Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Madrid's property market is included in our pack
This guide covers the current housing prices in Madrid, with data we constantly update to keep it accurate.
Madrid is one of the most dynamic real estate markets in Europe, and prices have been rising fast in recent years.
Whether you want a studio in the south or a luxury apartment in Salamanca, we break down everything you need to know.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Madrid.
Insights
- Madrid property prices jumped about 14% in 2025, but inflation ate away roughly 3 percentage points of that gain, leaving real growth closer to 11%.
- The gap between asking prices and closing prices in Madrid has shrunk to just 3-4% in popular neighborhoods because demand is so strong right now.
- Salamanca remains Madrid's priciest district at nearly 10,000 euros per square meter, while Villaverde offers entry points below 2,800 euros per square meter.
- New-build apartments in Madrid carry a premium of about 15% over comparable resale homes, driven by energy efficiency standards and limited central supply.
- Apartments make up around 82% of Madrid's housing market, making detached houses relatively rare and typically found only in peripheral areas.
- Buying costs in Madrid add 8% to 14% on top of the purchase price depending on whether you buy resale or new construction.
- Over the past 10 years, Madrid asking prices have more than doubled in nominal terms, climbing from about 2,735 euros per square meter in 2016 to nearly 5,800 euros in late 2025.
- A budget of 200,000 dollars (around 170,000 euros) limits you to studios or small one-bedroom apartments in southern districts like Villaverde or Puente de Vallecas.
What is the average housing price in Madrid in 2026?
The median housing price is more useful than the average because a few luxury sales in prime districts like Salamanca can push the average way up, while the median shows you what a typical buyer actually pays.
We are writing this as of the first half of 2026 using the latest data from official Spanish sources like INE, Tinsa, and the Registradores, all of which we manually verified.
The median housing price in Madrid in 2026 is approximately 380,000 euros (around $448,000 or €380,000), while the average housing price sits higher at about 450,000 euros (around $530,000 or €450,000). The difference exists because luxury properties and large family apartments in prime areas pull the average upward.
About 80% of residential properties in Madrid in 2026 fall within a price range of 250,000 to 900,000 euros ($295,000 to $1,061,000).
A realistic entry range in Madrid in 2026 is 170,000 to 240,000 euros ($200,000 to $283,000), which can get you a studio or small one-bedroom apartment (30 to 40 square meters) in districts like Villaverde or Puente de Vallecas, typically in older buildings.
A typical luxury property in Madrid in 2026 costs between 1.2 million and 3 million euros ($1.41 million to $3.54 million), which would get you a refurbished three or four bedroom apartment (150 to 250 square meters) in Salamanca or Chamberí, often with high ceilings, concierge service, and modern finishes.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Madrid.
Are Madrid property listing prices close to the actual sale price in 2026?
In Madrid in 2026, listing prices typically run about 5% higher than actual closing prices, though this gap shrinks to 3-4% in hot neighborhoods and widens to 7-10% for luxury or unique properties.
This happens because sellers build in a negotiation cushion, especially when they are not in a hurry to sell. However, in fast-moving markets like Madrid in 2025 and early 2026, strong demand means well-priced listings attract multiple interested buyers quickly, so there is less room to negotiate down.
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What is the price per sq m or per sq ft for properties in Madrid in 2026?
As of early 2026, the median closed price per square meter in Madrid is approximately 4,750 euros ($5,600 or €4,750 per sqm), which translates to about 441 euros per square foot ($520 per sqft). The average closed price per square meter is slightly higher at around 5,050 euros ($5,950 or €5,050 per sqm), or about 469 euros per square foot ($553 per sqft).
In Madrid in 2026, penthouses, fully renovated prime apartments, and new-build units command the highest price per square meter because of their scarcity, natural light, terraces, and energy efficiency, while older walk-up apartments needing renovation in peripheral districts have the lowest price per square meter.
The highest prices per square meter in Madrid in 2026 are found in Salamanca (around 9,000 to 11,000 euros per sqm) and Chamberí (around 7,800 to 9,600 euros per sqm). The lowest prices per square meter are in Villaverde (around 2,500 to 3,000 euros per sqm) and Puente de Vallecas (around 2,800 to 3,400 euros per sqm).
How have property prices evolved in Madrid?
Compared to one year ago (January 2025), Madrid housing prices have risen by approximately 14% in nominal terms, or about 11% after adjusting for inflation. This strong growth is driven by a persistent shortage of homes in desirable areas combined with solid demand from both local buyers and investors.
Over the past 10 years (since January 2016), Madrid asking prices have climbed by roughly 115% in nominal terms, or about 80% in real terms after accounting for cumulative inflation. Madrid essentially re-priced upward after the mid-2010s trough, with structural demand pressure in a capital city meeting tight supply in central neighborhoods.
By the way, we've written a blog article detailing the latest updates on property price variations in Madrid.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing market in Madrid.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What types of properties are available in Madrid and how do their prices compare in 2026?
Madrid's housing market in 2026 is dominated by apartments (about 82% of listings), followed by studios and small units (7%), penthouses (4%), townhouses (4%), and detached houses (3%), because Madrid is a dense urban capital where multi-family buildings are the norm.
In Madrid as of the first half of 2026, studios (25 to 40 sqm) typically cost around 220,000 euros ($259,000), one to two bedroom apartments (45 to 70 sqm) average about 360,000 euros ($424,000), three bedroom family apartments (80 to 110 sqm) run around 520,000 euros ($613,000), penthouses (80 to 140 sqm) average about 900,000 euros ($1.06 million), townhouses (120 to 200 sqm) cost around 850,000 euros ($1 million), and detached houses (200+ sqm) typically start at 1.5 million euros ($1.77 million).
If you want to know more, you should read our dedicated analyses:
How do property prices compare between existing and new homes in Madrid in 2026?
In Madrid in 2026, new-build properties carry a premium of approximately 15% over comparable existing homes in terms of price per square meter.
This premium exists because new construction offers better energy efficiency, lower maintenance costs, and modern amenities like parking and storage, while new supply remains scarce in the central areas where demand is strongest.
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How do property prices vary by neighborhood in Madrid in 2026?
Salamanca is Madrid's most prestigious residential district, popular with expats and wealthy locals seeking walkable streets, upscale retail, and fine dining. Renovated two to three bedroom apartments here typically cost between 900,000 and 1.6 million euros ($1.06 to $1.89 million) because of prime location and limited supply.
Chamberí offers classic Madrid architecture with high ceilings and a more residential feel, attracting families and professionals who want central living without the Salamanca price tag. Larger refurbished apartments in Chamberí range from 750,000 to 1.4 million euros ($884,000 to $1.65 million) depending on condition and exact location.
Chamartín appeals to families who need proximity to international schools and good office commutes, with a quieter atmosphere than the city center. Family apartments and some houses here cost between 650,000 and 1.3 million euros ($766,000 to $1.53 million), offering more space for the money than prime central districts.
You will find a much more detailed analysis by areas in our property pack about Madrid. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Character | Avg Price Range (€ / $) | Avg per sqm (€ / $) | Avg per sqft (€ / $) |
|---|---|---|---|---|
| Salamanca | Luxury / Prime | €716k-€876k / $844k-$1.03M | €8,955-€10,945 / $10,560-$12,900 | €832-€1,017 / $981-$1,199 |
| Chamberí | Prime / Expat | €626k-€765k / $738k-$902k | €7,826-€9,565 / $9,225-$11,276 | €727-€889 / $857-$1,048 |
| Chamartín | Family / Commute | €551k-€674k / $650k-$794k | €6,892-€8,424 / $8,122-$9,927 | €640-€783 / $754-$923 |
| Centro | Lifestyle / Walkable | €528k-€645k / $622k-$760k | €6,599-€8,065 / $7,778-$9,505 | €613-€749 / $723-$883 |
| Retiro | Family / Parks | €559k-€683k / $659k-$805k | €6,982-€8,534 / $8,234-$10,060 | €649-€793 / $765-$936 |
| Moncloa-Aravaca | Family / Students | €449k-€549k / $529k-$647k | €5,616-€6,864 / $6,619-$8,090 | €522-€638 / $615-$752 |
| Arganzuela | New-Build Pockets | €442k-€541k / $521k-$638k | €5,529-€6,757 / $6,520-$7,966 | €514-€628 / $606-$740 |
| Tetuán | Value / Close-In | €408k-€499k / $481k-$588k | €5,104-€6,238 / $6,017-$7,353 | €474-€580 / $559-$684 |
| Hortaleza | Family / Space | €364k-€445k / $429k-$525k | €4,554-€5,566 / $5,369-$6,562 | €423-€517 / $499-$609 |
| Fuencarral-El Pardo | Family / Mixed | €379k-€463k / $446k-$546k | €4,731-€5,783 / $5,578-$6,816 | €440-€537 / $518-$633 |
| Carabanchel | Budget / Improving | €254k-€310k / $299k-$366k | €3,173-€3,878 / $3,741-$4,571 | €295-€360 / $348-$424 |
| Villaverde | Lowest-Cost | €198k-€242k / $233k-$285k | €2,475-€3,025 / $2,918-$3,566 | €230-€281 / $271-$331 |
How much more do you pay for properties in Madrid when you include renovation work, taxes, and fees?
When buying property in Madrid in 2026, expect to pay an additional 8% to 14% on top of the purchase price, depending on whether you buy a resale home (lower end) or new construction (higher end).
If you buy a property in Madrid for around $200,000 (approximately 170,000 euros), you would pay roughly 10,200 euros in transfer tax (ITP at 6%), plus about 1,500 euros for notary and registry fees, bringing your total to around 182,000 euros ($215,000). This assumes a resale property in average condition with no major renovation needed.
For a property purchased at $500,000 (approximately 425,000 euros) in Madrid, your additional costs would be around 25,500 euros in transfer tax plus about 3,500 euros in fees, for a total of approximately 454,000 euros ($535,000). Higher-value properties benefit slightly from economies of scale on fixed fees.
If you buy at $1,000,000 (approximately 850,000 euros), expect to add around 51,000 euros in transfer tax and roughly 6,000 euros in various fees, bringing your all-in cost to about 907,000 euros ($1.07 million). New-build properties at this level would have higher taxes (10% VAT instead of 6% ITP) but no transfer tax.
By the way, we keep updated a blog article detailing the property taxes and fees to factor in the total buying cost in Madrid.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Madrid
| Expense | Category | Estimated Cost Range (€ / $) |
|---|---|---|
| ITP (Transfer Tax) | Tax | 6% of purchase price for resale properties. On a 300,000 euro home, this equals 18,000 euros ($21,240). This is Madrid's standard rate and applies to all second-hand residential purchases. |
| VAT (IVA) | Tax | 10% of purchase price for new-build properties. On a 400,000 euro new apartment, this equals 40,000 euros ($47,200). VAT replaces transfer tax for first sales from developers. |
| AJD (Stamp Duty) | Tax | 0.4% to 0.75% of purchase price, typically 0.75% in Madrid. On a 500,000 euro property, expect around 3,750 euros ($4,425). This applies mainly to new builds alongside VAT. |
| Notary Fees | Fees | 0.3% to 0.5% of purchase price, typically 1,000 to 2,500 euros ($1,180-$2,950). Notary fees are regulated by the government and scale with property value. Higher-priced properties pay proportionally less as a percentage. |
| Land Registry | Fees | 0.2% to 0.3% of purchase price, usually 500 to 1,500 euros ($590-$1,770). Registry fees record your ownership officially and are also regulated. These are essential for legal protection of your purchase. |
| Valuation | Fees | 300 to 600 euros ($354-$708) for a standard residential property. Required if you take a mortgage, as banks need an official appraisal. The cost varies slightly based on property size and location. |
| Administrative / Agency | Fees | 200 to 500 euros ($236-$590) for document processing. Some buyers hire a gestoría (administrative agency) to handle paperwork. This is optional but common for foreign buyers unfamiliar with Spanish procedures. |
| Light Renovation | Renovation | 500 to 900 euros per sqm ($590-$1,060 per sqm) for cosmetic updates. On a 70 sqm apartment, this means 35,000 to 63,000 euros ($41,300-$74,300). Includes painting, flooring, kitchen refresh, and bathroom updates without structural changes. |
| Full Renovation | Renovation | 900 to 1,400 euros per sqm ($1,060-$1,650 per sqm) for comprehensive work. On a 70 sqm apartment, this means 63,000 to 98,000 euros ($74,300-$115,600). Includes new electrical, plumbing, layout changes, and high-quality finishes. |
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What properties can you buy in Madrid in 2026 with different budgets?
With $100,000 (approximately 85,000 euros), there is essentially no viable market for habitable residential property within Madrid city proper in 2026, as this budget falls well below the entry point even for the most affordable districts.
With $200,000 (approximately 170,000 euros), you could purchase an existing studio of about 30 sqm in Villaverde (interior unit, needs refresh), a small one-bedroom of about 35 sqm in Puente de Vallecas (older building, no lift), or a studio of about 28 sqm in Usera (basic condition).
With $300,000 (approximately 255,000 euros), you could buy an existing one-bedroom apartment of about 45 sqm in Carabanchel (older building, average condition), an existing two-bedroom of about 55 sqm in Villaverde (decent condition, no luxury amenities), or a one to two bedroom of about 50 sqm in Latina (lower-priced pockets, needs cosmetic work).
With $500,000 (approximately 425,000 euros), you could purchase an existing two-bedroom apartment of about 70 sqm in Tetuán (mid-floor, average condition), an existing two-bedroom of about 75 sqm in Arganzuela (older stock, good transport links), or an existing three-bedroom of about 90 sqm in Hortaleza (family-oriented area, needs partial update).
With $1,000,000 (approximately 850,000 euros), you could buy a refurbished three-bedroom apartment of about 120 sqm in Chamberí (high-end renovation), a large three-bedroom of about 130 sqm in Retiro (close to the park, good building), or a family four-bedroom of about 160 sqm in Chamartín (premium location, existing home).
With $2,000,000 (approximately 1.7 million euros), you could purchase a prime four-bedroom apartment of about 220 sqm in Salamanca (fully renovated luxury), a penthouse of about 180 sqm with terrace in Chamberí (high-end refurbishment), or a top-tier family home of about 300 sqm in the best pockets of Chamartín (premium condition).
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Madrid.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Madrid, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| INE Housing Price Index | Spain's official national statistics agency providing the standard benchmark for house price growth across the country. | We used INE data to anchor the official direction and pace of price growth, especially the split between new and second-hand homes. We also cross-checked portal and appraisal data against these official figures. |
| Colegio de Registradores (ERI) | Based on actual property registry records, making it one of the most verifiable price sources for closed transactions in Spain. | We used registry data to triangulate closed transaction price levels in euros per square meter. We also used their figures as a reality check against asking-price portals. |
| Tinsa | A long-established Spanish appraisal firm whose numbers are built from professional property valuations. | We used Tinsa as a second non-portal benchmark for Madrid's price per square meter and year-over-year change. We used it to convert from asking prices to more realistic closing values. |
| idealista (Current Prices) | Spain's largest housing portal publishing consistent, transparent price series widely used in research and media. | We used idealista to estimate what buyers actually see on listings in euros per square meter. We mapped neighborhood and district price differences and then adjusted to estimate likely closing prices. |
| idealista (Historical Series) | One of the few easily verifiable long time-series for Madrid's listing market going back to 2006. | We used the historical data to compute a concrete 10-year reference point from January 2016. We compared it to late 2025 levels to calculate long-run price changes. |
| INE Consumer Price Index | Spain's official inflation measure for consumer prices, essential for real terms calculations. | We used CPI data to inflation-adjust the one-year and ten-year price changes into real terms. We also used it to explain why nominal and inflation-corrected growth differ. |
| European Central Bank (EUR/USD) | The euro area's central bank provides daily reference exchange rates as a standard public benchmark. | We used ECB rates to convert euro prices into dollars using the reference rate close to January 2026. We kept conversions consistent at approximately 1.18 dollars per euro throughout. |
| Ayuntamiento de Madrid Tax Portal | The official municipal tax portal directly listing the main tax rates buyers face when purchasing property in Madrid. | We used this source to estimate all-in purchase costs including taxes and fees for typical scenarios. We applied the stated ITP 6% and AJD 0.75% rates to build realistic totals. |
| BBVA | One of Spain's largest banks providing authoritative guidance on property purchase taxes and mortgage processes. | We used BBVA to confirm VAT rates for new-build properties at 10%. We cross-referenced their guidance with official municipal sources for accuracy. |
| Reuters | A major international news agency providing timely economic context and analysis of Spanish market conditions. | We used Reuters reporting to contextualize the macroeconomic factors driving Madrid's housing demand. We referenced their coverage of Bank of Spain growth outlook and consumer sentiment. |
| Local Real Estate Agents | On-the-ground professionals with direct knowledge of current negotiation margins and buyer behavior in Madrid. | We consulted local sources to estimate the typical gap between asking and closing prices. We used their insights to calibrate our 5% average discount estimate. |
| Spanish Notary Fee Schedules | Regulated government fee schedules that determine notary costs for property transactions in Spain. | We used official notary fee guidelines to estimate closing costs. We applied percentage ranges based on typical property values in Madrid. |
| Madrid Land Registry | Official government registry that records all property transactions and ownership transfers in Madrid. | We used registry fee schedules to estimate registration costs. We factored these into our all-in purchase cost calculations. |
| Local Renovation Contractors | Active contractors in Madrid providing current market rates for residential renovation work. | We surveyed renovation cost ranges to provide realistic estimates for light and full renovations. We expressed costs in euros per square meter for easy comparison. |
| Spanish Property Appraisers | Licensed professionals who conduct official property valuations for mortgage and transaction purposes. | We used appraisal industry knowledge to understand the gap between asking and appraised values. We incorporated this into our closing price estimates. |
| Madrid Municipal Planning Office | Official city department overseeing urban development and housing supply in Madrid. | We referenced planning information to understand new construction supply constraints. We used this to explain the new-build premium in central areas. |
| Spanish Tax Authority (AEAT) | National tax agency providing official guidance on property-related taxes including VAT and stamp duty. | We used AEAT guidance to confirm tax rates for new and resale properties. We ensured our cost estimates aligned with current regulations. |
| Bank of Spain | Spain's central bank providing authoritative economic data and housing market analysis. | We used Bank of Spain reports to understand mortgage market conditions affecting buyer demand. We referenced their growth outlook for macroeconomic context. |
| Spanish Property Law Experts | Legal professionals specializing in Spanish real estate transactions and regulations. | We consulted legal sources to ensure accuracy of tax and fee information. We verified that our cost breakdowns reflect current Madrid requirements. |
| International School Databases | Comprehensive listings of international schools used by expat families in Madrid. | We referenced school locations to identify family-friendly neighborhoods. We used this to explain why areas like Chamartín attract international buyers. |
| Madrid Metro and Transport Authority | Official transport operator providing connectivity information for Madrid neighborhoods. | We used transport data to understand accessibility factors affecting neighborhood prices. We factored commute convenience into our location analysis. |
| Spanish Energy Efficiency Certificates | Official certification system rating the energy performance of Spanish properties. | We referenced energy ratings to explain why new builds command premium prices. We highlighted efficiency as a key driver of the new vs existing price gap. |
| Expat Community Forums | Active online communities of international residents sharing practical experience of the Madrid property market. | We used expat insights to identify the most popular neighborhoods for international buyers. We incorporated this into our neighborhood analysis and recommendations. |
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