Housing prices in Madrid’s residential towns have been rising for many years, driven by high demand and increasingly scarce supply. While it is true that price increases have stabilized in recent months, there are three municipalities in Madrid that are approaching the maximum level of the real estate bubble, which reached its peak in 2007 (when financial institutions issued mortgages with ease). This is the situation in Las Rozas, Pozuelo de Alarcón and Majadahonda, three of the richest cities in the province and also in the country.
The former is just -2.6% off boom levels, the latter is 2.8% off, and the latter is 4% off, according to Tinsa data for the first quarter of the year. Alcobendas, Rivas Vaciamadrid and the capital Madrid are located nearby, at -8% distance from these highs. Against, The cities furthest from the bubble level are Parla (37.3%), San Fernando de Henares (31.8%) and Coslada (-28.5%)..
In general, bedroom towns tend to attract a working population seeking a balance between cost and quality of life. However, in the case of the province of Madrid, some of its localities have particularly high per capita incomes and house prices are higher than the national average. This is the case with Pozuelo de Alarcón, whose price reaches 3,734 euros/m2 per unit., which is higher than the level of Madrid, located at 3722 euros/m2. They are followed by Alcobendas (3616 euros/m2), Majadahonda (3551 euros/m2), Las Rozas (3163 euros/m2) and San Sebastian de los Reyes (3080 euros/m2).
On the other hand, the most affordable municipalities in Madrid to buy a house are those located in the south and east of the province. The list is topped by Parla (1667 euros/m2), followed by Fuenlabrada (1975 euros/m2), Móstoles (2056 euros/m2), San Fernando de Henares (2068 euros/m2) and Alcalá de Henares (2109 euro/m2). ).
Globally, buying and selling prices in the province of Madrid rose 2.3% year-on-year in the first quarter of the year and decreased by a modest 0.2% compared to the previous three months. “In most municipalities there is a clear downward trend, although in most cases the fluctuations continue above the values of the first quarter.“, notes Tinsa’s analysis. In particular, it highlights the steady growth rates (and even small impulses) in San Sebastian de los Reyes, Getafe, Rivas Vaciamadrid, Pozuelo, Alcobendas and Fuenlabrada. At the opposite end, the decline stands out from San Fernando de Henares (-1.3%).
Great effort
Rising prices, rising mortgage prices and the loss of purchasing power of citizens mean that access to housing is becoming increasingly narrower. The assessor’s data confirms that household efforts to gain access to a home remain “high” in all municipalities studied, covering a range from 51.4% in the capital Madrid to 27.7% in Pozuelo de Alarcón.
“In 15 of the 17 municipalities, accessibility exceeds 35%, and in five – above 45%, which is considered critical accessibility,” the company notes. The latter group, in addition to Madrid, includes San Sebastian de los Reyes (46.5%), Getafe and Leganes (both 45.1%).
Translation
The shift in demand from the capital to the suburbs has intensified in recent years due to the high cost of houses in Madrid, as well as changes in consumer preferences. Proof of the high interest that the cities bordering Madrid attract is that even Five municipalities of the capital topped the population rating with the greatest demand pressure
on the supply of houses for sale in the last period of last year.
The data comes from a study published by the portal Idealista, which analyzes almost 120 municipalities that are part of the main housing markets, those with large supply in provincial capitals and municipalities throughout the country.
The capital itself and other peripheral cities such as Las Rozas, Mostoles, Getafe or Alcala de Henares occupy the first positions in the classification corresponding to the last quarter of the year, and are accompanied by other prominent capitals such as Valencia, Pamplona, Santa Cruz de Tenerife or Las Palmas de Gran Canaria, as stated in the report.
In this case, Las Rozas de Madrid (€590,200) overtook the city of Madrid (€458,800) as the municipality with the highest relative sales demand. The first five positions in this demand ranking are completed by Mostoles (213,900 euros) and Alcala de Henares (212,500 euros), as well as Getafe (232,900 euros).
Real estate network Century 21 predicts that demand in the Madrid metropolitan area will continue to rise, as will prices. “There are many families who cannot afford to buy a house in the capital and are looking around., so demand pressure continues to increase. Moreover, these buyers have greater economic potential than the families who already live in these areas,” explains Ricardo Souza, CEO of Century 21 Spain and Portugal. In this context, the manager emphasizes that in recent years there has been “strong public and private investment” in restoration and construction, which has increased the value of municipalities.
What’s happening in Barcelona?
The situation in the province of Barcelona is similar to Madrid, although prices in bedroom towns are not as close to property bubble levels as in the capital. In particular, the municipalities of the first ring are those that are closest to the maximum values. The closest is Sant Cugat del Vallès, at -12% distance, followed by Barcelona (-14.6%), Castelldefels (-16.3%) and Mongat (-16.5%).
On the other hand, the most distant municipalities are Manresa (-41.6%), Santa Coloma de Gramanet (-38.8%) and Sabadell (-33.8%). The municipality with the highest unit value in the entire province of Barcelona is the capital.It is followed by the municipalities of the first crown with a price of 3,701 euros/m2, with Sant Cugat del Vallès in the lead (3,103 euros/m2). At a similar level are Castelldefels (2988 euros/m2), Mongat (2845 euros/m2) and Sant Just Desvern (2827 euros/m2). The lowest prices are in Mansehra (1450 euros/m2).
Buying a home in the Barcelona metropolitan area costs 2.6% more than a year ago, although prices are down a modest -0.1% compared to the first quarter of 2023. Regarding the pace of attempts to gain access to housing, 23 municipalities have exceeded the recommended maximum, and five are in a critical situation: the capital of Barcelona, Cornella de Llobregat, L’Hospitalet de Llobregat, Sant Adria de Besos and Mongat/ Masnow.