Introduction

Madrid’s real estate market has remained active in 2024, with significant contributions from both domestic and foreign buyers. Property prices have continued to rise, making Madrid one of the most dynamic housing markets in Spain and Europe. This report examines key transaction figures, the role of foreign buyers, and prevailing market trends.

Transaction Overview

Between January and June 2024, the Madrid region recorded a total of 42,771 property transactions. Of these, 21,739 transactions took place within the Madrid municipality, representing approximately 50.8% of the total regional market. This highlights the capital’s enduring appeal to homebuyers and investors alike.

Foreign Buyer Participation

Foreign buyers accounted for 4,376 transactions in the Madrid region, making up 10.2% of all property sales. Among them:

• 566 were non-resident buyers
• 3,810 were resident foreigners

While data on foreign purchases specifically within Madrid city is unavailable, applying regional trends suggests that approximately 2,188 foreign buyers purchased within the city limits, with around 219 of these being non-residents.

Luxury Market Dynamics

Madrid has solidified its position as a leader in Spain’s luxury housing market. According to a report by PwC and the Urban Land Institute (ULI), Madrid is ranked as the second most attractive European city for real estate investment.

Luxury home prices have reached up to €25,000 per square meter in some exclusive developments. Currently, there are around 30 high-end new-build projects under construction, alongside more than 100 classic buildings undergoing renovation, further transforming the city’s prime districts. This demand is driven by international buyers, particularly from Latin America and the United States, who are drawn to Madrid’s legal security, quality finishes, and premium amenities.

Popular Neighborhoods & Buyer Profiles

• Salamanca and Chamberí remain the top choices for luxury homebuyers.
• Mexican, Venezuelan, and Colombian investors are among the leading buyers.
• Many buyers use these properties as temporary residences or for their children studying in Spain.
• The average investment for international buyers is €2.5 million, which is twice the national average of €1 million.

Market Trends & Pricing

The Madrid property market continues to experience significant price growth. In April 2024, Madrid recorded the fastest-rising house prices in Europe, with a 10.6% year-over-year increase. Strong economic fundamentals, a favorable climate, and a vibrant cultural scene further boost Madrid’s appeal to investors.

New Build vs. Resale Demand

New-build properties remain highly sought after, with developers focusing on modern, energy-efficient homes that cater to both local buyers and international investors. Several key projects are set to launch in 2025, further shaping Madrid’s high-end property market. Meanwhile, the resale market remains competitive, particularly in central districts where supply is more limited.

Looking Ahead

The full-year market data will be available in March 2025, providing further insights into Madrid’s evolving real estate landscape. The luxury segment is expected to continue growing, with international demand playing a crucial role. Developers are increasingly leveraging digitalization and artificial intelligence to streamline transactions and offer more personalized services to buyers.

Conclusion

Madrid’s real estate market demonstrated resilience and growth in 2024. With strong transaction numbers, increasing foreign interest, and rising property values, the city remains one of Europe’s top real estate investment destinations. The outlook for 2025 suggests continued expansion, particularly in the high-end sector, as Madrid attracts international capital seeking stability and quality living.