New houses and developments in Comunidad de Madrid

New developments in Madrid

The province of Madrid currently has over 600 new housing developments and accounts for 23% of the national market for new construction, followed by Malaga and Barcelona. More than 300 projects are underway in the capital alone. The average price per square meter is around €3,800 throughout the province of Madrid. The highest prices are found in the most popular and in-demand districts of the capital, such as Salamanca, Chamberí, and Retiro, where luxury new construction homes prevail and prices hover around €5,000,000. These prices become more affordable the further away from the city centre you go. This is the case in towns such as Villaviciosa de Odón, where the average price is €1,700/m2, or Móstoles, which is around €2,000/m2. These costs increase in the more popular municipalities, such as Alcorcón, Boadilla del Monte, Galapagar, or Collado Villalba, where prices exceed €3,000/m2.

Which municipalities have the highest number of new housing construction?

Currently, the municipalities with the highest supply in the province of Madrid are:

• In the northwest area of the community: Boadilla del Monte, Pozuelo de Alarcón, Las Rozas, Collado Villalba, Majadahonda, and Villaviciosa de Odón.
• In the north: San Sebastián de los Reyes, Colmenar Viejo, and Alcobendas.
• In the southern area of the community: Getafe, Valdemoro, Alcorcón, Móstoles, Parla, Pinto, and Leganés. I
• n the so-called Corredor del Henares: Alcalá de Henares, Torrejón de Ardoz, Meco, Coslada, and Loeches.

The main projects are focused on the metropolitan area of the capital. Some of the most important projects are:

• Madrid Nuevo Norte. This colossal development, considered the largest urban project in Europe, began at the beginning of 2021. It involves the creation of more than 3 million m2 to the north of the Chamartín district. A total of 10,500 homes will be built, and the first ones are expected to be delivered by 2026.
• El Cañaveral. This is one of the fastest-growing neighbourhoods in Madrid. It has around 14,000 homes projected, and more than 6,000 have already been delivered. The main attraction for buyers is that it has much more affordable prices than the Madrid Nuevo Norte project. In this development, apartments, ground-floor homes with gardens, and penthouses are the main types of housing.

What influences the price of new construction in the Community of Madrid?

Mainly, the price per square meter of a new construction promotion in the Community of Madrid depends on the supply and demand ratio. According to recent studies on the real estate market, the demand for this type of property is very high, but there are not enough homes to meet it, mainly due to the shortage of developable land.

The price of materials also plays a role, as they have increased considerably in recent years and continue to rise today. In addition to the above, general factors come into play, such as the location of the properties, their size, the materials used for construction, or the finishes. The value will also depend on the services and facilities that the property offers since the main buyers of new construction in Madrid are looking for open spaces, especially gardens, pools, and terraces.

Of course, it is necessary to consider whether the property is independent or part of a community of neighbours. In the first case, the maintenance of the property and facilities is the exclusive responsibility of the buyer, while in the case of being part of a community of neighbours, the maintenance of the common services is a communal expense.

How is the new development real estate market in the province of Madrid?

The main projects can be found in the city of Madrid itself, which is growing in all directions and has a supply of new construction in almost all of its peripheral districts, especially in the northwest, north, south, and the so-called Henares Corridor.

It is worth noting the urban development taking place in the so-called Southeast Strategy with El Cañaveral and its wide availability of new homes. Thanks to it, the district of Vicálvaro is considered the new expansion area of Madrid. Together with the ambitious Madrid Nuevo Norte project, whose total execution period will be approximately 24 years, all this development will lead to a significant increase in the real estate market in the capital of Spain in the coming years.

What are the most important aspects of new versus second-hand houses in the province of Madrid?

According to the 2021 "Profile of new home buyers" report by Fotocasa, the main reason for investing in new homes, especially for young people buying their first homes, is not having to carry out renovations. The second reason is energy efficiency, which is very relevant for current buyers as it leads to cost savings.

It is also important to note that in recent years buyers are looking for homes that offer facilities and common areas that enhance their quality of life, and promoters are taking this into account when designing new buildings. Therefore, it is not difficult to find promotions that offer green areas, spaces for sports, or swimming pools, which increase the value of these homes.

Where to buy new properties in Madrid?

In the Madrid region, the focus has been on the expansion of the metropolitan area of the capital. Therefore, the largest amount of new construction projects can be found around the M-30 motorway.

However, we can also find new homes, although with much less supply, in other areas of Madrid. The highest volume is in the Corredor del Henares area, in towns such as Torrejón de Ardoz, Alcalá de Henares, or Coslada, where prices range from €150,000 to €500,000. In this area, vertical construction predominates, although we also find developments of single-family homes.

The southern area follows, with towns such as Getafe, Móstoles, or Valdemoro. Prices for apartments, penthouses, and duplexes start at €200,000 and can reach almost €600,000, as is the case in Getafe. As for horizontal construction, the largest supply is found in Valdemoro, and prices are around €350,000.

In the northwest area of the Madrid region, most of the new developments are located in Pozuelo de Alarcón, one of the most expensive areas in Madrid. The price range for vertical constructions starts at €290,000 and exceeds €1,500,000. In the case of detached homes, prices range from €770,000 to €1,200,000.