Madrid’s Rising Property Prices Threaten a Housing-Market Crunch
- Spanish capital bucks trend of sliding prices in other cities
- Impact of tight supply is also evident in London, Stockholm
Madrid home prices are rising in contrast to most other major cities in Europe, a sign of a housing crunch that adds to the headwinds facing Prime Minister Pedro Sanchez’s bid for reelection.
Residential real estate prices in Madrid climbed 4.9% in May from a year ago, according to data from Idealista and the latest Bloomberg City Tracker. Rising interest rates and declining consumer spending power have led to declines in five out of the eight cities monitored by the measure of urban housing markets, but housing shortages in cities like Madrid are keeping pressure on the market.