HOUSE PRICES IN SOUTHEAST MADRID RISE BY UP TO 9% IN THE LAST SIX MONTHS
19 Aug 2024
- Berrocales leads the increase with an increase of 8.40%
- El Cañaveral has registered an increase of 148% in the last eight years, consolidating its position as a high demand residential area.
House prices in Southeast Madrid have increased by between 4 and 9% in the first six months of 2024. The neighbourhood with the highest increase is Berrocales followed by El Cañaveral. This is the result of the latest studies carried out by Activum Real Estate, with more than 25 years of experience in the real estate sector.
The market analysis, which covers 25 middle-floor multi-family housing developments, shows a sustained upward trend in several areas, driven by high demand and the consolidation of residential areas such as El Cañaveral.
According to the report, the homogeneous unit prices per square metre have increased as follows:
- VallecasThe price rose from €3,547/m² in January 2024 to €3,709/m² in July 2024, representing an increase of 4.60%.
- BerrocalesIn this area, the price rose from €2,960/m² to €3,209/m².2 during the first half of 2024, an increase of 8.40%.
- AhijonesThe price rose from €3,112/m² to €3,288/m² in the same period, marking an increase of 5.70%.
- CanaveralThe price increased from €3,266/m² in January 2024 to €3,471/m² in July 2024, showing an increase of 6.30%.
El Cañaveral on the rise: The impact of price growth in the region
Particularly noteworthy is the case of El Cañaveral, where the price of free housing has shot up by a further 148% in the last eight years. The average price reached €3,138/m² by the end of 2023, compared to €1,265/m² in 2015. This increase reflects the high demand and consolidation of the area as a leading residential area.
In addition, the average price of homes in absolute terms is around €300,000, with some three-bedroom homes approaching €350,000 and four-bedroom homes exceeding €450,000. The supply of free housing in El Cañaveral has decreased due to the consolidation of the neighbourhood, going from over 2,000 units for sale between 2019 and 2020 to less than 900 units last year.
The neighbourhood has stood out not only for its price growth, but also for its consolidation as a well-connected residential area with continuous infrastructure development. This area, together with other developments in the southeast of Madrid, demonstrates the growing demand and added value of these areas in the real estate market.
Trends in the housing market in the South East of Madrid
There has been a reduction in the average size of available dwellings, both in terms of floor area and number of rooms. The average floor area has decreased by 17% over the last eight years, from 119 m² in 2015 to 99 m² today. This change is due to a preference for two-bedroom dwellings as prices continue to rise, relegating four-bedroom dwellings to a marginal share.
