Just two minutes from the Retiro, one of Madrid’s largest parks, luxury shopping, and the heart of the capital city, Salamanca is a quiet, but upscale neighborhood offering chic dining options, historic architecture, and prime luxury real estate.
In Salamanca, "the Calle de Serrano, Calle de Goya, and Calle de Velásquez are considered some of the most expensive, most exclusive streets in the entire city of Madrid," said Mari Cruz López, senior sales consultant for Lucas Fox International Properties.
Wide streets lined with ornate façades are steeped in 19th-century opulence, offering exceptional amenities, great accessibility, and affluent cachet. Ms. López noted that particularly on the west side of Salamanca, in the Recoletos and Castellana barrios, "many buildings have beautiful, delicate façades," and were built during the 19th-century extension of the city of Madrid that was overseen by the Marqués de Salamanca, by whose name the neighborhood is now known. Salamanca has been compared to New York’s Upper East Side, and its Calle de Serrano, thanks to its luxury stores, has been dubbed the "Golden Mile."
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Mark Harvey, head of the Spanish Department for Knight Frank and the author of a recent overview on the real estate market in Spain, also noted that the scarcity of new construction "has kept Madrid’s property values relatively stable in recent years." In the past two years, several new developments have been started, especially in Recoletos, the barrio in the southwest part of Salamanca. "The most demand is there, and that’s where the most units are available," Ms. López said.
Mr. Harvey said that Spain’s economic recovery in the past two years is particularly reflected in Madrid’s market. International demand, particularly from Latin America, is fueled not only by the view that the Eurozone is a safe destination for investors, but also because of the desirability of neighborhoods like Salamanca as a place to relocate. Salamanca is not just seen as an advantageous area to raise families, however; Ms. López notes the sophisticated atmosphere of the neighborhood.
Boundaries
Right in the center of Madrid, Salamanca is one of 21 districts (distritos) that make up Spain’s capital. The neighborhood is bordered on the west by the Paseo de Recoletos and the Paseo de la Castellana, the Calle de María de Molina and the Avenida de América to the north, and the Avendia de la Paz to the east. Salamanca’s southern boundaries are the Calle de O’Donnell and the Calle de Alcalá, which runs along the northern edge of the Retiro.
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Price range
In Madrid, the most in-demand prime properties fall between €1 million and €3 million (US$1.2 million and $US3.5 million), and typical prime prices range from €5,000 to €7,000 (US$5,800-US$8,000) per square meter, according to Kate Everett-Allen of Knight Frank. "Salamanca is the area with the highest prices per square meter in Madrid," Ms. López explained. And €5,000 per square meter represents a 10.38% increase over just the past year, according to Lucas Fox.
Ms. Lopez added that a fully renovated penthouse apartment averages €9,000 to €10,000 (US$10,400-$US11,600) per square meter. Currently available properties are listed for prices as high as €4.6 million (US$5.4 million).
Housing stock
As in many metropolitan neighborhoods, there are "only apartments and penthouses," Ms. López said, "no villas or houses with garden courtyards. The west side is where there are more historical buildings, large-size properties," with high ceilings and impressive windows.
"Some have really great potential to be renovated, and they’re stunning if they’ve already been renovated," she said, adding that in Salamanca, "the majority of buildings are protected, so developers must conserve façades, even the staircases," Ms. López said. But the interiors can be completely renovated, which creates a really interesting combination of modern and classic styles."
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What makes it unique
Salamanca is known for its large apartments in historical buildings, and its reputation as an elite enclave has made the neighborhood exceedingly popular "amongst international clients, as well as local people already living in Madrid," Ms. López said. Its aristocratic façades lining wide, clean avenues, and its proximity to the Retiro afford an unparalleled quality of life in the Spanish capital.
Salamanca is prized for being well connected to Madrid’s business district, while its well-planned, beautiful square blocks are lined with homes whose quality is superior to much of what’s found in the city center.
Home to several embassies, Salamanca also offers exceptional primary and secondary schools, including Nuestra Señora del Pilar, the Reina Victoria Eugenia, and the Colegio Calasancio de Madrid, as well as one of the best business schools in the world, the IE Business School (formerly the Instituto de Empresa). "The international schools, especially the great, quality schools on the west side [of Salamanca] offer education in several languages—not just English and Spanish, but French and German as well," Ms. Lopez said.
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Luxury amenities
Much quieter than other prime neighborhoods of Madrid, Salamanca is minutes away from the aforementioned Retiro park.
The neighborhood offers luxury shopping from the likes of Versace, Hermès, Louis Vuitton and Chanel, as well as fine restaurants, including four of Madrid’s 14 Michelin-starred restaurants: Ramón Freixa Madrid, Kabuki Wellington, Álbora, and Punto MX.
Salamanca is also home to the Museo Arqueológico Nacional, which shares the roof of Spain’s National Library, as well as the Juan March Foundation, which produces intimate art exhibitions and hosts concert and lecture series. The world-famous Prado museum and the Palacio de Cristal in the Retiro are also just a few minutes away.
Who lives there
Since the 19th century, Salamanca has attracted Spain’s financial and political elite, having been deliberately created by the Marqués de Salamanca as an enclave for the capital’s aristocracy and wealthy bourgeoisie. Over the years, many famous artists, writers, and scholars have called Salamanca’s cultural center and living space Residencia de Estudiantes home, including Salvador Dalí, filmmaker Luis Bruñuel, composer Manuel de Falla, and philosopher José Ortega y Gasset, for whom a street in Salamanca is named.
Today, around 70% of prime property searches in Madrid center around Salamanca, Jerónimos, and Chamberí, according to Ms. Everett-Allen, while Mr. Harvey reported that 70% of buyers are Spanish.
Ms. López noted that outside Spain, "the buyers Salamanca is attracting the most are coming from South America, mainly from Venezuela and Argentina. When clients come to Madrid, they are very clear they want Salamanca."
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Outlook
Currently, "properties are selling very quickly," said Ms López. She said she expects the speed in which they sell to increase. Inventory, especially for homes that don’t need extensive renovations, is low, she said.
Ms. López and Mr. Harvey agree that it is a seller’s market in Salamanca now, given its limited housing stock and the neighborhood’s unrivaled desirability, and the trend is expected to continue at least through the next two to three years.