Luxury homes in Madrid: key data for November 2025

Prime market pulse in central Madrid

The general residential market remains active, but the prime segment in central Madrid — Recoletos, Castellana, Jerónimos, Almagro and Justicia — continues to show strong momentum when a property combines an exceptional location, classic architecture and top-quality renovation. International demand remains high, with notable activity from buyers in Latin America, France, Italy, the UK and the US, reinforcing Madrid’s status as a global destination.

Prices: prime and ultra-prime continue to rise

The cycle is clearly expansionary. In Salamanca–Recoletos and Castellana, renovated luxury homes range from €14,000–€20,000/m². Ultra-prime properties (penthouses, terraces, unique views) reach €20,000–€25,000/m².

In Jerónimos, values range from €12,000–€17,000/m², while Almagro–Justicia registers €10,000–€15,000/m² for high-end renovated properties. These levels reflect the structural scarcity of top-quality inventory on the most sought-after streets.

Recent BARNES transaction: benchmark in Recoletos

BARNES Madrid recently completed the sale of an exceptional apartment in Recoletos at €20,000/m². The asset combined outstanding finishes, bespoke design and impeccable execution. These unique properties — in representative buildings with signature renovations — sustain very high demand and record prices due to their extreme scarcity.

Prime rental market: corporate and international demand

Luxury rentals in Recoletos, Castellana, Serrano, Almagro and Justicia operate far above the city average. Furnished residences of 150–250 m² range from €6,000 to €9,000/month; penthouses and exceptional units can reach €10,000–€15,000/month. Demand comes from senior expatriates, corporate executives, embassies and international families, ensuring fast occupancy for turnkey properties.

What prime buyers demand in Madrid today

The fastest transactions share a common value framework:

• “10/10” location: Recoletos, Castellana, Jerónimos, Almagro, Justicia.
• Classic architecture in representative buildings with concierge and pristine common areas.
• Full high-quality renovation with a consistent design throughout the home.

When these variables align, the market shows strong liquidity and price resilience, both in luxury apartments and penthouses with terraces in central Madrid.

2026 outlook: continued growth and stronger competition for unique assets

• Further price increases for top-quality renovated homes.
• High liquidity in the €2–€6 million range.
• Growing rental demand above €6,000/month.
• Intense competition for properties with terraces, views, parking and architecturally significant buildings.

Central Madrid will remain a scarce, architecturally unique and highly globalized market, with clear preference for Salamanca–Recoletos/Castellana, Jerónimos and the Almagro–Justicia axis.

Implications for owners and investors

For owners (selling)

The combination of location + outstanding renovation speeds up commercialization and improves net proceeds. Preparing a technical dossier, energy certification and high-level home staging helps achieve the best price, especially in Recoletos and Jerónimos.

For buyers (investment or personal use)

The scarcity of outstanding properties justifies fast decision-making and thorough due diligence. In Almagro–Justicia, renovation quality is decisive for reaching the upper band (€10,000–€15,000/m²). In Castellana–Recoletos, penthouses with terraces and premium work sustain the ultra-prime segment.

For rental portfolios

Furnished properties of 150–250 m² in prime areas capture €6,000–€9,000/month, and unique assets €10,000–€15,000/month, driven by qualified expatriate and corporate demand. Professional management and impeccable presentation are key to minimizing vacancy.

In 2025, Madrid consolidates a selective yet intense prime market, with rising prices and a very solid luxury rental segment. The structural scarcity of top-quality properties will continue to drive value in 2026, particularly in Salamanca–Recoletos/Castellana, Jerónimos, Almagro and Justicia.

For confidential valuations, off-market acquisitions and sales, and advisory services for international buyers, we are available at Velázquez 15, at our BARNES Madrid office.