The villa prime in the Community of Madrid, it is now 95% more expensive than in 2014. The average price per square meter increased from 1,773 euros to 3,462 euros, according to the Diza Market report prepared using data from the Notary Statistical Portal. In this work, Fernando Pinto and María Luisa Medrano, professors at the Rey Juan Carlos University, analyzed the market behavior in the five municipalities where the prices per square meter are the highest in the community, as well as in the five postal codes where the most expensive housing in the capital is located.
The main conclusion that emerged is that this increase is the result, among other factors, of the scarcity of supply, the arrival of “solvent, stable and growing buyers, of several nationalities”, as well as “the institutional and legal strength that Madrid projects as an equity investment destination”.
In the report, the first from the observatory created by the real estate agency Diza Consultores, the pandemic represents a turning point. From 2014 to 2019, prices continued “on an upward, but contained, trajectory”, with annual increases of between 4% and 8%, which implies a cumulative increase of 28%. The authors believe that during these years the expansion of the market, led by national buyers, was “orderly” and that Madrid began to consolidate itself as an attractive destination in the high-end residential sector.
Pinto highlighted, in the presentation of the report, the “resilience” of the market during the hardest months of the pandemic, when the price only fell by 1.5%, a difference compared to what happened in other European places.
From 2021, the pace of price growth has intensified significantly and recorded a cumulative increase of 54% until 2024. “International demand is intensifying, the shortage of high-end rehabilitated products is becoming more evident, and young buyers with strong purchasing power are gaining greater importance,” the study notes.
When analyzing the five zip codes prime of the capital (Recoletos, Castellana, Jerónimos, Ibiza-Niño Jesús and Almagro-Justicia), the report assures that each of them is like “an autonomous micromarket”, determined mainly by the quality and quantity of housing for sale and the level of international demand. The average price per square meter in these five areas is around 9,500 euros and reaches its maximum in Recoletos, better known as Moulin d’Or, with 11,562 euros.
Before the pandemic, price increases in these markets were “relatively homogeneous, driven mainly by domestic demand, investments in traditional assets and the scarcity of supply in the most consolidated areas”. Following the coronavirus, growth is accelerating in Ibiza-Niño Jesús and Almagro-Justicia, “driven by young expatriate buyers and international profiles”, who find in these areas an “optimal combination between urban lifestyle”, rehabilitated buildings and “commercial dynamism”. In the other three, price increases are sustained, the supply of real estate is “extremely limited” and “international demand for high-end assets continues to be dominant”.
Larger size and garden
Analyzing post-pandemic prices in the cities that make up the report (Madrid, Alcobendas, Pozuelo de Alarcón, Majadahonda, Tres Cantos and Boadilla del Monte), the authors observe a search for larger homes and gardens, as well as an increase in international clientele seeking “high quality” residential areas outside the urban center. Likewise, there was a “disbursement effect” in the “border municipalities” due to the pressure of demand felt in the capital. In Alcobendas, the most expensive square meter is recorded here, just over 5,000 euros, while Boadilla del Monte has seen the biggest increase in prices since then, up 63%.
A very simple way to understand what rising house prices mean prime In the Madrid capital you can see how many square meters you can acquire with a million euros, supporting professors Pinto and Medrano. Thus, an indicator is included in the report which deduces “the structural hardening of access to prime “They could buy between 240 and 330 square meters in 2014. In 2025, the average is 110 square meters,” assured Pinto.
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