Property of Centro, Madrid

Centro is the central district of the Spanish capital. It is the oldest of 21 Madrid’s districts. Let’s find out, what property is situated here.

Centro is officially divided into six quarters: Palacio, Embajadores, Cortes, Justicia, Universidad and Sol. But tourists know better the other names: Malasaña barrio, Chueca, Los Austrias, Barrio de las letras, La Latina, Conde Duque, Lavapiés, Salesas.

The development of Centro, Madrid

It is the most ancient part of the city. The first mentions of a stable village are dated back to the Muslim period. Then, in the second half of the 9th century, on the territory where now is located the Royal Palace the Emir of Cordoba Mohammed I (852-886) founded a fortress.

The Sierra de Guadarrama was the starting point for raids against the northern Christian kingdoms. Some parts of the ancient wall are still conserved. A small suburban territory named Madrich or Maherit developed next to the fortress to the east.

In 1085 the village passed into the hands of Christians and flourished. It received the title of a city in 1123. One of the most important events for the development of Madrid was establishment of the court in 1561 by the king Felipe II. Most of the oldest monuments in the quarter of Madrid de los Austria have been built since that time.

From the Age of Enlightenment, Madrid grew beyond the boundaries of the Central district, but new monuments, for example the Royal Palace or the Cibeles Fountain, appeared right here. The Bourbons, especially Carlos III, invested in infrastructure, sewers, and public buildings to make Madrid look as European city, taking Paris as an example.

Streets and quarters of Centro, Madrid

Centro is full of monuments of 17-19 centuries and museums, and also shops, theatres, bars, restaurants and open terraces. It’s a beautiful and inspiring place both for tourists and locals. In Gran Via – Madrid’s Broadway – there are many shops and brands.

If you want to buy a special souvenir visit Chueca. If you decide to buy the apartment here be ready to have a noisy neighbourhood from Friday to Sunday and during all summertime (from April to October). In the middle of June, the Pride Parade takes place here, it’s a curious event, but not everyone would like it.

Another “alternative” place for walking and visiting cafes and restaurants is the Malasaña barrio quarter. In the 1980s, it was the area of the “movida madrileña” – a non-conformist movement appeared  the first years after dictator Franco’s death. The nightlife here is still in full swing.

To taste a delicious meal go to the Huertas quarter. Many restaurants with cuisines from all provinces of Spain and all over of the world are located here. All in all prices are very reasonable. As can be seen, Madrid is the most democratic capital in the world.

The famous El Rastro bazaar is located in the Lavapiés quarter. Here you can find everything: authentic souvenirs, as well as Chinese cheap staff, jeans for 5 euros, and antiques. It is a very curious place. But don’t forget to keep your wallet safe!

Features of housing construction in the Centro, Madrid

This area includes buildings of the XVI-XX centuries. In due time most of the monuments from the Bourbons and Austrian House periods became the government institutions’ offices. Buildings of lesser importance, originally revenue houses, were constructed of brick, adobe or stone.

From the 17th century builders used, instead of brick, various “carcass”  (a mixture of wood, adobe and even gypsum). The structural elements consisted mainly of wooden beams with holes called “barracks”. In fact these holes were filled with masonry (rubble). At the end of the 19th century, the brick came back and remained a common housing material for the Centro throughout the 20th century.

Construction quality is very important when buying a home. Thermal insulation is not a whim in a city, where in summer the temperature can rise to 45 degrees, and in winter  it can drop to -14. Therefore, it is important to consider not only materials, but also construction technology. The walls of some houses were made with 1,5 bricks masonry. But this is not always enough for this climate. The windows are often only one glass thick, so you will have neither soundproofing nor thermal insulation. In summary: if you decide to buy a property here, take an apartment for reconstruction and make all the necessary insulation types.

By the way, the aesthetic side is also important. In Centro you can find buildings in different styles: Italian baroque, neo-modernism, neoclassicism, purely Madrid Mudejar and the modern style of the 70s of the XX century. Thus, apartments in the area can be spacious, with high ceilings and French windows, or look like slum. The price of the apartment is also depended on the architectural style of the house.

Property prices in Centro, ​​Madrid

What are the prices in this district? How have they changed since the start of Covid? The average price per square meter is currently 4840 euros. Compared to January 2020, the price fell by 5%. Prices for Lavapiés and Embajadores fell to -7.1%. At the same time the Palacio neighbourhood (near the Royal Palace) was the least affected with a -1.7% drop in prices.

Prices and percentage changes you can observe in the table, which was prepared by Idealista.

Is it profitable to buy an apartment in the Centre ? Let’s take a look.

For example, we want to buy an unfinished apartment of 65 square meters in the Lavapiés area, on Santa Isabel street. It costs 280,000 euros. It has 4 rooms and is situated the 3rd floor without an elevator. Renting an apartment of 62 sq.m. on the 5th floor without an elevator in the same area costs 850 euros. What is the profitability of this property? Just 2.46%, with a PER at 32 years. However, if you have inherited the property – enjoy! But I would not recommend buying it.

Snezhana Reznikova