Investing in Madrid: 12 €/m²/month in rent and 3.4% gross yield
Buying in Madrid costs 4,197 €/m² on average and renting goes for 12 €/m² a month, leaving a gross yield of 3.4% before costs and taxes. It sits well below the Spanish average (4.2%), with purchase prices above the Spanish average.
The map of Madrid
Its municipalities, coloured by gross yield. Grey ones publish too little data.
Administrative boundaries from the Spanish National Geographic Institute (CC BY 4.0). The Canary Islands are drawn shifted, as on any map of Spain.
What the analysis sees
The specific signals the official data leaves about this market, before going into detail.
Madrid has 7,137,031 residents, an average gross household income of €40,572 a year, an approximate unemployment rate of 8% (below the Spanish average). These are signals of how deep housing demand runs, not of the risk of any one tenant.
In favour
- Momentum 68/100Appraised prices, rents, transactions and population are all rising in the latest data.
- Net migration of 16‰More people arrive than leave, above the Spanish average: sustained housing demand.
- Approximate unemployment of 8%A stronger labour market than the Spanish average, measured on registered unemployed and contributors.
- 1,724 properties analysedWe hold stock for sale here, each with its own investment score.
Against
- Gross yield of 3.4%Below the Spanish average (4.2%): here you buy for capital growth rather than for rent.
- 2.6 transactions per 1,000 residentsAn illiquid market: expect longer selling times.
- Rent burden of 32%Renting a 90 m² home takes that share of gross household income; above 30% there is limited room for rents to rise.
What it costs and what it earns
The market level in Madrid and what it means for a buy-to-let buyer. Per-m² figures are converted to a reference home of 90 m².
Within Madrid municipalities sit on average 27% away from that figure: real dispersion between local markets, not the estimate's margin of error. Drill down to a municipality to see its own.
Expensive or profitable
Each municipality with enough data placed by what it costs to buy and what it earns. Top left is cheap and profitable; bottom right is expensive and earns little.
Where it stands against the rest
Madrid's percentile among the 52 provinces, computed on the same figure for all of them.
Within Comunidad de Madrid it ranks 1 of 1 on gross yield.
Demand, employment and liquidity
The structural depth of the market: how many people live here, what they earn, how much changes hands and what stress it carries. This is market context, never a measure of tenant risk.
Housing repossessions
A figure the INE only publishes per province: how many urban dwellings end in repossession, against the total stock. It measures market stress, not tenant risk.
The municipalities of Madrid
The 40 most populated with their market level; the remaining 139 are linked below.
The rest of the municipalities of Madrid
What is for sale in Madrid
Our catalogue in this territory, with an investment score computed property by property.
How this page is calculated
Where each figure comes from, over which territory and from what date. Confidence measures data coverage, never investment quality.
Data coverage
100/100Madrid covers 179 municipalities. Every figure is computed by summing or population-weighting those municipalities, never by averaging their percentages.
- official rent series (SERPAVI) 32 of 179
- series sufficient to measure momentum 178 of 179
- official appraised value (MIVAU) 28 of 179
- estimated market level 171 of 179
- our own adverts 126 of 179
When each figure is from
For an aggregate we show the oldest figure from each source, since that is what limits how the whole can be read.
- rent
- 2024
- sale
- 2024
- household income
- 2023
- official appraisal
- 2026Q1
- population register
- 2025
- registered transactions
- 2026Q1
- registered unemployment
- 2026M06
An indicative statistical estimate for comparing markets, not an appraisal or an investment recommendation. Gross yield does not deduct costs, IBI, insurance, voids or taxes.