Business · Economy · 10 hrs ago
Madrid home prices rise more slowly but remain at record highs
Home prices in Madrid rose 12.9% in the third quarter, a slower pace than the previous quarter but still a sharp increase.
The average price reached €4,765 per square metre, a record and 23.2% above the level recorded during the 2007 housing bubble.
Buying a typical home has become harder: the purchase cost now takes 66% of the average household’s available income, compared with 35% considered reasonable.
Some residents are being pushed towards more affordable areas with good transport links.
Demand is easing amid higher interest rates, inflation and affordability pressures, but a shortage of homes is still driving prices up.
Madrid is now Spain’s second-most expensive capital for buying a home, behind San Sebastián.
Madrid home prices rose 12.9% year on year in the third quarter, slowing from 15.5% in the second quarter.
The average price reached €4,765 per square metre, a record high.
Prices in Madrid were 23.2% above their level during the 2007 housing bubble.
The average cost of a 90-square-metre flat in the capital was €428,850.
All Madrid districts recorded price increases, though the gains were below 10% in Centro and Moncloa-Aravaca.
- Who
- Home buyers and sellers in Madrid, as described in data from Tinsa by Accumin.
- What
- Madrid home prices continued to rise but at a slower pace, reaching a record high.
- When
- In the third quarter; the article was published on 24 October 2026.
- Where
- Madrid, Spain.
- Why
- Demand is moderating amid inflation, higher interest rates and difficulty accessing housing, while limited supply continues to support price rises.
This story does not have two clearly opposing sides.
Madrid home prices rose 18.1% year on year.
The annual increase in Madrid home prices slowed to 15.5%.
Prices rose 12.9% year on year, reaching €4,765 per square metre.
- Madrid price increase
- 12.9% year on year in the third quarter
- Average price
- €4,765 per square metre
- Price compared with 2007 bubble
- 23.2% higher
- 90-square-metre flat
- €428,850 on average
- Highest-priced district
- Chamberí, at €7,344 per square metre
What people are saying
Despite resilient employment and a household savings rate that, although normalising, remains above its long-term average, residential demand is moderating across the board amid rising inflation linked to the war in the Middle East, higher interest rates and growing difficulty accessing housing.
The intense and consecutive price increases the capital has accumulated since the start of 2025, together with recent interest-rate rises and a smaller yield gap compared with public debt, are moderating its appeal to investors, although it continues to attract capital on expectations of future returns.