Madrid and Barcelona are solidifying their positions in the competitive global luxury property market. According to the Savills World Cities Prime Residential Index 2025, both Spanish cities rank among the European cities with the strongest growth in prime property values during the first half of the year.
Madrid has seen prices rise by 0.9%, placing it fifth among European cities for prime market growth, while Barcelona has recorded a 0.5% increase, securing seventh place. These gains stand in contrast to more traditional markets such as London and Paris, which have experienced declines of -1.6% and -0.7% respectively.
Attractive prices and promising prospects
Despite these upward trends, both cities remain relatively accessible within the European prime market. The average price per square metre in Madrid currently sits at €11,100, with Barcelona at €9,300. Savills notes that these competitive prices, combined with the high quality of life and international appeal of both cities, are expected to continue driving demand among discerning buyers.
Looking ahead to the latter half of 2025, Savills anticipates further price growth of between 2% and 3.9% in Madrid and Barcelona, outperforming the projected global average for prime property, which stands at 1.7%.
A measured but positive global trend
The report, analysing prime property prices in 30 major cities worldwide, shows that 60% experienced growth during the first half of 2025. However, the overall trend indicates a moderation in growth compared with previous years.
Cities offering comparatively more affordable prime properties have recorded some of the strongest gains, including Berlin (+7.2%), Amsterdam (+3.6%) and Lisbon (+2.4%). Meanwhile, markets such as Dubai, Tokyo and Seoul continue to lead globally, with price increases exceeding 5%.
Driving factors: scarcity, lifestyle and investment appeal
Savills highlights that cities combining international allure, political stability and a limited supply of luxury property are set to remain at the forefront of the market. In this context, Madrid and Barcelona continue to strengthen their reputation as premier real estate hubs for both domestic and international buyers.
Investor behaviour is also evolving, with a growing focus on income-generating, long-term assets over speculative strategies. Limited availability of exclusive properties, the resurgence of foreign demand, and the rising prestige of certain urban destinations are key factors underpinning this upward momentum.