Madrid or Barcelona: Where do clients of luxury flats prefer to live?

Barcelona and Madrid are probably the 2 most important Spanish cities. Both have a historical rivalry that goes from business to football. True, they have substantial differences in terms of geography, population and way of life. However, there is one thing that unites them both and that is that they are the target of many buyers looking for luxury flats.

The lack of available land for housing construction is a common issue in both cities. And it is even more accentuated if you are looking for luxury or high-end homes. The supply tends to be located in a handful of neighbourhoods and streets. Madrid’s famous Golden Mile in the Salamanca district or the Sarrià-Gervasi and Pedralbes neighbourhoods in Barcelona account for most of the supply.

In addition to these classic areas, in recent years we are witnessing new emerging areas in Barcelona and Madrid. Businesses, restaurants and all kinds of services seeking exclusive clients are being established in these sectors.

Buyers of luxury flats tend to consider possibilities in both cities. The decision of where to settle may determine the location and the final price of the property. In addition, clients tend to consider other variables when buying.

The lifestyle, the cultural and gastronomic offer, the educational centres and the climate have a direct influence on their decision. Where to buy luxury flats, in Madrid or in Barcelona?

When a national or foreign buyer decides to buy a luxury flat in Madrid or Barcelona, they usually do so for 2 reasons. Firstly, because they want to settle in one of the 2 cities. The move to the city may be for work or family reasons and they need a place to live according to their status. Secondly, and no less important, buying a luxury flat in Madrid or Barcelona is an investment for the future.

Expanding your wealth is always a good decision. Luxury homes are safe-haven assets and provide a good hedge against inflation. Moreover, luxury never goes out of fashion and there are always clients looking for this type of high-end product.

Luxury flats always appreciate in value, as economic studies show. In 2022, in the city of Barcelona, the price of luxury flats increased by 1.6%. For its part, in Madrid the increase was 2.2%.

On the other hand, Barcelona and Madrid always appear on the list of cities where the price of luxury housing is increasing the most. The table is led by Dubai and Singapore with percentages of around 7%. Madrid is in 9th place and Barcelona in 10th place, behind European capitals such as Milan, Paris and Rome.

Thus, the data makes it clear that the purchase of luxury flats in Madrid and Barcelona is an economic operation that can bring future benefits.

Barcelona, the capital of Catalonia, is a city of 1.6 million inhabitants and 101 km2. Geographically it is located between the Mediterranean Sea and the Collserola mountain range and is situated in the northeast of the Iberian Peninsula. It has a Mediterranean climate with hot summers and mild winters. When drought periods allow, it has an average of 90 days of rain per year.

Madrid is the capital city of Spain and is located in the centre of the Iberian Peninsula. It has a population of 3.3 million and covers an area of 605 km2. Madrid has a slightly colder climate than Barcelona in winter but less humid. Summers are also very hot. It is crossed by the Manzanares river and to the north is the famous Sierra de Madrid.

Barcelona is a city whose urban planning is divided into 10 different districts. From the sea to the mountains, the Catalan capital has a varied offer in the real estate sector. However, as far as luxury flats are concerned, the offer is concentrated in the districts of Eixample and Sarrià-Sant Gervasi with their corresponding Barcelona neighbourhoods.

In the Eixample is the essential Passeig de Gràcia, where some of the city’s architectural gems can be found. La Pedrera and Casa Batlló are located on this avenue, which has some of the greatest examples of Modernisme. Some of Barcelona’s most spectacular luxury flats can be found on this street. It is also the area where the most important fashion brands such as Louis Vuitton, Channel and Bulgari have their shops.

In the Sarrià-Sant Gervasi district, the high standing offer includes modern penthouses with swimming pool and exceptional views over the Mediterranean Sea. These properties are equipped with the latest technology and amenities. In addition, the neighbourhood offers privacy and a range of shops in keeping with the status of the area’s inhabitants.

In the same district, the neighbourhoods of Tres Torres and Bonanova are home to some of the most beautiful modernist houses and mansions in the city. They also tend to be a luxury housing option that is highly sought after by clients. The properties have history on the façade and the interior is equipped with every comfort.

Finally, the district of Pedralbes, located in the upper area of Barcelona, has a good offer of luxury flats. Most of them are flats or panoramic penthouses with extraordinary views. You can also find modern houses with full home automation.

Madrid is a larger city than Barcelona and has a total of 21 districts. Each one of them has its respective neighbourhoods ranging from 4 to 8 depending on the size of the district.

Without a doubt, the luxury district par excellence in Madrid is Salamanca. This area is home to Madrid’s famous Golden Mile, where all the luxury fashion shops are located. In the Recoletos district, buyers of luxury flats are mainly foreigners. They are attracted by the fashion and luxury on offer and buy the property as a holiday home. Meanwhile, in the same district of Salamanca, but in the neighbourhood of Goya, there is a mix of foreign and national clients. Prices in this area are somewhat lower than in Recoletos.

In the Chamberí district, we find the Almagro neighbourhood. Buyers of luxury flats opt for the classic buildings found in the area. These are buildings that are years old and have stately façades. It is easy to find foreigners who have been in the capital for a while and already know the city.

If we move to the Trafalgar district, the luxury flats available are somewhat larger. The foyers of the properties are regal and the properties have more open-plan spaces.

In the Centro district is the Justicia neighbourhood, which in recent years has become one of the areas with the highest demand for luxury flats. It is known as Madrid’s Soho and its streets are home to independent professionals, artists and young managers. It is a little livelier than the Salamanca district and prices are similar to those of Recoletos.

Finally, in the Chamartín district, the El Viso neighbourhood attracts national and foreign buyers in equal measure. It is highly sought after by families with children because there is a wide range of schools on offer. In addition, the houses and flats are larger and more open-plan.

The supply of luxury flats in Barcelona tends to range from 150 to 300 m2. It is true that due to the high demand and the scarcity of land, many of the sales are made off plan or even on site.

In Barcelona, in recent years there has been an increase in sales because domestic demand has increased. It has also been influenced by the fact that tourists who visit the city decide to invest in it and buy a property of high standing. Prices tend to be somewhat lower than in other southern European capitals and more mortgages are being granted. British and Scandinavian buyers have increased significantly.

Barcelona has a good climate and also has a beach, something that Madrid lacks. The number of inhabitants is smaller and the city council has worked to make the city more citizen-friendly. It has opted for the “superilles“, which are pedestrian and traffic-free zones in the city centre. Green areas have also been increased and the bike lane that runs through the city is now close to 300 km.

On the other hand, it is a world-renowned business city. The European Union considers it the 5th best ecosystem to create a startup because it is geographically located and very well communicated. The volume of this sector is more than 19 billion euros. In this sense, technology giants such as Tesla, Microsoft, Fujitsu, Amazon, Google and Meta have built headquarters in Barcelona. The city’s technological power and value is beyond doubt.

The supply of high-end properties in Madrid is also in the 150 to 300 m2 range. Among foreign buyers, Mexicans and Colombians are the ones who have invested the most.

The Spanish capital is home to the headquarters of most of the companies listed on the Ibex 35. It also has large government buildings such as ministries, the Senate and the Congress of Deputies. All this makes it easy for many high-ranking officials to look for luxury flats in Madrid or nearby towns.

Madrid is a European capital with a wide range of museums where the triangle formed by El Prado, the Thyssen and the Reina Sofía is a must-see. It is also the European capital of musicals, with London’s permission, and has a wide range of shows, music and dance.

Undoubtedly, the green area of El Retiro Park acts as the lungs of this great city. It is an ideal place for strolling, playing sports or enjoying time with the family. The Madrid of the Austrias with the Plaza Mayor, the Opera and the Royal Palace competes with that of the Bourbons, which includes the Paseo del Prado and the Retiro Park.