Madrid real estate prices and rents projected to rise through 2026

Real estate prices and rental costs in Madrid are projected to rise significantly through 2026. According to the Madrid Association of Real Estate Companies (AMADEI), residential purchase prices in the capital are expected to grow by approximately 5% annually, while the metropolitan area could see increases of up to 8%. Rental prices are forecasted to rise even more sharply, with estimated increases of 7% in the city and 10% in the surrounding metropolitan area.

In the commercial sector, a shortage of high-quality office space is also driving costs upward. A report by Cushman & Wakefield indicates that the deficit of ‘prime’ office spaces in Madrid is expected to triple before 2028. Currently, the availability of Grade A office buildings is extremely low, at approximately 0.5%. Consequently, prime office rents, which have already risen 14% since 2023, are projected to increase by an additional 4% to 5% between late 2026 and 2028.