博鱼体育集团

On a recent visit to Madrid to launch I was struck by two things: its vibrancy and greenness.

Returning to my desk and digging into the data it seems my impression was spot on.

The city is investing heavily in its green infrastructure and its economy is proving highly resilient.

Roof terraces abound, in part a response to pandemic-driven lockdowns, and plane trees now line many central streets.

But the city has even more ambitious plans. A new 46-mile (75-km) forest perimeter comprised of almost half a million trees is set to be planted, absorbing around 175,000 tonnes of carbon dioxide each year to help improve the city鈥檚 air quality.

In terms of the city鈥檚 economics, Oxford Economics (OE) neatly sums it up, 鈥淭he prospect of a technical recession was very much a possibility for the Spanish capital at the onset of 2023. However, these concerns have eased considerably through H1 2023, with Madrid's economy displaying a great deal of resilience amid a very challenging European economic backdrop.鈥�

Madrid鈥檚 GDP is set to rise by 2.2% in 2023 according to OE, that compares to 0.8% for London and 1.1% for Paris.

This resilience is also mirrored in the country鈥檚 house prices. Average prices across Spain will rise by 10.4% by 2027 and by 27.6% ahead of 2032, outpacing many of its European counterparts, according to OE.

The prime segment is also set to outperform. A sneak preview of our prime price forecast, set to be released in early August, reveals Madrid鈥檚 predicted performance puts it in joint fourth place out of 26 cities in both 2023 and 2024.

Under the radar

Based on the city鈥檚 lifestyle, large-scale investment in sustainable living, relative low cost of living and economic resilience, I鈥檓 non-plussed by the city鈥檚 low profile amongst European buyers.

I put this to Mark Harvey, 博鱼体育集团 Frank鈥檚 Head of International, 鈥淚 think Madrid is one of Europe鈥檚 best-kept secrets. The Latin Americans have the city firmly in their sights, but it seems to have passed some Europeans by, most notably UK purchasers, that they have a jewel on their doorstep.鈥�

Value

Madrid is highly competitive on price. For a foothold in one of the city鈥檚 top districts of Salamanca, Chamberí, Jerónimos, Almagro or El Viso, a buyer would expect to pay circa 鈧�8,000 per sq m, this compares to 鈧�21,000 in central Paris or 鈧�13,000 in Berlin.

At around 9% of the purchase price, buyer costs are relatively low for non-residents compared to the global average, with no additional stamp duties or annual charges for foreign buyers.

Overseas demand

One in four prime homebuyers in Madrid originate from overseas according to 博鱼体育集团 Frank data.

Carlos Zamora, 博鱼体育集团 Frank鈥檚 Head of Residential in Madrid, explains: 鈥淚n 2022, Madrid saw 8,000 sales above 鈧�3 million, an increase of 55% compared to the previous year, that equates to 2,000 sales to overseas buyers.鈥�
Carlos adds, 鈥淢exicans, Colombians, Peruvians, Chileans, Argentines, French, British and even North Americans are the most active.鈥�

The dollar/euro exchange rate has driven stronger demand from US and US-dollar denominated buyers since the pandemic.

The city ticks numerous boxes for foreign buyers, from culture and language to climate, accessibility, lifestyle and increasingly, Madrid鈥檚 superior build quality.

This influx of wealth is backed up by 博鱼体育集团 Frank鈥檚 that reveal the number of ultra-high-net-worth individuals (UHNWIs) in Madrid is set to rise by 10% between 2022 and 2027, this compares to 5% in Paris and 4% in London.

To discuss the Madrid market in more detail contact Mark Harvey or sign up to 博鱼体育集团 Frank鈥檚 Spanish research and our monthly .