in those stressed areas, especially in large cities and coastal areas of the country.
The variation with respect to housing prices in Madrid since seven years ago is 130%. Then, it stood at 2,152 euros/m². These data, based on the offer prices published in Idealista, reflect a sustained upward trend that has been accentuated year after year, consolidating Madrid as one of the regions with the highest real estate prices in Spain and with a serious problem of access to housing that has shaken up the social and political landscape.
The different projections for 2025: rising prices
House prices in Spain will rise between 4% and 6% in 2025, according to the Fitch agency. The same report also forecasts even higher growth for 2026, between 5% and 7%, driven, among other factors, by increased demand. The agency points out that over the next few years the supply will continue to be “insufficient” and agrees with other organizations in emphasizing that prices will continue to skyrocket in large cities like Madrid.
According to the report ‘III Solvia Market View 2024’from the Solvia real estate agency, the price of housing will grow between 4% and 5% in 2025, slightly moderating its rise compared to this year, which will close with increases of between 5% and 7% in the whole of the year. State. The report also highlights the escalation of rental prices, given that they foresee an increase of more than 10% in 2025, similar to that of the last year. Despite the pressure on supply and demand, Solvia rules out the risk of a real estate bubble in Madrid like the one in 2008.
In the districts of Madrid, according to the same source, Salamanca (€6,219/m²), Chamberí (€5,857/m²) and Chamartín (€5,207/m²) lead in prices, while Barajas was the only area with a slight drop in price. 0.1%. The year-on-year increases in Moratalaz stand out, with a notable 27%, while Vicálvaro had a more modest increase, of just over 1%.
Data from the National Institute of Statistics (INE) point to record records in Spain as a whole, with records close to 70,000 purchase and sale operations in October 2024. The operations have reached levels similar to those of the 2007 boom, with the highest increase since August 2021 and the highest figure since May 2007. The sale of new homes has grown by 83.4%, reaching 16,224 transactions, while that of used homes increased by 43.6%, with 53,194 transactions, record figures since 2007.
However, despite the dance of figures, the organizations agree that the escalation of prices, both for renting and buying and selling housing in the Community of Madrid, will not stop during 2025.
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