Madrid real estate market — prices, rental yield and trend
- Average price: $6,850 / m²
- Gross rental yield: 5.04%
- 12-month price change (USD): 3.6%
- Price basis: local-market average
Residential property in Madrid averages $6,850 per square metre, +3.6% in dollar terms over the last twelve months. That makes it the 13th most expensive of the 70 markets in the set.
What a buyer pays in Madrid
The $6,850 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. That is within a few percent of the Spain national average of $6,850, which is unusual — in most countries the leading city runs well ahead. Among the other Spain markets we track, Valencia at $3,839 is 78.4% cheaper, and Barcelona at $6,002 is 14.1% cheaper.
What it earns
Long-term letting returns about 5% gross on the purchase price, 45th of 69 markets by gross yield. Short-term letting is a different business with different costs, but for reference the short-let yield here works out at about 12%, on an average daily rate of $136 and 83% occupancy.
How this figure is built
The price figure for Madrid comes from the source we judge most reliable for this market. It was last refreshed on 2026-07-23. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way, which is what lets Madrid be compared with a country average or another city.
Sources: idealista jun-26 · idealista.com · globalpropertyguide.com · airbtics.com. Snapshot: 2026-07-23.
Latest Madrid market analysis
- Spanish Asking Prices Slipped 0.3% in August, the First Monthly Fall Since 2022 — 2026-09-03
- Spanish Asking Rents Reached €15.1 per Square Metre in August, up 5.8% on the Year — 2026-09-02
- Beach Rentals on the Catalan Coast Averaged €1,370 a Week This Summer — 2026-08-31
- Spain Signed 45,907 Home Mortgages in June, the Most for the Month Since 2010 — 2026-08-27
- Spain Is 740,000 Homes Short and Needs 230,000 a Year to Close the Gap — 2026-08-26
- Madrid's Commuter Belt Is Forecast to Beat the Capital: 8% on Prices, 10% on Rents — 2026-08-23
- The 12-Month Euribor Broke 3% on 21 August, Its Highest Daily Fixing Since September 2024 — 2026-08-22
- Renting in Spain Now Takes 39% of Household Income, Ten Points More Than Buying — 2026-08-20
- BBVA Expects Spanish House Prices to Rise 12% in 2026 While Sales Fall 7.3% — 2026-08-14
- Spanish Home Sales Rose 1.6% in June, Ending Five Months of Decline — 2026-08-11
- Spanish Resale Home Prices Climb 13.1% in a Year as Valencia Sets a Record — 2026-08-10
- Spain: A Country Overview for International Property Buyers — 2026-07-03