A more selective prime market and a breather from Euribor

Mid-July offers a clear picture of the Madrid market: fewer transactions, firm prices and financing that is starting to ease. Three points worth keeping in mind if you are considering buying, selling or investing in prime residential property.

Madrid's luxury market becomes more selective

According to the Diza Market report on Madrid's prime market (Fotocasa), luxury home sales fell 7.3% in the second quarter compared with the previous one across the twenty areas analysed, while prices rose 3.2%. Buyers have become more demanding and transactions are taking longer: scarce quality supply and record prices explain a market that is slowing its pace without correcting. One figure illustrates the growing exclusivity: in nine of the twenty prime areas, a budget of one million euros no longer buys the typical home for that market — a year ago it was only four — and in enclaves such as Recoletos and La Moraleja more than 31% of buyers are international. The honest reading: well-priced product keeps selling; product that is not, waits.

July Euribor at its lowest level since April

Twelve-month Euribor is moving through July with a monthly average around 2.72%, below the 2.80% at which June closed and at its lowest level since April (Euribor Diario, Rankia). Annual reviews of variable-rate mortgages still come out slightly higher than a year ago, but the trend of recent months points clearly downwards. The next reference point for financing will be the European Central Bank meeting on 23 July.

The industry expects a calmer half-year, with no price correction

The 24th Real Estate Barometer by UCI and SIRA, based on the views of 433 industry professionals, anticipates a moderation in activity over the second half of the year: sales would fall 3.27% year-on-year, with prices rising around 3.15% across 2026 as a whole (idealista/news, Infobae). These are professional forecasts rather than closed figures, but they agree on the diagnosis: fewer transactions and sustained prices, because the imbalance between solid demand and scarce supply continues to set the tone.