Madrid, among the cities with the highest growth in prime housing prices.

PUBLISHED ON

Febrero 20, 2025

CATEGORY

Real Estate

Madrid has consolidated its position as one of the European cities with the highest growth in prime housing prices, reaching an annual increase of 5.5%, according to Knight Frank's Prime Global Cities Index for the fourth quarter of 2024. The figure places the Spanish capital above the global average of 3.2%, the best record since the first quarter of the year.
The report, which analyzes the evolution of the market in 44 cities around the world, highlights the resilience of prime real estate in a context of global macroeconomic uncertainty.

In Europe, Madrid ranks among the top cities, alongside Lisbon (5.3%) and Dublin (3.9%), reflecting a sustained positive trend despite economic challenges. “The market performance in Madrid reflects not only the city's continued attractiveness to domestic and international investors, but also the stability of the prime real estate market in Spain,” says Liam Bailey, Global Head of Research at the consultancy.

Madrid stands out for the growth of its prime real estate market and for its consolidation as a tourist, cultural and economic engine. In addition, it has been designated European Capital of Gastronomy in 2024, with 32 Michelin-starred restaurants, which reinforces its attractiveness for high purchasing power tourism.

This favorable environment is reflected in the evolution of the profile of the international buyer. “Madrid has established itself as a capital city on a par with major European cities and many of the world's leading metropolises. Here, buyers are not only acquiring properties, but also investing in a lifestyle. The city's excellent momentum has attracted an increasingly sophisticated investor profile that prioritizes volume and space distribution over square meters and values aspects such as security, strategic position in Europe, quality of life, cultural offerings and economic dynamism. All of this supports sustained growth in this market segment, which is expected to continue for at least the next five years, driven by a more favorable economic cycle compared to other regions in Europe,” explains Ana White, director of Premium Properties at Knight Frank.

Madrid, with its combination of economic stability, diverse cultural offerings and a constantly evolving real estate market, is shaping up to be one of the most attractive destinations for investment in luxury residential assets in Europe in the coming years.