How to sell a property in Madrid and how long it takes

Madrid is a vibrant, cosmopolitan city with a wide range of public and private services that make it one of Spain’s most desirable places to live. As a result, demand for housing remains high, particularly in central neighbourhoods such as Salamanca, Chamberí and Retiro.

When it comes to selling a property in Madrid, every step counts towards ensuring a successful sale. In this article, we explore the key factors to consider, offering practical advice and insights into current market trends to help your property stand out.

Property prices in Madrid

The Madrid property market has seen an upward trend in recent years, with a steady rise in house prices. According to idealista's price report, the average price of a home for sale in the Spanish capital stood at €4,473/m² in May 2024.

This represents a 12.4% increase compared to the same period last year, reflecting growing demand and limited supply in certain parts of the city. Quarterly growth has also been positive, with a 4.8% rise over the past three months.

There are notable differences in sales prices depending on the area. For example, the Arganzuela district recorded an average of €4,755/m², while prices in Chamartín reached €6,214/m².

These variations are influenced by factors such as location, housing quality, proximity to services and amenities and overall buyer demand.

Property valuation in Madrid

Valuing a property in Madrid is a complex process that involves assessing a range of factors to determine its true market value. Typically, estate agents and banks rely on a combination of methods and tools to carry out this assessment:

• The property's location: Proximity to services, public transport, schools, hospitals and other essential services.
• The property's condition: The quality of construction, the state of preservation and the modernisation of the facility systems.
• The property's size and design: The number of rooms, the size of the common areas and the layout of the spaces.
• The property's amenities: For example, whether it has air conditioning, heating, a swimming pool or a garden.
• The property's sales history: Recent sales and market trends can influence the current value.
• Costs and expenses associated with ownership, such as taxes, maintenance and utilities.
• Demand and supply of properties in the market: High demand and low supply can increase value, while low demand and high supply can decrease it.
• Local regulations and rules, such as building restrictions or land use regulations.

How to sell your flat in Madrid at the best price?

Selling a home in Madrid can be a complex process, but by following the right steps, you can achieve a sale at a price that works in your favour:

• Make sure the property is in perfect condition and make any necessary repairs or improvements to increase its value.
• It sets a competitive price compared to other similar flats on the market.
• Presentation is key: Make sure your home is clean and tidy. Consider hiring a professional to help you decorate and furnish the space.
• Use different channels to promote your home and post listings on real estate portals like idealista.
• Property photos are essential to attracting buyers. Make sure they're high-quality and show off every space.
• Write a detailed and accurate description: Include information about the location, size, condition and amenities.
• Organise viewings efficiently so the buyer can view the flat and feel comfortable.
• Set a reasonable price and be willing to negotiate.
• Make sure you have all the necessary documents to process the sale.
• Consider hiring an estate agent or attorney specialising in real estate law to help you through the selling process.

idealista

What do you need to sell a flat in Madrid?

Buying or selling property in Madrid requires a series of documents to ensure the legality and transparency of the transaction:

1. Deed of sale
2. Energy certificate
3. Certificate of occupancy
4. Certificate of debts
5. Statutes of the community of owners
6. Be free of debt to the community
7. Last property tax receipt
8. Nota simple
9. Building inspection certificate
10. Utility bills
11. Land Registry Certificate

All the paperwork you need to buy or sell a home

How much does it cost to sell a flat in Madrid?

Here’s a breakdown of the costs involved in buying or selling property in Madrid:

• Municipal capital gains (plusvalía) tax in Madrid: This tax applies when a property is sold, gifted or inherited. It is calculated by multiplying the taxable base by a coefficient established by the local council.
• Personal Income Tax (IRPF): The percentage of personal income tax paid when selling a home is determined by its value, although there are some cases in which this tax is exempt:

1. Up to €6,000 = 19%
2. Between €6,000 and €50,000 = 21%
3. Between €50,000 and €200,000 = 23%
4. For earnings over €200,000, = 26%
5. Exemption: You may be exempt from this tax if you do not make a profit from the sale of the property, if you reinvest the proceeds in the purchase of another property, if you are over 65 years old and the property being sold is your primary residence, or if there is a dación en pago (payment in kind).

• Stamp Duty (AJD): When purchasing a property, whether new or second-hand, with a mortgage, this tax must also be paid on the loan. The standard AJD rate in Madrid is 0.75% of the amount specified in the deed.
• Property Tax (IBI): To calculate this tax, you need to know the coefficient applied by your local municipality (check your council's website) and the cadastral value of your property. Multiply these figures together, and the result will be the annual IBI rate.

Madrid's current market situation

The city of Madrid, as Spain’s economic and financial hub, has seen dynamic growth in its real estate market in recent years. Following the recovery from the economic crisis, the Madrid property market has demonstrated resilience and upward momentum.

Madrid's real estate sector has been marked by a steady rise in demand for both residential and rental properties. Prices have increased moderately, with the most significant growth occurring in the city’s central and most exclusive areas. Construction activity has also accelerated, with several new residential and commercial developments underway.

While challenges remain, such as addressing housing affordability and ensuring the sustainability of urban growth, the overall outlook for Madrid’s real estate market remains positive.

How long does it take to sell a flat in Madrid?

Although it’s difficult to pinpoint the exact time it will take to sell your property, as various factors influence the process, some key insights and analyses can offer a clearer picture of the Madrid market.

In total, 13% of homes sold through idealista in Q1 2024 were on the market for less than a week, according to a study published by the platform. A further 21% sold within one week to one month; 22% took between one and three months; 31% sold within three months to a year; and 13% remained on the market for over a year.

Specifically, Madrid ranked sixth for the highest percentage of sales made within a week, with 17% of sales recorded on idealista in the first quarter of this year.