Terreta Spain, updated in May 2026
Madrid is booming. With prices that are competitive with those in Paris and London, a high quality of life, and a thriving culinary and cultural scene, Madrid is emerging as the new hotspot for luxury real estate.
The figure that says it all: Madrid has once again been ranked the world’s number one destination for luxury real estate investment for the second consecutive year—ahead of London, Paris, and Dubai. It reaffirms its status as the most sought-after capital among UHNWIs (Ultra High Net Worth Individuals: individuals whose net worth or investable assets generally exceed 30 million U.S. dollars).
Are you thinking about buying a luxury property in Madrid? Contact our team of experts.
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Luxury Real Estate in Madrid: The Numbers Speak for Themselves
The luxury market figures for Madrid speak for themselves.
The price per square meter in Madrid's prime segment rose by +153.7% since 2014; a property purchased ten years ago in the Salamanca neighborhood is now worth more than double its original price. And the momentum shows no signs of slowing down. Some properties in Salamanca are now breaking the €19,000/m² mark, and the most exclusive deals are even exceeding €23,000/m².
Luxury Real Estate: Why Madrid Is Thriving
Madrid attracts the wealthy because it combines:
- Legal certainty.
- Reliable public services.
- An efficient transportation network.
- Quality of urban life, with plenty of green spaces, a sense of safety, high-quality infrastructure, and a first-rate cultural scene.
Madrid Quality of Life Index, May 2026 (Numbeo)
Who buys luxury goods in Madrid?
In Madrid, more than 90% of luxury properties are purchased by foreigners. Non-EU nationals account for 49% of purchases, EU nationals for 43%, and Spaniards for only 8% (Idealista, 2025).
According to Barnes, the same trend holds true in Madrid: a significant portion of buyers in the luxury segment are foreigners, and among them, the largest group is South Americans, followed by the British, the French, and Americans.
Three types of companies dominate the market:
Latin Americans
This has been the major trend over the past five years. Wealthy Venezuelans, Colombians, Mexicans, Argentines, and Brazilians are choosing Madrid for one simple reason: the language, Europe’s legal stability, and a quality of life that their own capitals can no longer offer. Madrid has become their “safe haven” for wealth in Europe.
The British
Active in Madrid’s luxury market long before Brexit, they have accelerated their shift toward Spain since 2021. In the prestige segment, they are not looking to optimize their tax situation; rather, they are seeking a high-quality European pied-à-terre in a dynamic city.
To learn more, check out our articles:
- Shopping in Spain from the United Kingdom: How Brexit Has Changed Things
- Tax Residents in the United Kingdom: How Can You Make the Most of Your Real Estate Purchase in Spain?
The French
French buyers account for just over 20% of demand in the Madrid region. They include entrepreneurs, senior executives, and affluent families drawn by the region’s proximity to Paris (a 2-hour flight), favorable tax policies, and a world-class culinary and cultural scene.
Interesting fact: According to Diza Consultores (the new luxury market observatory in Madrid), there is a noticeable trend toward a younger demographic in certain neighborhoods, with a greater presence of international buyers, expatriates, and highly skilled professionals aged 30 to 45.
Are you thinking about buying a property in Madrid? Schedule a call with our experts.
Luxury Prices in Madrid: The Reality of the Market
Madrid's Luxury Neighborhoods
Explore our interactive map of Madrid’s luxury real estate neighborhoods.
Salamanca, Madrid's Passy
The premier neighborhood for luxury in Spain. Haussmann-style buildings, luxury boutiques, and a well-established international clientele. The average price in the Barrio de Salamanca is €10,099 per square meter (Idealista, May 2026), with exclusive properties reaching nearly €19,000 per square meter.
From 9,000 to 19,000 €/m² depending on the location.
Jerónimos / Retiro, the most exclusive neighborhood
Across from Retiro Park, just a stone’s throw from the Prado. In the Jerónimos neighborhood, Madrid’s most expensive property—20.9 million euros for 1,008 m²—has just been listed for sale. Prices in the Retiro neighborhood regularly exceed 7,800 €/m².
From 8,000 to 20,000 €/m² and even higher for exceptional locations.
Chamberí, the choice of the well-to-do
The favorite neighborhood of Madrid's upper class. Belle Époque architecture, the Santa Bárbara Market, and an authentic neighborhood atmosphere. The market is very active; properties sell quickly.
From 7,000 to 12,000 €/m².
Madrid’s luxury real estate market is no longer limited to the classic neighborhoods in the city center. According to Diza Consultores, neighborhoods such as Almagro, Justicia, Ibiza, and Niño Jesús are experiencing rapid growth and are emerging as new hubs of luxury. On the outskirts, Pozuelo, La Moraleja, Boadilla del Monte, and Majadahonda are now an integral part of Madrid’s prime real estate ecosystem, driven by demand for single-family homes, space, and quality of life—a trend that has solidified in the wake of the pandemic.
Almagro: Understated Prestige
Between Chamberí and Salamanca. Embassies, mansions, luxury apartment buildings. The preferred neighborhood of diplomats and wealthy families seeking to escape the hustle and bustle of Salamanca.
From 7,000 to 14,000 €/m².
La Moraleja, Madrid's Beverly Hills
This neighborhood, which is highly sought after by French-speaking families and luxury homebuyers, also owes part of its appeal to the presence of the La Moraleja campus of the Lycée Français de Madrid. Located north of the capital, outside the city center, this residential area is in high demand for its garden villas, private security, international schools, and lush green surroundings, making it a top choice for expatriates with children. With prices starting around €2 million for family homes, La Moraleja stands out as one of the most exclusive neighborhoods on the Madrid real estate market.
To learn more, check out our article: La Moraleja in Madrid, a French village.
From 5,000 to 10,000 €/m² (single-family homes).
Pozuelo de Alarcón: The Choice for High-End Families
Just 15 minutes from downtown, this premium family-friendly neighborhood is located in northwest Madrid. It offers the highest quality of life, green spaces, and international elementary and high schools with English-language curricula. Buyer profile: Franco-Spanish families and European expatriates.
From 4,000 to 8,000 €/m².
Wondering which neighborhood to buy in Madrid? Contact our team—an expert will provide you with all the information you need to make a decision.
Madrid vs. Paris vs. London: Three Capitals, Three Investment Approaches
Madrid isn’t in the same league as Paris or London, and that’s precisely what attracts the world’s wealthiest individuals. In the prime segment, Madrid still offers properties priced between 10,000 and 15,000 €/m² in the most desirable locations, while Paris and London more readily exceed the 20,000 €/m² threshold in their most exclusive neighborhoods.
The result: Madrid combines prestige, market depth, and a more reasonable entry price, while Paris remains a well-established investment in real estate and London a more mature market, though sometimes less dynamic in the short term.
The good news: Madrid remains the most affordable option among the three capitals, offering luxury that’s more accessible than in Paris and London.
The Madrid vs. Valencia Match: Two Markets, Two Strategies
Madrid and Valencia aren't in the same league, and that's exactly what makes them complementary.
| Madrid | Valencia | |
| Luxury segment prices | 9,000–20,000 €/m² | 6,000–11,000 €/m² |
| Dominant Buyer Profile | Latin Americans, French, British | British, Dutch, French |
| Gross Profitability | 2.5–4% | 4–5.5% |
| Potential capital gain | Mature market, steady growth | A market in the process of catching up, with strong potential |
| Rental Regulations | Strict in the center | Intermediate |
- Madrid is a mature real estate market; people buy there for the property’s intrinsic value, the prestige of the location, and the depth of the rental market.
- Valencia is a market that’s catching up; people buy there for profitability and capital gains. Both approaches are valid, depending on the investor’s profile.
Here's a good tip: If your goal is to build wealth, choose Madrid; if your goal is profitability, choose Valencia.
What Terreta Spain Does for You in Madrid
Terreta Spain operates primarily in the Valencian Community, but supports its clients on projects in Madrid through its network of partners specializing in the luxury segment. For a purchase in Madrid, we coordinate sourcing, due diligence, and introductions to the right professionals—notaries, tax advisors, and attorneys.
Do you have a project in Madrid or Valencia? Tell us your budget and your goal, and we'll guide you toward the most suitable market.
Schedule a call with our experts.
For more information:
- Luxury Real Estate in Valence: What You Need to Know
- Buying Property in Spain Through a Family Office
- Shopping in Spain from Dubai
- Shopping in Spain from Qatar
- Shopping in Spain from Kuwait
- Steps for Buying Property in Spain
- Lombard Credit
- Property Division, Inheritance, Tax Residency: What You Need to Know Before Buying Property in Spain
- Set up a Spanish SL to optimize the tax treatment of your investment
Sources: BARNES City Index 2026, Idealista February 2026, Diza Market 2025, Savills 2026, Indomio July 2025.
FAQ: Luxury Real Estate in Madrid
Which neighborhood in Madrid should a French-speaking family choose?
La Moraleja is the top choice for French-speaking families; it is home to the La Moraleja campus of the Lycée Français de Madrid, featuring villas with gardens, private security, and international schools. Pozuelo de Alarcón is a more affordable alternative, just 15 minutes from downtown, with international high schools offering instruction in English and an exceptional quality of life. For families who prefer the city center, Chamberí offers the best balance between authentic neighborhood life and luxury.
How much does a luxury apartment cost in Salamanca?
According to Idealista, the average price in the Barrio de Salamanca will reach 10,001 €/m² in 2026. For a 100 m² apartment, you can expect to pay around 1 million euros at the entry level of the market. The most exclusive properties—corner units, high floors, and premium renovations—can reach up to 19,000 €/m², or nearly 2 million for 100 m². Off-market properties regularly exceed these price caps.
Is Madrid more expensive than Paris?
In the standard segment, Madrid is still significantly cheaper than Paris. But in the luxury segment, the gap is narrowing. Prestigious properties in Paris can reach up to €25,000 per square meter in the most exclusive districts, compared to €19,000 to €20,000 per square meter for Madrid’s top locations. Madrid therefore remains the more sensible choice of the two capitals, offering an unbeatable quality-of-life-to-price ratio. And unlike Paris, prices in Madrid are still rising by 12 to 15% per year, which strengthens its appeal as an investment.
Can you buy property in Madrid without living there?
Yes. Purchases by non-residents are perfectly legal in Spain. Terreta Spain coordinates the entire process remotely through its network of partners in Madrid, including sourcing, legal due diligence, a notary, and a tax advisor. A notarized power of attorney allows you to sign the deed without having to travel.
What is the rental yield in Madrid's luxury housing market?
Between 2.5% and 4% gross, depending on the neighborhood and size; lower than in Valencia (4% to 5.5%), but offset by very strong rental demand and greater liquidity in the resale market. Madrid attracts a solvent international clientele on long-term assignments, particularly executives from multinational companies and expatriate families.
Madrid or Valencia: Which market should you choose?
It depends on your goal. Madrid is a mature real estate market; people buy there for the property’s intrinsic value, the prestige of the location, and the security of a long-term investment. Valencia is a market that’s catching up; people buy there for rental returns and medium-term capital appreciation. Both approaches are valid; some of our clients combine the two. Contact our team for a simulation tailored to your profile.
What are the costs involved in purchasing a luxury property in Madrid?
For an older property (the most common type in Madrid’s luxury market), the ITP (Impuesto sobre Transmisiones Patrimoniales) is 6% in the Community of Madrid, one of the lowest rates in Spain. Added to this are notary, registration, and administrative fees, bringing the total costs to approximately 8 to 9% of the property’s price.
