What is the price of real estate in the heart of Madrid?
This posting starts series The Districts of Madrid. I am going to tell you about all the districts of the capital of Spain. What are they interesting for? What are their advantages? Are they attractive for investments? So, let’s start with the most luxurious district-Salamanca.
Synonym to luxury
Barrio-de- Salamanca is the synonym to luxury and high purchasing power. The area, which is situated in the center of the city, was built in the second part of the 19-th century and got its name from its great patron marquis Salamanca. It was marquis Salamanca who suggested to build the district with perpendicular and elegant streets.
Nowadays Salamanca district consists of La Guindalera, Lista, Castellana, Recoletos, Goya and Fuente del Berro.
Initially this district was founded for living of aristocratic and the richest families of prosperous Madrid society. Today the golden age is revealed through such locations as Golden Mile. It is the part of Serrano Street from the intersection with Goya Street to Alcala Gate (Puerta de Alcalá). You can find here shops of the most prestigious clothing and shoes brands, jewelry stores, elegant buildings, museums and parks. However, Salamanca is much more than just luxury and high-end shopping.
Palaces, museums, stores and places like Plaza de Colón are full of surprises that you cannot miss. By the way, the houses here were the first in Madrid, which had bathrooms and running water.
Pleasant bonuses
Salamanca is not only worth visiting. Living here is real pleasure. Moreover, it is more real that you can imagine.
Salamanca district is an urban area. Former palaces were turned into apartment complexes. You can also find former revenue houses. The owner of such house lived with his family on the first floor, all other floors were occupied by the renters. That’s why the main format of real estate here is apartments.
As the district was built in the 19-th century high ceilings, French windows in the floor, fretwork, threaded balconies, spacious halls with gardens and fountains are inevitable and pleasant bonuses to the apartments. Another nice distinguishing feature is that there is a concierge, who opens the doors and can help you carrying the shopping in many houses.
Who will appreciate?
Despite the schools and kindergartens, I can’t say that the district is good for young families with little children. I would recommend it to families with teenagers. For all members of the family to appreciate it.
There are a number of private clinics and hospitals there, supermarkets, restaurants, summer terraces, exclusive markets with vegetables and fruit, fresh meat and fish.
You can make sure here, good taste and manners are revealed through the cuisine. One can enjoy Michelin stars restaurants. If you like orient cuisine I would recommend you Kabuki Wellington (Calle Velázquez). More affordable, but not less interesting is Platea (Calle Goya 5). This gastronomic space is situated in antique cinema and is one of the most picturesque places of Madrid. It is a collection of restaurants with live performances. It occupies 3 stores and 6000 square meters.
One more characteristic feature. Crime rate in the district is the lowest in the city. Because of the high prices, that is a respectable neighborhood.
Prices
What are the prices? Have they changed during the pandemic of COVID -19?
The average price is 5740 EURO for square meter. Comparing with December 19 the price dropped 2,3%. Prices and percentage changes you can observe in the table, which was prepared by Idealista.
| Location | Price m2 dec 2020 | Annual var- iation |
Histo- rical max |
Max vari- ation |
| Salamanca | 5740 | -2,3% | 5986 | -4,1% |
| Castellana | 6935 | -2,6% | 7120 | -2,6% |
| Fuente del Berro | 4524 | +0,9% | 4702 | -3,8% |
| Goya | 5556 | -6,2% | 5970 | -6,9% |
| La Guindalera | 4092 | -4,9% | 4439 | -7,8% |
| Lista | 5810 | +2,9% | 5991 | -3,0% |
| Recoletos | 8429 | +0,2% | 8652 | 0,0% |
Investments in real estate
You see Salamanca district is the most luxurious and attractive area in Madrid. If you ask me if it is worth investing, I would counter with my own question: What is the aim?
Do you want apartments to your family? Then choose property in Goya area. The prices here dropped in 2020 most of all. Nevertheless, it’s a wonderful place to live in. Do you want to invest? You can try Goya as well to sell it in 3-5 years with 6% profit.
Do you want to buy and then rent out it? Cost effectiveness of the purchase and its further renting is low in the area. For example, 2 room apartments (in Spain only bedrooms are considered to be rooms, but there is always a living-room which is never called “a room”) in Goya area, 60square meters, overlooking courtyard, on the 3-rd floor costs 345000EURO. You can lease it for 1000Euro per month. The profitability is only 2, 54% with PER index of 31 years. It’s a very bad investment, just a whim