According to the latest Savills Prime Residential World Cities Index, Madrid, Barcelona and Lisbon are expected to be among the cities recording the strongest luxury property price growth in the second half of 2026. Analysts forecast increases of 2–3.9% in these prime residential markets.
The study examines luxury residential property trends in 30 leading cities worldwide, covering ultra-prime, established luxury and emerging prime market segments.
During the first half of 2026, prime residential prices rose by an average of 0.6% globally, against a backdrop of geopolitical uncertainty, slowing economic growth and increasingly uneven performance across markets.
Madrid and Barcelona Outperform Global Luxury Property Price Growth
Despite subdued growth across the global market, Madrid and Barcelona continue to strengthen their positions in the international luxury property sector.
In the first half of 2026, prime residential price growth reached:
- Madrid – 2.4%.
- Barcelona – 1.5%.
- Average across 30 global cities – 0.6%.
Both Spanish cities therefore outperformed the global average, reflecting resilient demand for high-quality residential property.
Savills notes that although worldwide price growth has slowed compared with the strongest periods of previous years, the overall trend remains positive. Luxury residential property continues to demonstrate resilience, supported by limited supply and the financial strength of buyers, even amid international economic uncertainty.
How Much Does Luxury Property Cost in Madrid and Barcelona?
According to the market estimates presented, average prime residential property prices stand at €11,700/m² in Madrid and €9,600/m² in Barcelona.
For comparison, average values in other major international luxury property markets reach:
- Paris – €19,000/m².
- London – €18,200/m².
- New York – €25,000/m².
- Geneva – €26,300/m².
Despite continued price increases, Madrid and Barcelona therefore remain considerably more affordable on these measures than some of the world’s most established luxury property destinations.
Madrid: High-End Property Prices Reach €25,000/m²
In Madrid’s most exclusive residential segment, average luxury property prices range from €15,000 to €18,000/m².
Several new developments are expected to enter the market in some of the Spanish capital’s most prestigious neighbourhoods over the coming months, with prices potentially reaching approximately €25,000/m².
Another notable trend is the growing number of properties priced above €6 million. Compared with previous years, the supply of homes in this price bracket is becoming more extensive.
This points to further development of Madrid’s upper-tier luxury market, catering to affluent domestic and international buyers.
For more information on the capital’s most prestigious neighbourhoods, read our article Where Spain’s Most Expensive Homes Are Located.
Barcelona: Exclusive New-Build Homes Priced at €15,000–18,000/m²
In Barcelona’s prime residential market, average prices in the upper luxury segment range from €10,000 to €12,000/m².
Prices for exceptional newly built properties in the city’s most prestigious locations can reach €15,000–18,000/m².
Two particularly sought-after areas stand out:
- Passeig de Gràcia – one of Barcelona’s most prestigious avenues, renowned for its historic architecture and exclusive homes.
- Turó Park – one of the city’s most expensive residential neighbourhoods, highly sought after by luxury property buyers.
Analysts expect prices to continue rising steadily in the second half of 2026. Although transaction volumes may decline, deal values remain high and buyer interest in exceptional properties persists.
Savills Forecast: Luxury Property Prices Through the End of 2026
According to Savills, Madrid and Barcelona are among the cities where prime residential prices could rise by 2–3.9% in the second half of 2026.
Lisbon and several major Asian markets, including Singapore, Seoul and Kuala Lumpur, are also included in this growth category.
The main drivers remain a shortage of high-quality properties and steady demand from domestic and international buyers.
The strongest price increase in the second half of the year is forecast for Cape Town, South Africa, where Savills expects prime residential values to rise by 4–5.9%.
Meanwhile, global luxury residential markets are becoming increasingly fragmented. Unlike previous cycles, when prices in many major cities tended to move in the same direction, performance in the coming months is expected to depend more heavily on local factors.
Limited supply, international demand, new wealth creation and the appeal of individual cities as places to live and invest will all play an important role.
Madrid and Barcelona therefore remain among Europe’s more dynamic luxury residential markets, while Lisbon continues to stand out thanks to limited supply and resilient buyer demand.
