Aguirre Newman Profiles Madrid’s Newest Homes

26 October 2015 – El Mundo

After seven years of continuous decreases, the prices of new homes for sale in Madrid (capital) are on the rise once again. Specifically, they have increased by 8.96% with respect to last year. Or at least, that is one of the findings of a report prepared by the consultancy Aguirre Newman, which studied homes for sale in 242 (unsubsidised) new developments (excluding cooperatives and homeowner associations) in the capital (149) and the Community of Madrid’s 23 main municipalities (122), between July and September 2015. According to the study, this increase is due to the price rises recorded in the most exclusive areas of the centre and north of the city, where demand is highest.

The capital

The report describes the profile of the average new home for sale in the municipality of Madrid: it has a surface area of 109 m2 and a final price of €320,405, i.e. costs €2,937/m2.

The most expensive developments are located in the neighbourhoods of Almagro (Chamberí), El Viso (Chamartín), La Piovera (Hortaleza), Goya and Castellana (Salamanca) and Justicia (Centro), where average prices currently range between €6,500/m2 and €7,000/m2. At the other end of the scale, the cheapest homes in Madrid are found in the districts of Villaverde, Villa de Vallecas and Carabanchel, with average prices of between €1,600/m2 and €1,800/m2.

Another important statistic reflected in the study is that the volume of new homes purchased in Madrid increased by 3% during the first half of 2015, in comparison with the same period last year. Specifically, 1,411 new homes were sold between January and June 2015. This rate of sales is associated with a significant decrease in the average sales periods, which, for a 60-home development have decreased to 17.2 months from 33.2 months last year. (…).

Other municipalities

In contrast to the capital, in the metropolitan area, the average price per m2 of high-rise homes (flats) decreased by 3.46% to €2,310/m2, well below the peak of 2009 (€3,367/m2). Sales in this area also decreased during H1 2015, by 13% with respect to those recorded during the same period in 2014.

The profile of the average home being sold in these municipalities has an average surface area of 130 m2 and a final price of €300,000. In the case of detached homes, the average price is €1,895/m2 with an average surface area that increases to 275m2.

The municipalities located along the A-1 and A-6 motorways are the most expensive, both in terms of multi-family homes and single family homes. Pozuelo de Alarcón is the most expensive town of all, where the average price of flats reaches €3,944/m2 and of detached homes reaches €3,123/m2. At the other end of the spectrum, the municipalities with the cheapest new homes for sale are Móstoles and Pinto, where flats cost no more than €1,400/m2 and detached homes cost €1,000/m2, almost three times less than in Pozuelo de Alarcón.


Aguirre Newman considers that in the areas with the greatest level of activity in the centre and north of the city, where demand is greatest and continuing to grow, prices of new developments will increase by 5% over the next 12 months; whilst in the least popular areas, prices will continue to decrease, although at a more moderate rate than before (by around -5%).

Aguirre Newman also believes that the rate of sales of the new projects that are coming onto the market will continue to be high, “and that most, if not all, homes will be sold off-plan”. (…).

Original story: El Mundo (by Luis M. De Ciria)

Translation: Carmel Drake

Ministry of Development: Housing Permits Up By 27% YoY

30 September 2015 – El Economista

According to the latest information from the Ministry of Development, the number of permits granted by the college of technical architects for the construction of homes shot up by 27.5% during the first seven months of the year to 28,870, the best figure recorded during that period since 2011.

Housing permits started the year (2015) with an increase of 37% to 3,466 in January. In February, the YoY growth rate shot up to 57%, before decreasing in March by 13.5%. In April, the number of permits increased again by 50%, then by 22% in May, 48% in June and 12% in July.

This growth in the number of permits comes after a slight increase (0.003%) was recorded during 2014 to 34,873, the first rise in the construction sector indicator after seven years of decreases.

Despite the increase recorded during the 7 months to July, the total number of housing permits still falls well below the maximums registered in 2006, during the height of the boom in the real estate sector, when 496,071 permits were issued during the first seven months of the year, 94% more than this year.

New builds, renovations and extensions

The total number of permits granted for new builds, renovations and extensions during the seven months to July was 45,345, which represents an increase of 20.3% with respect to 2014.

By type of property, permits to construct blocks of housing increased by 31% (to 20,184 licences), whilst the number of permits for detached homes rose by 19% to 8,671.

In terms of surface area, the average size of detached homes was 202 m2, whilst the average size of flats was 112 m2.

The number of housing permits began to decrease in 2007, when it fell by 24.8%, since when the downwards trend continued to record its lowest ever annual figure last year.

Since the Ministry of Development began compiling these statistics in 1991, the number of permits reached its historical minimum in August last year, when just 1,585 permits were granted. The historical maximum was recorded in September 2006, with 126,753 permits granted.

Original story: El Economista

Translation: Carmel Drake