Record-breaking figures in the capital’s real estate market
In October 2025, the average price per square meter of housing in Madrid reached €5,705. This set a new all-time high for the city, surpassing even the figures recorded in August. Over the year, prices have risen by 18.1%, and by 0.5% compared to September. Despite a slight dip in the third quarter, the overall trend remains upward.
Madrid is significantly ahead of the national average. Across Spain, housing costs €2,555 per square meter—more than twice as low as in the capital. Madrid’s growth rate is also higher: nationwide, prices have increased by 15.7% over the year.
The city’s most expensive and affordable districts
Within Madrid, there is a significant disparity in property prices between neighborhoods. The most expensive remains Salamanca, where a square meter is priced at nearly €9,800. It is followed by Chamberí and Retiro, at €8,447 and €7,729 respectively. These areas have seen significant annual growth, especially in Retiro, where prices have surged by 27%.
In premium areas like Chamartín and Centro, prices also exceed €7,000 per square meter. These neighborhoods remain the most prestigious and sought-after among buyers.
On the other end of the spectrum are the more affordable districts. Villaverde remains the most budget-friendly area, although even here prices have risen by a quarter over the year, reaching €2,709 per square meter. In Puente de Vallecas, Usera, Villa de Vallecas, and Carabanchel, property prices range from €3,000 to €3,500, but the pace of growth is equally impressive—between 18% and 25%.
Market trends and outlook
Experts note that demand for housing in Madrid remains strong despite record prices. Apartments are rising in value particularly fast in neighborhoods that were previously considered less prestigious. For example, Latina and Moratalaz have shown a growth of about 26% over the year, indicating that buyers’ interest is shifting toward new locations.
Premium districts such as Chamartín and Chamberí continue to lead in terms of price, with values barely decreasing. At the same time, the gap between upscale and affordable neighborhoods is widening, reflecting a broader trend of market stratification.
Overall, Spain’s capital is showing a steady increase in real estate prices, outpacing national averages. Analysts predict that in the coming months demand will remain high, and the price per square meter may continue to reach new highs.
