The neighbourhoods of Recoletos and Justicia are home to some of the most expensive streets in Madrid to buy property, according to Engel & Völkers.
The city of Madrid is becoming a real estate oasis in Spain and in Europe, where prices are remaining largely stable in the residential market and transactions are returning to growth after the coronavirus crisis. This is according to the latest market report released by the luxury real estate company Engel & Völkers. The German firm's forecasts point to "a 20% increase in sales figures and a stabilisation of prices, although the pace of recovery in Madrid will be asymmetrical by area and type of property". So, according to the report, what are the most expensive streets in Madrid in 2021? Let's find out.
So far in 2021, there has been an increase in the number of transactions and an increase in demand from luxury property seekers in the city of Madrid. "Sales of second-hand homes in Madrid have resumed activity faster than expected and we expect transactions to continue to grow and prices to be maintained," explains Sonia Catalán, sales director at Engel & Völkers Madrid.
This demand for luxury housing is concentrated in traditional Madrid neighbourhoods close to the city centre, such as Goya and Recoletos (in the Salamanca district), Almagro (Chamberí), Justicia (Centro) and El Viso, Nueva España or Hispanoamérica, in Chamartín.
"The buyer profile is very varied, although the majority are families buying main residences. The months of confinement due to the coronavirus crisis have awakened the desire to move house for many clients who are buying to replace their current home. Most buyers are looking for larger homes where they can easily work from home and with access to the outside world. In addition, in 2021 there will be an increase in purchases by investors who see the current market as a business opportunity", highlights the report by the German luxury real estate company.
Among the most sought-after streets in Madrid, and in turn the most expensive to buy property are Salustiano Olózaga, in Recoletos (Salamanca district), with average prices of 12,000 euros/m2, or Madrid's well-known luxury shopping street, Calle Serrano (Salamanca district) and General Castaños (Justicia district) where prices reach 10,000 euros/m2. In the following neighbourhoods, such as Almagro (Chamberí), Jerónimos (Retiro) and El Viso (Chamartín), the price of high-end properties also exceeds 8,000 euros/m2.
In addition to these large properties, what has been most noticeable is an increase in demand for properties with terraces, semi-detached houses with gardens and detached houses, which has boosted interest in other areas of Chamartín such as Hispanoamérica and Nueva España where houses are more common than apartments. This is also the case in Ciudad Lineal and Hortaleza, where the focus has been on the more premium areas such as Conde Orgaz-Piovra and Arturo Soria.
Outside the centre of Madrid, areas in the north of the capital have the most sought-after characteristics during the pandemic, such as Mirasierra, Montecarmelo, Puerta de Hierro, Fuentelarreina and Tres Olivos, with prices ranging from 4,000 to 6,000 euros/m2. Outside the city of Madrid, the prestigious area of La Moraleja remains at the same level as the capital with the highest prices in the province, just lik in the areas of El Soto or El Encinar where prices also reach 8,000 euros/m2.
The municipalities of Pozuelo de Alarcón, Majadahonda, Boadilla del Monte and Las Rozas, Villanueva de la Cañada, Villafranca del Castillo, Villaviciosa de Odón have also been in the spotlight of Madrid clients. According to Engel & Völkers, prices have varied from one municipality to another, with increases in Boadilla (7.4%) but falls in Pozuelo (-2.8%).
"The increase in demand towards these peripheral areas of Madrid see many buyers in search of villas or flats with terraces and ground floor flats with gardens. These are a consequence of teleworking and the priority of families to achieve a higher quality of life at cheaper prices than in the big city", points out Bruno Cotta, sales director of Engel & Völkers in the outskirts of Madrid.