The fourth edition of the DIZA Market Report reveals that the luxury residential market in Madrid is becoming more expensive: in nine of the twenty prime areas analysed, a budget of one million euros no longer allows for the purchase of a typical home.
Buying a luxury home in Madrid has become an odyssey even for those with seven-figure incomes. The fourth DIZA Market Report, prepared by DIZA Consultores and corresponding to the second quarter of 2026, confirms that the prime market in the capital is raising its entry barriers quarter after quarter.
The DIZA IAR accessibility index, which measures the ease of acquiring a typical home in the luxury segment, continues to deteriorate. With a reference budget of one million euros, it is no longer possible to buy an average home in nine of the twenty prime areas analysed. This figure highlights how high-end real estate has tightened its conditions even for buyers with significant financial capacity.
Price increases and declining transactions: the paradox of luxury
The report reveals an apparent contradiction that confirms the strength of the segment. During the second quarter of 2026, the average price per square metre increased by 3.2% compared to the previous quarter, while the number of sales accumulated over the last twelve months fell by 7.3%.
This combination indicates that the market is not adjusting prices to stimulate demand. On the contrary, the decline in transactions is due to greater selectivity on the part of buyers, while the scarcity of quality supply and the high solvency of demand continue to support market values.
For the Madrid resident dreaming of moving to a prime area, the news is bittersweet: prices will not drop in the short term, and the available supply is shrinking more and more.
La Moraleja, the paradigm of exclusivity
Among all the areas analysed, La Moraleja stands out for recording the lowest level of accessibility in the study. The report indicates that the average sale price in this area increased by 45.4% during the first half of 2026, positioning it as one of the most exclusive markets in Madrid and reinforcing its appeal to high-net-worth buyers.
This behaviour demonstrates that, in the luxury segment, the price per square metre alone does not explain the evolution of the market. The size of the homes and the average value of transactions also have a decisive impact on accessibility. Those looking for a home in La Moraleja will need a budget significantly higher than one million euros.
National and international buyers: two separate worlds
Another of the most interesting conclusions of the study is the growing segmentation of demand. On one hand, the metropolitan municipalities and intermediate prime areas continue to be dominated by national buyers, who are more sensitive to the final price, financing, and economic trends.
On the other hand, ultra-prime locations, such as Recoletos or La Moraleja, are consolidating an ever-increasing presence of international buyers, who now account for over 31% of demand in both areas. This differentiation is shaping two clearly distinct market dynamics: a high-end residential market primarily oriented towards national buyers, and a wealth management market driven by international capital, where the preservation of wealth, stability, and location exclusivity weigh more heavily.
For the Madrilenian seeking a home in areas like Chamberí or Salamanca, competition with foreign investors is intensifying, and affordable options are dwindling.
The report concludes that Madrid reaffirms its role as a safe haven asset, but at the cost of becoming an increasingly exclusive market. For real estate professionals, the scenario demands specialization and knowledge of an increasingly demanding client. For the local buyer, the recommendation is clear: if they have one million euros, they should carefully consider the areas; in nine of them, that money is no longer enough for an average home.
