Madrid

The capital since 1561

According to the Museo de Historia de Madrid, in 1561 Philip II made the Villa the permanent seat of the Court, which increased the population and prompted Philip II's city wall to delimit the city. Around 1656 the Alcázar and Plaza Mayor were remodelled and the Buen Retiro Palace and gardens were built, and a new wall, Philip IV's, kept the urban limits well into the 19th century.

From the New Palace to the Ensanche

Around 1800 Madrid was still inside the wall, with small extensions and monumental gates; the Palacio Nuevo was raised and the Paseo del Prado urban project was undertaken. The 19th century brought major modernisation: demolitions linked to the confiscations of church property, the disappearance of Philip IV's wall, the remodelling of the Puerta del Sol, the Castro Plan Ensanche and the arrival of the railway.

Linear City, Gran Vía and annexations

In the early 20th century the Ciudad Lineal was built to Arturo Soria's project and the Gran Vía was created. Late in the century Madrid went beyond the Ensanche limits, and between 1948 and 1956 nearby towns were annexed and merged into its urban fabric.

What it means for buyers and sellers

• In July 2026 it is the 4th of the 32 municipalities analysed by median closing price.
• The municipal figure is the median for the whole city: each district's runs from about 3,000 to over 8,500 €/m², so always compare with homes in the same district and neighbourhood.

Source for the historical context: Madrid City Council (Museo de Historia, urban evolution of the Villa).

Data and statistics

In July 2026, the median price of completed sales in the municipality of Madrid was €4,757/m². Since January (€4,571/m²), the figure rose in 5 of the 6 months that can be compared with the previous one, without a steady climb.

July is the highest of the 2026 figures published (€4,757/m²); the lowest is February (€4,429/m²). The report publishes no figure for the period August to December 2025; those months have not been estimated.

The report publishes a year-on-year change of +11.1% and a year-to-date change of +4.1%, with €4,283/m² in July 2025 as the prior-year starting point. They compare medians of different transactions in each period, not the change in value of the same home.

For reference, the July figure is above the one published for the province as a whole (€3,618/m²). These are medians for each area, not averages of the areas they contain.

This guide describes the figure for the area, not an individual home: valuing a property requires comparing similar homes. The report does not say how many transactions underlie each territorial median.

Source of the statistics: Huspy Market Insights · Madrid, October 2026 edition. Completed sales, median in €/m²; not asking or rental prices. The edition date is not the data date.