Luxury Real Estate Prices in Madrid Reach Record Highs
New developments in the city see prices soar to €27,500 per square meter as demand for ultra-luxury homes rises.
Madrid has emerged as a leading destination for luxury real estate in Europe, marked by a significant increase in property prices.
A recent report by a real estate consultancy firm highlights that the average sale price for new ultra-luxury developments is expected to reach €25,000 per square meter, with properties priced over €5 million categorized as ultra-luxury.
This represents more than a 2.5 times increase compared to the average prices from a decade ago when the prestigious Lagasca 99 project was launched.
In Barrio de Salamanca, one newly developed property has already been listed for an unprecedented €27,429 per square meter, drawing close to the pricing levels in Paris.
The surge in prices can be attributed to the growing popularity of branded residences, which are properties associated with luxury hotel brands offering additional services.
Such homes not only command a higher demand and greater appreciation but are sold at a premium compared to traditional luxury properties.
For instance, it is reported that a residence within the Four Seasons hotel in Canalejas was resold for over €30,000 per square meter.
The report identifies several high-end hotel brands eager to enter the branded residences market in Madrid.
Luxury names such as Aman, Rosewood, One & Only, Raffles, and Six Senses are seeking to stamp their identity on residential offerings in the city.
In addition, other well-known luxury brands including The Ritz-Carlton, St Regis, Waldorf Astoria, Park Hyatt, Bulgari, Jumeirah, W, JW Marriott, Anantara, Intercontinental, Fairmont, and Grand Hyatt are also looking to establish a presence in this segment.
The Four Seasons was the first project of its kind linked to a hotel brand in the capital, followed by the Mandarin Oriental, located at 47 Hermosilla Street, which boasts an average price of €19,000 per square meter, reaching up to €25,000 in certain apartments.
Other projects include SLS on Infanta Mercedes Street and Banyan Tree at Padilla 32, with prices approaching €20,000.
More initiatives are anticipated, including developments at Alcalá 44 by Besant Capital and Blasson, and Cedaceros 9 by the Dubai-based group Lamar Development.
Current market conditions have driven an unprecedented pace of development in the luxury sector.
The stock of available luxury residences in Madrid stands at 153 units, with 52 classified as ultra-luxury.
According to industry experts, as demand continues unabated, the luxury market is expanding beyond its historical epicenter in Barrio de Salamanca to include neighborhoods such as Chamberí, El Viso, Centro, and Justicia, as well as prestigious residential areas like La Moraleja in Alcobendas and La Finca in Pozuelo de Alarcón.
Notable upcoming projects include a development at 50 María de Molina, spearheaded by BlackRock and Grupo Lar, featuring 158 units; Recoletos 14 by Altamar and Terralpa; 42 María de Molina by developer Balaq; 22 Velázquez with Inbest GPF; Sagasta 31 by Impar; 28 Zurbarán by Ardian; and 11 Jordán by Dazia, all representing conversions of office space into luxurious residential units.
Furthermore, initiatives such as General Castaños 4 by the Ardid family may exceed €20,000 per square meter at their peak, while Culmia and Alterna Consulting are also planning projects in La Solana de la Moraleja.
A recent report by a real estate consultancy firm highlights that the average sale price for new ultra-luxury developments is expected to reach €25,000 per square meter, with properties priced over €5 million categorized as ultra-luxury.
This represents more than a 2.5 times increase compared to the average prices from a decade ago when the prestigious Lagasca 99 project was launched.
In Barrio de Salamanca, one newly developed property has already been listed for an unprecedented €27,429 per square meter, drawing close to the pricing levels in Paris.
The surge in prices can be attributed to the growing popularity of branded residences, which are properties associated with luxury hotel brands offering additional services.
Such homes not only command a higher demand and greater appreciation but are sold at a premium compared to traditional luxury properties.
For instance, it is reported that a residence within the Four Seasons hotel in Canalejas was resold for over €30,000 per square meter.
The report identifies several high-end hotel brands eager to enter the branded residences market in Madrid.
Luxury names such as Aman, Rosewood, One & Only, Raffles, and Six Senses are seeking to stamp their identity on residential offerings in the city.
In addition, other well-known luxury brands including The Ritz-Carlton, St Regis, Waldorf Astoria, Park Hyatt, Bulgari, Jumeirah, W, JW Marriott, Anantara, Intercontinental, Fairmont, and Grand Hyatt are also looking to establish a presence in this segment.
The Four Seasons was the first project of its kind linked to a hotel brand in the capital, followed by the Mandarin Oriental, located at 47 Hermosilla Street, which boasts an average price of €19,000 per square meter, reaching up to €25,000 in certain apartments.
Other projects include SLS on Infanta Mercedes Street and Banyan Tree at Padilla 32, with prices approaching €20,000.
More initiatives are anticipated, including developments at Alcalá 44 by Besant Capital and Blasson, and Cedaceros 9 by the Dubai-based group Lamar Development.
Current market conditions have driven an unprecedented pace of development in the luxury sector.
The stock of available luxury residences in Madrid stands at 153 units, with 52 classified as ultra-luxury.
According to industry experts, as demand continues unabated, the luxury market is expanding beyond its historical epicenter in Barrio de Salamanca to include neighborhoods such as Chamberí, El Viso, Centro, and Justicia, as well as prestigious residential areas like La Moraleja in Alcobendas and La Finca in Pozuelo de Alarcón.
Notable upcoming projects include a development at 50 María de Molina, spearheaded by BlackRock and Grupo Lar, featuring 158 units; Recoletos 14 by Altamar and Terralpa; 42 María de Molina by developer Balaq; 22 Velázquez with Inbest GPF; Sagasta 31 by Impar; 28 Zurbarán by Ardian; and 11 Jordán by Dazia, all representing conversions of office space into luxurious residential units.
Furthermore, initiatives such as General Castaños 4 by the Ardid family may exceed €20,000 per square meter at their peak, while Culmia and Alterna Consulting are also planning projects in La Solana de la Moraleja.
Translation:
Translated by AI
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