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Madrid Real Estate News 2020

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Written by Daniella

When the new year has begun, there are always certain questions that occupy our minds, questions that are related to real estate. Will there be less housing available in 2020? Is the real estate bubble going to burst this year?

In this article by ShMadrid we will try to shine a little light on some of Madrid’s most important real estate news for 2020. Are you interested? Grab a pen and paper and start taking notes!

Related article: 3 Errors That Can Affect Selling Your Property

Lesser-known Madrid real estate news for 2020

building construction site

Photo via Pixabay

If you hadn’t heard yet, it looks like Madrid has surpassed the city of Barcelona with respect to price increases for renting and buying property.

Currently, the Madrid real estate market is quite strained, and this has come just after the sector in Barcelona started recovering from the stress it has been under for several years. It is now Madrid’s turn to experience huge price increases.

Studies predict that real estate prices will continue to rise in the rest of Spain, although sales transactions will also increase, but they will do so at a slower pace.

Certain aspects, though, are leading us to believe that the real estate market will remain strong in 2020: low-interest rates, economic stability, employment growth, an increase in minimum wages, etcetera.

The real estate market will keep playing an important role in 2020. Young buyers are searching for their first home, and they demand new constructions by property developers, so they have to dare to take the leap. These activities hadn’t been very successful in 2019, but they did, however, exceed the previous year’s activities. It is expected that this will happen again in 2020.

Rental property prices keep increasing in Madrid, although the coalition government (PSOE and Podemos) has now committed to finally setting price limits. People have been waiting for this much needed change for a while now, but real estate companies are not too keen, because they are expecting a negative effect on the availability of rental properties. So as we have started the new year, this is one uncertainty that has not yet been dealt with.

Related article: Advantages of Buying a Renovated Apartment in Madrid

signing document with keys to new home

Photo via Pixabay

The good news is that all the signs are not pointing towards a new recession any time soon. So in general, there is nothing to be concerned about, as experts say we are far from facing another real estate crisis.

It rather seems like this year, after the crisis we experienced a few years ago, will actually be bringing us normalization and stabilization. In addition to this, specialists are convinced Spain will continue to be a safe country for certain foreign investors (like Mexicans and Venezuelans).

It could still be that housing prices will rise between 3 and 4% in 2020 – compared to the previous year – and this percentage is closely related to new salaries. But as real estate prices have started to reach their maximum, you could also see prices drop a little in Madrid, so some areas in the capital could be subject to price changes.

If you are wondering if this is the right moment to buy or invest in real estate, then analysts have indicated that things haven’t really changed compared to the previous year. Price speculations don’t make much sense anyway right now, because prices will not decrease, and if they do, it will only be slightly and not significantly. So the best time to buy or invest truly depends on people’s needs, their budget and the type of real estate they are interested in.

If you are looking to buy a home, please consider the fact that the Euribor (the Euro Interbank Offered Rate) is still negative, and that the European Central Bank will only be allowing for prices and interest rates to increase slightly, making the first months of 2020 the best time to buy a home.

Is there other real estate news about Madrid for 2020?

About the author


Daniella loves to write and translate. Her bucket list is filled with beautiful places she still needs to visit.

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