Property prices in Madrid: trends and prices by neighbourhood

Property prices in Madrid in 2026: how they have changed, the gaps between neighbourhoods and the costs to plan for when buying.

The Remoters editorial team

Published on

19 June 2024

Updated on

6 October 2026

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Property prices in Madrid have never been this high. In the second quarter of 2026, home sales recorded in the city's land registry were made at an average of €5,534 per square metre, 12.2% more than a year earlier, according to the quarterly statistics of the Colegio de Registradores. Madrid is the second most expensive provincial capital in Spain, behind San Sebastián (€6,420/m²) and ahead of Barcelona (€5,045/m²).

Asking prices in listings are higher still: €6,624/m² on average in July 2026 in the capital, according to the Fotocasa portal index quoted by ABC, or around €529,900 for an 80 m² apartment. This page explains how prices have changed, what they are worth neighbourhood by neighbourhood, and what to budget for on top of the price when buying in Madrid.

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A long rise, then an acceleration

To read the change in prices over the years, the most solid indicator is the repeat-sales index of the Colegio de Registradores, which compares the prices of the same home when resold. Across Spain, it reached a new record in the second quarter of 2026, 39.31% above the 2007 peak, the one before the bubble burst. Since the low point of 2014, the cumulative rise has reached 127.68%, of which 16.7% over the last twelve months.

The Community of Madrid follows this movement, a little above the average. The housing price index of the National Statistics Institute (INE) shows an annual rise of 12.9% there in the second quarter of 2026, against 12.2% for the country as a whole. Nationally, the rise is stronger for existing homes (12.9%) than for new ones (7.4%).

Recorded prices and asking prices: two different measures

Two families of figures circulate, and you need to know how to tell them apart:

Recorded prices (Registradores, INE) cover sales that were actually completed. They arrive with a delay of a few months, but reflect what buyers paid. In the Community of Madrid, the average recorded price was €4,477/m² in the second quarter of 2026 (€4,062 for new homes, €4,581 for existing ones), the highest in Spain.
Asking prices (portals such as Fotocasa) cover listings. They react faster, but include the negotiating margin. In the Community of Madrid, existing homes were listed at €5,455/m² in July 2026, 12.3% more than a year earlier.

To set a budget, start from the asking prices in the neighbourhood you are aiming for; to judge an offer, compare it with recorded sales.

Prices by neighbourhood

The gaps between districts are very marked. According to asking prices for existing homes in July 2026 (Fotocasa, via ABC):

Salamanca now exceeds €10,000/m², at €10,682/m²;
Chamberí follows at €9,327/m², then Retiro at €8,563/m² and Chamartín at €8,401/m²;
Villaverde remains the cheapest of the districts studied, at €3,062/m², but it saw the biggest rise over one year, at 29.8%.

The catch-up of the most affordable neighbourhoods is clear. After Villaverde come Villa de Vallecas (+24.5% in one year), Moratalaz (+18.5%), Usera (+15.9%), Carabanchel (+15.4%) and Puente de Vallecas (+15.2%). In other words, the gap between the centre and the south of the city is narrowing, but the south is still two to three times cheaper per square metre than Salamanca.

On the rental side, the capital is also the most expensive city in Spain: €23.2 per square metre per month in July 2026 according to Idealista (+5.8% over one year), ahead of Barcelona (€20.1). A useful benchmark if you are comparing buying and renting for a long stay.

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What buying costs on top of the price

The asking price is not the total cost. In the Community of Madrid, buying an existing home bears the property transfer tax (ITP) at a rate of 6%: €18,000 for a €300,000 property. For a new home, the stamp duty on documented legal acts (AJD) applies, at a rate of 0.75%, on top of VAT.

On 5 October 2026 the regional government announced two reductions from 1 January 2027, for buyers aged 40 or under who live in the region, and for homes not exceeding €450,000: ITP would fall to 4% and AJD to 0.4%. These measures must be written into the 2027 regional budget; check that they have been adopted before counting on them.

Add notary fees and land registry registration fees, as well as, if you borrow, the costs linked to the loan.

Financing a purchase in Madrid

The credit figures show the effort asked of households. According to the Registradores, in the second quarter of 2026:

the average mortgage amount in the Community of Madrid was €287,633, the highest in Spain;
the average monthly payment there reached €1,311, or 44.5% of the average labour cost, against 34.3% for the country as a whole;
the average rate on new loans was 3.03% nationally, and 2.9% in the Community of Madrid, one of the lowest.

The share of foreign buyers

Foreigners weigh ever more heavily in the Spanish market: they made 15.98% of home purchases in the second quarter of 2026, a record, or just over 26,800 purchases. The British come first (6.99%), ahead of the Dutch and the Germans; the French account for 4.97% of purchases by foreigners. The province of Madrid has the largest number of sales in the country, with 19,274 transactions over the quarter.

Buying in Madrid from abroad: the method

Set your area and your size from the asking prices by district: between Villaverde and Salamanca, the same budget buys three times the floor area.
Get your foreigner identification number (NIE), essential to sign and to pay the taxes linked to the purchase.
Compare each offer with recorded sales in the neighbourhood, not just with neighbouring listings.
Have the property checked at the land registry (owner, charges, mortgages) before any commitment.
Work out the full cost: price, ITP or AJD and VAT, notary, registry, loan fees.

In a market this fast, being on the ground matters. A Remoters home finder based in Madrid can select properties, visit them for you, compare prices with the neighbourhood and support you through to signing at the notary. The first conversation and the quote are free.