The Madrid districts where housing prices have risen the most and the least, according to Euroval

The real estate crisis of 2008 affected all areas of Spain. However, there were marked differences between the different Madrid districts, with the more affordable areas leading the way in terms of declines, as opposed to premium areas that better withstood the loss in property values.

Euroval, the Spanish appraisal company, has published a study on the evolution of house prices in Madrid from the crisis of 2008 to the present day, showing a higher revaluation in the average price of homes in premium areas, above that observed in other districts with lower average prices.

The highest prices are registered in the districts of Centro, Chamartin, Chamberi, Retiro and Salamanca, with average values above €4,000 per square metre, followed by neighbourhoods with average prices, such as Arganzuela, Barajas, Ciudad Lineal, Fuencarral, Hortaleza, Moncloa, Moratalaz, San Blas and Tetuan, which register average prices of between €3,000 and €4,000 per square metre. Finally, those with prices below €3,000 per square metre, considered the most economical, are Carabanchel, Latina, Puente de Vallecas, Usera, Vicálvaro, Villa de Vallecas and Villaverde.

The sample shows a revaluation of 25% in the most expensive districts, which were also the first to start the upward trend in the middle of 2014. It is also worth noting the smaller drop between 2008 and the end of 2013, of around 22%, well below those recorded in districts with lower prices. On the other hand, mid-priced districts suffered a 27% drop, and those with the lowest prices saw decreases of 39%.

In the same way, the revaluation of properties in districts with intermediate prices is still well below that recorded in the most expensive ones, with a 3% increase that began its upward trend in 2015, a year after that of the premium areas. Moreover, these neighbourhoods had suffered a higher price decline than the expensive districts, with a 27% drop.

The more affordable areas continue to show negative data

However, the biggest differences are in the more affordable districts, which still have negative numbers for their flat prices, at -14%. These districts did not begin to recover from the sharp declines until 2016, more than two years after the most expensive areas. The fall recorded at the beginning of the crisis was also much more pronounced in these districts, with a sharp -39%, which is still in the recovery process.

Therefore, properties in the most expensive districts have shown a revaluation of nearly 60% between 2013 and 2022, while those in the lowest and middle-priced districts have a 43% revaluation in both cases – a significant difference of 17 points. The same is true for the 22% drop in the most expensive districts and the 39% drop in the most affordable districts, which is also a difference of 17 points.

These data, therefore, suggest a greater interest in more expensive and higher-end districts, which seem to represent a lower-risk investment, so the pressure of demand has led to a more rapid revaluation of properties compared to areas with average prices or, mainly, more affordable areas. This has led to a stronger recovery in those more expensive areas, which, in turn, were more resilient to the 2008 housing crisis.