Prime property prices in Madrid increased by 8.1% in 2018 and are now 46% above the low point in 2012, according to a report by Knight Frank.
Madrid has evolved into a key business centre with strong finance, tech, logistics and communications sectors and leading the fight back in the real estate market, the latest report suggests. The firm also points out that the volume of luxury new homes sold increased by 50% between 2017/2018 and 2018/2019, with almost all new units launched in the last two years now under offer.
Overall some 85,169 residential units were sold across Madrid in 2018, up 61% since 2014, while 35% of all Knight Frank prime buyers in Madrid last year were from overseas.
Carlos Zamora, head of Knight Frank’s residential team in Madrid, explained that the recovery of the prime residential market gathered pace at the end of 2016 and since early 2017 Knight Frank’s Madrid Prime Residential Index has outperformed its 43-city average with luxury prices accelerating 8.1% in 2018.
“In Madrid, the upturn in the commercial sector was a precursor to the residential market’s recovery. According to the Ministry of Economy, six out of every €10 invested in Spain is invested in the capital,” he said.