Madrid Property Prices, Rents & Rental Yields

About Madrid

Madrid brings together the Prado Museum, Retiro Park and neighbourhood squares, with national rail links converging in Spain’s capital. For apartment investors, that setting provides useful context, but the investment case rests on the numbers.

In October 2026, the clearest signal for Madrid apartments is that rents have risen faster than sale prices over the past year. Average rent is up 11.4% year over year, against a 5.3% increase in the average sale price. That difference is the central investment tension: stronger rental pricing may support income projections, while a higher purchase price still sets the capital needed to enter.

The average apartment sale price now stands at €473,950, and the reported yield is 5.57%. Those figures should be read together rather than as a promise that a particular purchase will deliver the market average. Faster rent growth offers a reason to revisit underwriting, but the yield remains a snapshot. It does not show how acquisition costs, operating expenses or an individual apartment’s rent will affect an investor’s result.

For this month’s location assessment, the useful question is therefore not simply whether rental income is moving up. It is whether an apartment’s asking price and achievable rent leave enough room for the return an investor requires. Madrid’s annual changes show rents rising faster than sale prices, while the current yield provides a reference point, not a substitute for calculating returns on a specific property.