Third Quarter Real Estate Summary in Spain

Madrid City Council Approves Ambitious Plan for 2025

The Madrid City Council has approved an ambitious plan for 2025 with a budget of €748 million aimed at improving urban infrastructure and public spaces. Among the most notable projects are the undergrounding of the final stretch of Paseo de la Castellana and the covering of the M-30 at Ventas, each with an investment of €30 million. These initiatives aim to close urban gaps, promote pedestrian mobility, and transform strategic areas of the city.

The Real Estate Market Makes a Strong Comeback

September 2024 marked a turning point in the Spanish real estate market, with a 12.5% increase in home sales, reaching 55,033 transactions. This dynamism was also reflected in the average price per square meter, which grew by 4.2% year-on-year to €1,757. These figures demonstrate sustained recovery driven by increased confidence in the sector and greater economic activity.

According to the National Statistics Institute, the real estate sector experienced a 41.5% rise in property transactions in September 2024, recording 61,887 sales — a figure not seen since 2007. This rebound is primarily attributed to lower interest rates, which have facilitated access to mortgage financing, creating a more favorable environment for buyers and sellers.

Key Projects for Madrid's Urban Development

In addition to the projects at Castellana and Ventas, the municipal budget includes the rehabilitation of the Legazpi Fruit and Vegetable Market, which will house offices and neighborhood services, as well as a new lecture hall in the Comprehensive Training Center for Security and Emergencies. These actions are part of the Madrid Capital 21 Plan, which envisions 96 new facilities by 2027, with 64 already completed, reaffirming the City Council's commitment to urban development.

The synergy between Madrid’s urban transformation plans and the growth of the real estate market reveals an optimistic outlook. While the city reinvents itself with key projects to improve quality of life, the real estate sector capitalizes on favorable economic conditions to solidify its recovery. This balance between public investment and private dynamism projects a promising future for Madrid and its economic environment.