Madrid real estate market — prices, rental yield and trend
- Average price: $7,501 / m²
- Gross rental yield: 4.32%
- 12-month price change (USD): 3.7%
- Net rental yield: 3.5%
- Transaction cost: 15.3%
- Bubble-risk band: elevated
- Price basis: local-market average
Residential property in Madrid averages $7,501 per square metre, +3.7% in dollar terms over the last twelve months. That makes it the 4th most expensive of the 83 markets in the set.
What a buyer pays in Madrid
The $7,501 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. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 15.3% of the price here. On a 100 m² apartment at the average price that is roughly $114,765 on top of the $750,100 purchase price. That is above the 10.2% median across the set — the entry cost is part of the investment case here. Against the Spain national average of $3,390, Madrid carries a 121.3% premium — the gap between this market and the country as a whole. Among the other Spain markets we track, Valencia at $4,021 is 86.5% cheaper, and Barcelona at $6,306 is 19% cheaper.
What it earns
A square metre lets for about $27.0 a month. Against a purchase price of $7,501 per square metre that is 4.3% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 76th of 88 markets by gross yield. Rental income is taxed at 19–24% — the rate is not a single number here. That is the difference between 3.3% and 3.5% net on the same property. The 3.5% net figure we publish uses 19%.
How the tax works. 19% or 24% depending on where the owner is tax-resident, not on the rent level. Owners resident in the EU/EEA pay 19% on net income after deductible expenses (TRLIRNR arts. 24.6 and 25.1.a); owners resident outside the EU/EEA pay 24% on the gross rent with no deductions (art. 24.1). The 50–60% long-term letting relief of the resident regime does not apply to non-residents. A 2025 National Court ruling (SAN 3630/2025) would extend deductions to non-EU owners, but the tax agency has not yet accepted it. Source: agenciatributaria.gob.es.
Where the price sits against its own history
Prices are +60.5% over five years and +124.6% over ten in local terms. Today’s level sits 41.7% above the city’s own long-run trend. A gap that size does not have to close, but it is the number to watch. Glopra’s bubble-risk score for Madrid is 76 out of 100 — elevated risk. Of the 58 markets scored, 5 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.
Madrid house price index, 2016–2026 (2016 = 100)
| Year | Index |
|---|---|
| 2016 | 100 |
| 2017 | 104.3 |
| 2018 | 124 |
| 2019 | 132.9 |
| 2020 | 130.9 |
| 2021 | 131 |
| 2022 | 137.8 |
| 2023 | 144 |
| 2024 | 164.9 |
| 2025 | 200.3 |
| 2026 | 213.8 |
Rebased to 100 in 2016, the index stands at 213.8 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.
Who can buy in Madrid
Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.
How this figure is built
The price figure for Madrid is built from asking prices from listings. It was last refreshed on 2026-09-22. 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: 2026-09-22.
Latest Madrid market analysis
- Spain Plans 532 Affordable Rental Homes on Ibiza With Leases of Up to 75 Years — 2026-09-20
- 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
Related markets: Spain · Valencia · Barcelona · Almeria · Santa Cruz de Tenerife · Girona (Costa Brava)