One million is no longer enough in Madrid's prime market: today you can buy three times less square meters of housing than in 2014.

PUBLISHED ON

Enero 07, 2026

CATEGORY

Real Estate

The luxury residential market in Madrid has entered a new phase of maturity and structural tension. In just a decade, accessibility to the prime segment has plummeted historically. With one million euros, a buyer can now purchase around 110 m², compared to the 240–330 m² that could be bought in 2014 in the capital's five most exclusive postcodes: Recoletos, Castellana and Jerónimos, Almagro-Trafalgar-Justicia, and Ibiza-Niño Jesús. This is reflected in the report “A decade of the prime real estate market in Madrid: evolution and trends (2014–2025)”, presented by Diza. It is particularly surprising that with one million euros, a client can only purchase an 80 m² apartment in Recoletos.

The study, led by professors Fernando Pinto Hernández and María Luisa Medrano García (Rey Juan Carlos University), quantifies a cumulative revaluation of 95.26% of the price per square meter in the Community of Madrid, the municipalities, and the postal codes of the Spanish capital over the last decade. The authors emphasize that this surge is not due to speculative factors, but rather to a structural imbalance between extremely limited supply in prime locations and growing, solvent international demand.

The pandemic, a turning point

Far from acting as a brake, the pandemic served as a catalyst for the cycle. In 2020, the adjustment in the prime segment was marginal (-1.5%), and from 2021 onwards, prices accelerated sharply: post-COVID growth reached 54.33%, well above the figure recorded between 2014 and 2019.

Among the factors explaining this change in pattern are the rise of international teleworking, the mobility of large European and Latin American fortunes, and the search for refurbished housing with premium standards in high-quality urban environments.

During the presentation, Fernando Pinto defined the current moment as “a decade of profound transformation that has consolidated Madrid among the high-end residential hubs of Europe.”

A more diverse and, in some neighborhoods, younger buyer

Although the median age of prime buyers rose from 43 to 47 in the post-COVID period, the report detects an effective rejuvenation in enclaves such as Almagro, Justicia, Ibiza, and the Niño Jesús area, where the weight of profiles aged 30 to 45 is growing: expatriates, technology professionals, and global executives attracted by the urban dynamism and the quality of the refurbished product.

In the more traditional districts (Recoletos, Castellana, and Jerónimos), high-net-worth buyers, both domestic and international, continue to predominate.

The research confirms the expansion of Madrid's prime market into the metropolitan area. Municipalities such as Alcobendas (La Moraleja), Pozuelo de Alarcón, Majadahonda, Tres Cantos, and Boadilla del Monte have seen very sharp increases in value, driven by demand for single-family homes, privacy, and the presence of international schools. In some cases, such as Boadilla, post-pandemic growth has multiplied the previous trend several times over.

Internal differences within the ‘prime’ area itself

When analyzing zip codes, the report identifies divergent dynamics that reveal the existence of autonomous micro-markets. While Recoletos (28001), Castellana (28006), and Jerónimos (28014) maintain the highest prices and minimal turnover, other codes such as Almagro-Trafalgar-Justicia (28010) and Ibiza-Niño Jesús (28009) show the highest relative growth rates after the pandemic.

Unlike the behavior of the Community of Madrid as a whole, in these premium codes the highest growth occurred before the pandemic, while the post-COVID period is characterized by more selective demand that rewards asset quality and exact location.

Although Spanish buyers continue to be in the majority, DIZA Consultores spokespersons pointed out that international buyers are consistently gaining ground. Nationalities such as Italy, the United States, Mexico, and other Latin American countries stand out.

“Madrid welcomes profiles from all over the world. Newcomers, whether Spanish or foreign, land in prime enclaves, which increases pressure on a very limited stock,” explained María Luisa Medrano.

Madrid, a global prime market with potential

The report concludes that the evolution of the last decade has structural origins: a shortage of supply, a steady influx of solvent international buyers, and Madrid's competitive position as a safe and efficient residential destination.

According to Pinto, future growth potential will depend on the supply of refurbished properties that may come onto the market and on maintaining the urban appeal of the capital.