House prices soar in the south of Madrid
In recent months, the southeast area of Madrid has experienced a significant increase in housing prices, establishing itself as one of the areas with the highest growth in the capital. This rise is due to a combination of factors that we will analyze throughout this article.
According to data from Activum Real Estate, with over 25 years of experience in the real estate sector, housing prices in southeast Madrid show a sustained upward trend in various areas, driven primarily by high demand for housing and the consolidation of emerging residential areas on the outskirts of Madrid.
Increases of up to 9% in housing prices
According to the report, housing prices in southeast Madrid have increased by between 4% and 9% in the first half of 2024. The neighborhood with the highest increase in this case was Los Berrocales, with a rise of 8.4%, followed by El Cañaveral, with 6.3%, Los Ahijones, with 5.7%, and Vallecas, with 4.6%.
However, despite these figures, it should be noted that while Vallecas has seen the smallest rise in housing prices, it is still the most expensive neighborhood in southeast Madrid. At the same time, Los Berrocales – the neighborhood with the largest increase – remains the cheapest in the southeast.
The drop in supply, combined with high demand, has been a key factor in the area’s price appreciation. This partly explains why these percentages are higher than the Spanish average for the first half of the year, which stands at 4.16%, according to Idealista. In this context, all four neighborhoods also surpass the growth rate of the Community of Madrid as a whole (5.61%).
El Cañaveral becomes a consolidated residential neighborhood
In El Cañaveral, where housing prices have increased by 148% over the last eight years, buying a house now costs around 300,000 euros. Some three-bedroom homes are approaching 350,000 euros, and four-bedroom homes are nearing 450,000 euros.
Likewise, the available housing supply has decreased due to the neighborhood’s consolidation, driven by improvements in connectivity and continuous infrastructure development, such as the arrival of new public transport lines and the creation of green and commercial spaces. According to Activum, the number of properties for sale has dropped from over 2,000 in the years before the pandemic to fewer than 900 available units last year.
Housing market trends in southeast Madrid
Given this data, everything indicates that the southeast Madrid housing market will continue its upward trend in the coming months. The consolidation of neighborhoods like El Cañaveral and the development of new residential areas such as Los Cerros and Berrocales will continue to be attractive to both buyers and investors.
Additionally, the growing shortage of supply, coupled with high demand, suggests that price increases will persist. Two-bedroom homes are now the most sought after, while four-bedroom homes have been relegated to a smaller segment of the market.
In this context, a phenomenon that has been observed is the reduction in the average size of available homes in southeast Madrid. Currently, the average size of new constructions has decreased by 17% since 2015, dropping from 119 sqm to 99 sqm.
In conclusion, southeast Madrid is experiencing a period of unprecedented transformation and revaluation. The rise in prices reflects not only an increase in interest in the area but also a catalyst that has led to urban improvements and the development of key infrastructure, which is increasingly attracting the attention of buyers and real estate investors.