Is Property in Madrid Expensive?

By Robert Palmer

If you’re considering buying a property in Madrid, one of the first questions that may come to mind is whether property in the Spanish capital is expensive. The answer to this question isn’t straightforward, as it depends on several factors.

Factors Affecting Property Prices in Madrid

One of the main factors that influence property prices in Madrid is location. Properties located in prime areas such as Salamanca, Chamberí and Retiro tend to be more expensive than those located in less central neighborhoods. Additionally, properties with views of landmarks or parks also command higher prices.

Another factor is the type of property you’re looking for. Apartments tend to be more expensive than houses, although this may vary depending on the neighborhood and amenities offered by each property.

The condition of the property also plays a role in its price. Newly built or renovated properties are likely to be more expensive than older ones that may require renovation or maintenance work.

Average Property Prices in Madrid

According to data from idealista.com, a leading Spanish real estate website, the average price per square meter for a property in Madrid was €2,700 as of June 2021. This represents an increase of 1.9% compared to the same period last year.

Prices vary depending on the neighborhood. For example, Chamartín is one of the most expensive neighborhoods with an average price per square meter of €4,300, while Villaverde is one of the cheapest with an average price per square meter of €1,200.

Buying vs Renting Property in Madrid

While buying a property can be a good investment in the long term, it’s worth considering whether renting may be a better option for you depending on your circumstances.

Renting allows for more flexibility and can be less costly upfront since you don’t have to pay for expenses such as taxes and maintenance fees that come with owning a property. Additionally, if you’re unsure about how long you’ll be staying in Madrid, renting may be a better option since it allows you to easily move out when needed.

On the other hand, owning a property can provide stability and potential returns in the future if property prices continue to rise. It also allows for more control over the property and the ability to make changes as desired.

Conclusion

In summary, whether property in Madrid is expensive depends on various factors such as location, type of property, and condition. While prices have increased slightly in recent years, there are still affordable options available depending on your needs and preferences.

Ultimately, whether to buy or rent a property in Madrid depends on your personal circumstances and financial situation. Weighing the pros and cons of each option carefully can help you make an informed decision that best fits your needs.