Madrid and Barcelona, exclusive capitals to live in

Madrid and Barcelona are the two most populated cities in Spain. These two metropolises top numerous rankings as the country’s main real estate markets. In this article we will outline some of the reasons why Madrid and Barcelona are so attractive.

They are the second and third most expensive provincial capitals to buy a home, in Madrid it costs 3,780 euros per square metre, only behind San Sebastián, which exceeds 4,000 euros, while in Barcelona it is 3,714 euros, according to data from the fourth quarter of 2023 from the Tinsa IMIE statistics.

Likewise, the residential offer maintains an upward trend in prices, which have risen by 6.1% and 3.5% year-on-year, respectively. By districts, the 10 most expensive areas in the country are located in these two cities, specifically seven in Madrid and three in Barcelona, with the Salamanca district at 5,898 euros per square metre and Sarrià – Sant Gervasi at 4,999 euros at the top.

Investing in housing in Madrid and Barcelona

Both capitals are positioning themselves every year as interesting places for investors to buy property. Proof of this is that they form part of the Top 10 most attractive European cities according to PWC, with Madrid in third place and Barcelona in tenth. The main reason that drives investors to these locations is the profitability and stability that characterises both markets.

In addition, despite the fact that prices have been rising for more than a year and a half, they are considerably lower than in other European capitals. The price of residential property in Spain has increased by 12% compared to 2010, in the midst of the economic crisis, compared to the European Union average, where it has risen by 48%, according to Eurostat.

These large capitals are not only the destination for investors but also for national and foreign buyers attracted by luxury homes. In Barcelona the purchase of exclusive homes increased by 43% and in Madrid by 50% in October last year, according to Lucas Fox.

Lack of housing supply

Madrid and Barcelona account for a large part of the demand for house purchases at present, and the forecasts are that this will continue to grow. In the next 10 years, half will be concentrated in these regions, where Sociedad de Tasación estimates that 800,000 new properties are needed.

In this context, the role of companies dedicated to house flipping such as Homes by Gestilar, which acquires second-hand properties in excellent locations to refurbish them and return them to the market in a more sustainable way, making up for the lack of supply in central areas of cities, is key.

What type of house are you looking for? Find opportunities in our offer of flats in Madrid and Barcelona with two and three bedrooms. You can see that all Homes homes meet rigorous quality and design requirements that make each home unique.