New houses and developments in Madrid
New developments in Madrid
The city of Madrid currently has more than 300 new development projects, including those already completed and those in progress. It is the city with the largest number of new homes in Spain, followed by Malaga and Barcelona. Prices for these types of properties in the country's capital vary widely, with the most affordable starting at €105,000 and the most expensive reaching €9,000,000.
The highest values per square meter can be found in the most popular and in-demand districts, such as Salamanca (over €6,000/m2), followed by Chamberí and Chamartín (both around €5,500/m2). These values become more affordable the further away from the city centre we go, with the lowest values found in the southern area of the city, such as Villaverde (€1,700/m2) and Puente de Vallecas (€1,900/m2).
Which districts have the main new development projects?
The district currently showing the strongest growth in these properties is Vicálvaro (50 new projects). It is followed by Hortaleza and Moncloa-Aravaca (both with around 30 new projects). Other areas with a significant volume of new developments are Chamberí, Fuencarral-El Pardo, Tetuán, and the Madrid-Río area.
What factors influence the price of new developments in Madrid?
Primarily, the cost per square meter (m²) of a new construction project in Madrid depends on the relationship between supply and demand. According to recent studies on the real estate market, demand is very high for new homes, but there aren't enough properties to meet it. This is mainly due to the scarcity of developable land.
Other factors that come into play include the cost of materials, which have increased considerably in recent years and continue to rise with the unstoppable increase in raw materials. Of course, general factors such as the location of the properties, their size, the materials used in construction, finishes, and common areas also play a role. Price also depends on the services and facilities offered by the property, as buyers mainly look for open spaces, especially gardens, pools, and terraces.
In addition, it's important to consider whether the property is independent or part of a community of neighbours. In the former case, both maintenance of the property and its facilities are solely the buyer's responsibility. Whereas, being part of a community of neighbours, maintenance of common services is a communal expense and therefore shared.
What is the situation of the new construction real estate market in Madrid?
In general, the price of this type of property in the Spanish capital has decreased in recent years, but seven districts were the exception: Vicálvaro, Centro, Chamberí, La Latina, Fuencarral-El Pardo, Chamartín, and Salamanca. The areas where prices have dropped the most are Moratalaz, Usera, and Moncloa-Aravaca.
Currently, the city of Madrid is growing in all directions and has new construction offerings in almost all of its peripheral districts, especially in the northwest, north, south, and the so-called Corredor del Henares. It's worth highlighting the urban development that's taking place in the so-called Southeast Strategy with El Cañaveral and its wide availability of properties. Thanks to this, the district of Vicálvaro is considered the new expansion zone of the municipality.
This is in addition to the ambitious Madrid Nuevo Norte project, which will take about 24 years to complete. All of this development will lead to a significant increase in the new construction real estate market in the coming years.
What is the importance of buying new build developments compared to second-hand properties in Madrid?
According to the report "New Build Buyer Profile in 2021" by Fotocasa, the main reason for investing in new build properties is the absence of renovation work needed. Close behind is the factor of energy efficiency, which is very relevant to current buyers as it implies long-term cost savings.
It's also worth considering that in recent years, the average buyer looks for properties that offer facilities and common areas that increase their quality of life. This is taken into consideration by developers when designing new properties. Therefore, it's not difficult to find developments that offer green areas, spaces to practice sports or swimming pools, which increases the value of these properties.
Where to buy new developments in Madrid?
The main new build projects in Madrid are focused on the metropolitan area of the capital. These include:
This is one of the fastest-growing neighbourhoods with around 14,000 homes planned, and more than 6,000 have already been delivered. It has a total of 40 developments, concentrating the largest stock of new properties in the capital. The main attraction for buyers is that it has more affordable prices than other current projects, with a price per square meter ranging from €2,500 to €3,000.
The properties mainly consist of apartments, ground-floor apartments with gardens and penthouses. The majority of properties in multi-family buildings have 3 bedrooms and an approximate surface area of 120 square meters, with an average price of around €310,000. As for single-family houses, prices start from €425,000. The average profile of the buyer is young people between 25 and 40 years old, with or without a partner, looking to buy their first property in areas with green spaces.
Madrid Nuevo Norte.
This is colossal development, considered the largest urban project in Europe. It involves the creation of more than 3 million square meters in the north of the Chamartín district. A total of 10,500 homes will be built in an environment that will have 3 metro stations, a new commuter station, and an impressive central park of more than 10 hectares.
In this immense project, called "Operation Chamartín" and promoted by the Distrito Castellana Norte company, residential buildings are combined with offices and commercial properties. The first urban phase is planned to begin between 2023 and 2024, and the first homes to be delivered by 2026.
Behind these two major projects, the Valdebebas and San Chinarro areas have the most development activity. These are two districts in Madrid where new construction is highly sought after, as they prioritize urbanization with magnificent common areas.