This increase placed the price per square meter in Madrid at 4,828 euros, compared to 4,439 euros in Barcelona and 2,203 euros for the national average, according to the report “Housing for sale in 2023” prepared by Fotocasa.
The generalized increase in used housing prices in Spain, which on average rose by 8.1% over the past year, had its greatest impact in Madrid. At the close of 2023, prices in the capital soared 15% compared to 2022, quintupling the growth recorded in Barcelona, where they rose 3.1%.
María Matos, Director of Studies and spokesperson for Fotocasa, highlights that “the concentration of investors in Madrid has caused prices to increase significantly, making it a safe haven in the face of the current economic uncertainty”. She also adds that “Madrid is experiencing a much more intense demand than Barcelona”.
Salamanca neighborhood: prices up to 268% higher than the national average
Prices rose in almost all of Madrid’s districts, except in Ciudad Lineal, where they fell by 0.5%. The largest price gap was recorded in Barrio de Salamanca, where the average price per square meter reached 7,016 euros, 268% higher than the national average.
Four districts recorded annual increases of more than 10%, with the Centro district standing out with a rise of 23.3%, followed by Barrio de Salamanca (15.5%), Tetuán (13.6%) and Moratalaz (10.5%).
In contrast, Villaverde remains the most affordable district, with an average price of 1,998 euros per square meter and an increase of 2.4% over 2022, followed by Usera (2,336 euros) and Puente de Vallecas (2,426 euros).
The five most expensive districts in Madrid have remained unchanged over the last nine years. Barrio de Salamanca continues to lead with €7,016 per square meter in December 2023, followed by Centro (€6,825), Chamberí (€6,475) and Chamartín (€5,978).
The rise in prices in Madrid is due to its growing attractiveness to real estate investors, making it the third most desirable destination in Europe after London and Paris. According to the “Emerging Real Estate Trends in Europe” report by PwC and the Urban Land Institute (ULI), factors such as its advanced infrastructure, pleasant climate, flexibility in urban development and high quality of life are driving this trend.
Moderate increases in Barcelona
In Barcelona, prices closed 2023 with increases in nine of the ten districts. The district of Gràcia registered the highest annual variation with 10%, followed by Horta-Guinardó with 7.2% and Sant Andreu with 7%.
On the other hand, Nou Barris remains the cheapest district in Barcelona, with an average price of 2,727 euros per square meter, followed by Sant Andreu (3,407 euros) and Sants-Montjuïc (3,474 euros).
In terms of prices, Sarrià-Sant Gervasi led with 5,875 euros per square meter, after an increase of 3.5%. It was followed by Eixample (5,695 euros), Les Corts (5,106 euros) and Gràcia (5,052 euros).