Property prices Madrid Barcelona

The real estate market is recovering from pandemic stagnation: Alcobendas leads in Madrid with 5.4% growth, while Esplugues leads in Barcelona with 9%. Although COVID-19 affected housing demand, the sector recovered faster than other industries. In the second quarter, property prices increased in 76% of the 25 most populated cities in Madrid and in 56% of Barcelona cities. Apartments became 2.5% more expensive year-on-year in Madrid and 2.9% in Barcelona.

Gradual Recovery

Recovery remains uneven across municipalities. Despite quarterly improvements, average prices in major municipalities have not yet returned to pre-pandemic levels. Alcobendas showed quarterly growth of 5.4%, while Tres Cantos and Arganda del Rey decreased by 1.9% and 1.2% respectively. San Fernando grew by 3.8%, Las Rozas and Getafe by 3.4%, Majadahonda by 3.3%.

Apartment prices in Madrid itself remained virtually unchanged with quarterly growth of 0.1%, although annual growth was 2.5% at an average price of €3,088 per square meter — the highest figure in the region. Mortgage applications in Madrid increased by 31.1% month-on-month and 46.1% year-on-year by June.

Of Madrid’s 25 largest municipalities, only Tres Cantos, Rivas-Vaciamadrid, the capital Madrid, and Torrejón de Ardoz exceeded pre-pandemic price levels. Most municipalities remain below first quarter 2020 levels, with Getafe falling 9.9%.

Price Table by Municipalities (€/m²)

Madrid: €3,088 | Pozuelo de Alarcón: €2,978 | Majadahonda: €2,889 | Alcobendas: €2,709 | Tres Cantos: €2,572 | Las Rozas: €2,429 | Boadilla del Monte: €2,172 | Alcorcón: €1,949 | Getafe: €1,747 | Aranjuez: €1,262

Barcelona Accelerates

In Barcelona province, nine major cities exceeded pre-pandemic levels by the second quarter: Barcelona, Manresa, Vilanova i la Geltrú, Vilafranca del Penedès, Sant Cugat del Vallès, Granollers, Mollet del Vallès, Sant Feliu de Llobregat, and Gavà.

Esplugues de Llobregat led in quarterly growth — 9%, followed by Viladecans with 3.3% and Badalona with 2.9%. Barcelona itself grew only 0.5%, partly due to residents moving to suburbs in search of more spacious housing with open space.

Sant Cugat del Vallès ranks first in price per square meter — €3,432, exceeding Barcelona at €3,359. Manresa offers the most affordable prices in the region — €1,080 per square meter. Meanwhile, Sabadell decreased by 0.9%, Manresa by 7.4%, and Vilafranca del Penedès by 3.7% quarterly.

Where Will Prices Head?

Forecasts indicate slowing pace and stabilization across Spain as a whole. However, Madrid and Barcelona remain exceptional markets with dynamic response to economic recovery. Both cities attract significant foreign investment, putting them ahead of national averages. Madrid has additional advantages due to institutional stability and pro-investment policies.