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
Madrid's property market continues to attract foreign buyers in early 2026, with prices rising across nearly every district and neighborhoods that were once considered affordable now catching up fast.
This guide breaks down exactly what apartments cost in Madrid right now, what you'll pay on top of the purchase price, and which areas offer the best value for first-time buyers.
We constantly update this blog post with the latest data and market developments to keep you informed.
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
- The price gap between Madrid's priciest district (Salamanca at roughly 10,000 euros per square meter) and its cheapest (Villaverde at around 2,750 euros) is nearly fourfold, meaning location matters more than almost any other factor when budgeting for an apartment in Madrid.
- Foreign buyers in Madrid typically need a 30% down payment plus 8% to 13% in closing costs, so a 400,000-euro apartment can require roughly 150,000 euros in cash upfront.
- Some of Madrid's cheapest districts like Puente de Vallecas and Ciudad Lineal are also seeing the fastest price growth (over 23% year-on-year), creating a "catch-up" dynamic that makes timing your purchase especially important.
- New-build apartments in Madrid carry a roughly 12% to 15% premium over comparable resale units, but the tax structure is different: you pay 10% VAT plus 0.75% stamp duty instead of the 6% transfer tax on resales.
- Madrid's 6% transfer tax (ITP) on resale properties is one of the lowest in Spain, saving buyers around 16,000 euros compared to regions like Catalonia on a 400,000-euro purchase.
- HOA fees in Madrid can range from 60 euros per month for basic older buildings to over 250 euros for properties with concierge service and pools, adding up to a difference of more than 2,000 euros per year.
- Property tax (IBI) in Madrid is calculated on cadastral value, not market value, so a 400,000-euro apartment might only owe 400 to 600 euros annually because the cadastral value is typically 30% to 50% of market price.
- Non-resident mortgage rates in Madrid currently range from 3% to 5%, compared to 1% to 2% for Spanish residents, meaning foreign buyers pay significantly more over the life of their loan.
How much do apartments really cost in Madrid in 2026?
What's the average and median apartment price in Madrid in 2026?
As of January 2026, the average apartment price in Madrid is approximately 400,000 euros (around 420,000 USD or 400,000 EUR) for a typical 80-square-meter unit, while the median sits slightly lower at roughly 375,000 euros (about 395,000 USD).
In terms of price per square meter, Madrid apartments average around 5,000 euros per square meter (approximately 5,250 USD or 465 EUR per square foot) for transaction-like achievable prices, though asking prices on portals run closer to 5,800 euros per square meter.
Most standard apartments in Madrid fall within a price range of 280,000 to 550,000 euros (roughly 295,000 to 580,000 USD), depending on size, condition, and location within the city.
How much is a studio apartment in Madrid in 2026?
As of January 2026, a typical studio apartment in Madrid costs around 190,000 euros (approximately 200,000 USD or 190,000 EUR), reflecting the higher price per square meter that smaller central units command.
Entry-level to mid-range studios in Madrid realistically range from 130,000 to 200,000 euros (about 137,000 to 210,000 USD), while high-end or luxury studios in prime areas like Salamanca or Chamberi can reach 280,000 to 350,000 euros (roughly 295,000 to 370,000 USD).
Studios in Madrid typically measure between 25 and 40 square meters, with 35 square meters being a common size for budgeting purposes.
How much is a one-bedroom apartment in Madrid in 2026?
As of January 2026, a typical one-bedroom apartment in Madrid costs around 280,000 euros (approximately 295,000 USD or 280,000 EUR), based on units averaging 50 to 60 square meters.
Entry-level to mid-range one-bedroom apartments in Madrid realistically range from 200,000 to 320,000 euros (about 210,000 to 335,000 USD), while high-end or luxury one-bedrooms in premium neighborhoods can reach 400,000 to 550,000 euros (roughly 420,000 to 580,000 USD).
One-bedroom apartments in Madrid typically measure between 45 and 65 square meters, with 55 square meters being the standard reference size.
How much is a two-bedroom apartment in Madrid in 2026?
As of January 2026, a typical two-bedroom apartment in Madrid costs around 400,000 euros (approximately 420,000 USD or 400,000 EUR), representing the most common family-size configuration.
Entry-level to mid-range two-bedroom apartments in Madrid realistically range from 300,000 to 450,000 euros (about 315,000 to 475,000 USD), while high-end or luxury two-bedrooms in districts like Salamanca or Chamberi can reach 600,000 to 900,000 euros (roughly 630,000 to 945,000 USD).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the property market in Madrid.
How much is a three-bedroom apartment in Madrid in 2026?
As of January 2026, a typical three-bedroom apartment in Madrid costs around 540,000 euros (approximately 570,000 USD or 540,000 EUR), with a slightly lower price per square meter than smaller units due to greater supply in outer districts.
Entry-level to mid-range three-bedroom apartments in Madrid realistically range from 400,000 to 600,000 euros (about 420,000 to 630,000 USD), while high-end or luxury three-bedrooms can reach 800,000 to 1,200,000 euros (roughly 840,000 to 1,260,000 USD) in prime areas.
Three-bedroom apartments in Madrid typically measure between 90 and 130 square meters, with 110 square meters being a standard reference size for family units.
What's the price gap between new and resale apartments in Madrid in 2026?
As of January 2026, new-build apartments in Madrid carry a premium of approximately 12% to 15% over comparable resale units in terms of price per square meter.
New-build apartments in Madrid average around 5,600 euros per square meter (approximately 5,880 USD or 520 EUR per square foot), reflecting modern energy standards and scarcity of new construction in high-demand areas.
Resale apartments in Madrid average around 5,000 euros per square meter (approximately 5,250 USD or 465 EUR per square foot), representing the bulk of available inventory and offering more negotiating room for buyers.
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Can I afford to buy in Madrid in 2026?
What's the typical total budget (all-in) to buy an apartment in Madrid in 2026?
As of January 2026, the typical all-in budget needed to buy a standard two-bedroom apartment in Madrid is around 430,000 to 450,000 euros (approximately 450,000 to 475,000 USD) for a resale property priced at 400,000 euros, including all taxes and fees.
Beyond the purchase price, your all-in budget in Madrid must include transfer tax (ITP at 6% for resales) or VAT plus stamp duty (10% plus 0.75% for new builds), notary fees, land registry fees, legal fees if you hire a lawyer, and bank valuation fees if you're getting a mortgage.
We go deeper and try to understand what costs can be avoided or minimized (and how) in our Madrid property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in Madrid.
What down payment is typical to buy in Madrid in 2026?
As of January 2026, foreign buyers in Madrid typically need a down payment of around 30% of the purchase price, which means roughly 120,000 euros (approximately 126,000 USD) for a 400,000-euro apartment, plus an additional 30,000 to 50,000 euros for closing costs.
Spanish banks generally limit loan-to-value ratios for non-residents to 60% to 70%, meaning they will finance at most 70% of the property value, while Spanish residents can often secure mortgages with just 20% down.
To secure favorable mortgage terms in Madrid, non-residents should aim for a down payment closer to 35% to 40%, which can result in better interest rates and a smoother approval process.
You can also read our latest update about mortgage and interest rates in Spain.
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.
Which neighborhoods are cheapest or priciest in Madrid in 2026?
How much does the price per m² for apartments vary by neighborhood in Madrid in 2026?
As of January 2026, the price per square meter for apartments in Madrid ranges from approximately 2,750 euros (around 2,890 USD or 255 EUR per square foot) in the most affordable districts to nearly 10,000 euros (about 10,500 USD or 930 EUR per square foot) in the most expensive areas.
The most affordable neighborhoods in Madrid include Villaverde at around 2,750 euros per square meter, Puente de Vallecas at roughly 3,200 euros, Usera at about 3,330 euros, Carabanchel at approximately 3,550 euros, and Villa de Vallecas at around 3,540 euros per square meter.
The most expensive neighborhoods in Madrid include Salamanca at roughly 10,000 euros per square meter, Chamberi at about 8,800 euros, Chamartin at approximately 7,800 euros, Retiro at around 7,700 euros, and Centro at roughly 7,400 euros per square meter.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Madrid.
What neighborhoods are best for first-time buyers on a budget in Madrid in 2026?
As of January 2026, the top three neighborhoods best suited for first-time buyers on a budget in Madrid are Villaverde, Puente de Vallecas, and Usera, all offering prices well below the city average.
In these budget-friendly neighborhoods, a typical two-bedroom apartment costs between 220,000 and 280,000 euros (approximately 230,000 to 295,000 USD), compared to 400,000 euros or more in mid-range districts.
These neighborhoods offer good Metro and Cercanias rail connections to central Madrid, local markets, and an increasingly diverse restaurant and cafe scene, making them practical choices for young professionals and families.
The main trade-off of buying in these budget-friendly neighborhoods is that building quality varies widely, so you'll need to check carefully for elevators, recent ITE (building inspection) certificates, and potential upcoming community assessments for facade or structural work.
Which neighborhoods have the fastest-rising apartment prices in Madrid in 2026?
As of January 2026, the top three neighborhoods with the fastest-rising apartment prices in Madrid are Ciudad Lineal, Puente de Vallecas, and Latina, all showing year-over-year increases above 22%.
These fast-appreciating neighborhoods in Madrid have seen estimated year-over-year price increases of 23% in Ciudad Lineal, 23% in Puente de Vallecas, and nearly 23% in Latina, according to the latest available data.
The main driver behind the rapid price growth in these neighborhoods is a combination of improved transport links, urban regeneration projects, and spillover demand from buyers priced out of traditionally expensive districts who are now targeting areas with better value.
You can also read our latest update about property price forecasts in Madrid.
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What extra costs will I pay on top of the apartment price in Madrid in 2026?
What are all the buyer closing costs when you buy an apartment in Madrid?
The estimated total buyer closing cost for a typical 400,000-euro apartment purchase in Madrid ranges from 28,000 to 32,000 euros (approximately 29,500 to 33,500 USD) for a resale property, or 48,000 to 52,000 euros (about 50,500 to 54,500 USD) for a new build.
The main categories of closing costs buyers must pay in Madrid include the transfer tax (ITP at 6%) or VAT plus stamp duty (10% plus 0.75%), notary fees, land registry fees, legal representation fees if you hire a lawyer, and bank valuation fees if you're obtaining a mortgage.
The largest expense for buyers in Madrid is typically the transfer tax (ITP) on resale properties at 6%, or the VAT on new builds at 10%, which together account for 60% to 75% of your total closing costs.
Some closing costs are negotiable or can vary between transactions in Madrid, particularly legal fees (which range from 1,000 to 3,000 euros depending on the lawyer), while taxes and registry fees are fixed by law.
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in Madrid?
Buyers in Madrid should budget approximately 7% to 8% of the purchase price for closing costs on a resale apartment, or 11% to 13% for a new-build apartment from a developer.
The realistic low-to-high percentage range that covers most standard transactions in Madrid is 7% to 13.5%, with the main variable being whether you're buying a resale home (taxed with ITP at 6%) or a new build (taxed with VAT at 10% plus stamp duty at 0.75%).
We actually cover all these costs and strategies to minimize them in our pack about the real estate 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 are the ongoing monthly and yearly costs of an apartment in Madrid in 2026?
What are typical HOA fees in Madrid right now?
HOA fees (called "gastos de comunidad" in Spain) are very common in Madrid, and a typical apartment owner pays between 100 and 180 euros per month (approximately 105 to 190 USD), depending on the building's services and amenities.
The realistic range of HOA fees in Madrid spans from around 60 euros per month (about 65 USD) for basic older buildings without concierge or elevator, up to 250 euros or more (roughly 260 USD) for buildings with doorman service, swimming pools, or extensive common areas.
What utilities should I budget monthly in Madrid right now?
The estimated total monthly utility cost for a typical apartment in Madrid is around 150 euros (approximately 160 USD), covering electricity, water, gas, and internet.
The realistic range of monthly utility costs in Madrid spans from 100 to 220 euros (about 105 to 230 USD), depending on apartment size, heating type, and seasonal usage patterns.
The specific utilities included in the typical monthly budget in Madrid are electricity (around 70 euros), water and sewer (around 25 euros), gas for heating and hot water (around 40 euros in winter, less in summer), and internet (around 30 to 40 euros).
Electricity tends to be the most expensive utility for apartment owners in Madrid, especially during summer air conditioning season and winter heating periods, and can swing significantly based on whether you're on the regulated PVPC tariff or a fixed-rate plan.
How much is property tax on apartments in Madrid?
The estimated typical annual property tax (IBI) for an apartment in Madrid ranges from 400 to 800 euros (approximately 420 to 840 USD), depending on the property's cadastral value.
Property tax in Madrid is calculated by applying the city's IBI rate of 0.414% to the cadastral value (valor catastral) of your property, which is typically 30% to 50% of market value.
The realistic range of annual property tax in Madrid spans from roughly 300 euros for smaller apartments with low cadastral values to over 1,500 euros (about 1,575 USD) for larger or more valuable properties in premium districts.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Madrid.
What's the yearly building maintenance cost in Madrid?
The estimated typical yearly building maintenance reserve for apartment owners in Madrid is around 500 to 1,500 euros (approximately 525 to 1,575 USD), beyond regular HOA fees, to cover unexpected repairs or special assessments.
The realistic range of yearly maintenance costs depends heavily on building age and condition, with newer buildings requiring less (around 300 to 600 euros annually) and older pre-1980 buildings potentially facing 1,000 to 2,500 euros (about 1,050 to 2,625 USD) for deferred maintenance.
Expenses typically included in building maintenance costs in Madrid are elevator servicing, facade repairs, roof maintenance, common area upkeep, and mandatory building inspections (ITE) that can trigger significant remediation work.
In Madrid, routine building maintenance is generally included in your HOA fees, while extraordinary works like facade renovation or elevator replacement appear as special assessments (derramas) that can range from a few hundred to several thousand euros per owner.
How much does home insurance cost in Madrid?
The estimated typical annual home insurance cost for an apartment in Madrid is around 250 euros (approximately 265 USD), covering both contents and basic building coverage for a standard unit.
The realistic range of annual home insurance costs in Madrid spans from around 150 euros (about 160 USD) for basic coverage on a small apartment to 400 euros or more (roughly 420 USD) for comprehensive policies on larger or higher-value properties.
Home insurance is not legally mandatory for apartment owners in Madrid, but it's practically essential if you have a mortgage (banks require it), and most building communities expect owners to carry coverage for their individual units.
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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 | Why it's authoritative | How we used it |
|---|---|---|
| idealista | Spain's largest property portal with a long-running, transparent monthly asking-price index. | We used it to anchor current asking prices per square meter for Madrid and to compare districts. We treated it as the "what sellers ask" side of the market. |
| Tinsa | One of Spain's most respected valuation firms, widely cited by institutions and media. | We used it as a valuation-based reality check versus asking prices. We also used it to approximate transaction-like levels when triangulating. |
| Colegio de Registradores | Official body that produces transaction and registry-based housing market statistics. | We used it for new versus resale price gaps and foreign-buyer context. We also used it as a sanity check on price dynamics. |
| Ayuntamiento de Madrid | The city's official statistics portal with curated datasets used for public reporting. | We used it to back up district-level comparisons and ensure neighborhood discussion matches official geography. |
| MITMA | Central government's hub for official housing datasets and methodology notes. | We used it to cross-check levels and trends and to keep our story consistent with official measurement conventions. |
| Banco de Espana | Spain's central bank and top domestic authority on financial stability and mortgage risk. | We used it to frame how banks think about LTV and mortgage risk. We translated that into practical down-payment expectations. |
| Agencia Tributaria | Spain's national tax agency with authoritative guidance on VAT and ITP rules. | We used it to define new-build versus resale tax treatment. We also used stated VAT rates for all-in cost calculations. |
| BOE | Official gazette and primary legal source for tax rates and fee schedules. | We used it to pin down AJD rates and notary fee structures. We relied on legal text to avoid errors. |
| Comunidad de Madrid | Regional government's taxpayer guidance for the exact tax foreign buyers pay on resales. | We used it to confirm ITP applies on resales and to align definitions and taxpayer steps. |
| Agencia Tributaria Madrid | Official municipal tax portal showing Madrid's current IBI property tax rate. | We used it to compute annual property tax from cadastral value. We also explained the formula buyers can apply. |
| Canal de Isabel II | Madrid's public water utility with official tariff schedules for 2026. | We used it to estimate water and sewer costs using typical household consumption examples. |
| Eurostat | EU's official statistics authority, ideal for cross-country energy price comparisons. | We used it to anchor Spain-wide household energy price levels and translate them into Madrid budgeting ranges. |
| OCU | Spain's major consumer organization publishing practical bill calculations. | We used it to convert energy prices into realistic monthly electricity bills for typical homes. |
| UNESPA | Spanish insurance industry association publishing aggregate market statistics. | We used it to show how common home claims are and why insurance is standard in Spain. |
| ICEA | Insurance sector's main statistics and research service in Spain. | We used it to corroborate that home insurance is a large, mature product category in Spain. |
| Fotocasa | Major Spanish property portal with complementary price index data. | We used it as a secondary source to validate idealista price levels and listing distributions. |
| INE | Spain's national statistics institute with official Housing Price Index data. | We used it to verify price trends and growth rates across property types. |
| Lawants | Legal advisory firm specializing in Spanish property transactions with detailed cost guides. | We used it to validate closing cost percentages and regional tax variations. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.