Villages and small towns around Madrid: the new housing frontier
As prices rise and supply tightens in Madrid, the surrounding villages and small towns are becoming an increasingly credible alternative.
You’ll find there:
- larger homes for an equivalent budget,
- better air quality and more green spaces,
- a calmer environment without giving up city-centre services,
- genuine local life, with markets, traditional festivals and a strong community fabric.
This trend, already well underway, is accelerating thanks to new transport infrastructure, public policies for revitalisation and the appetite of international buyers for Castilian landscapes. 😊
In the capital itself, sought-after properties have now reached high levels: on Green-Acres, which specialises in second homes, the average budget for requested properties in Madrid is around €923,000 for 141 m². This mechanically increases the appeal of the peri-urban ring for buyers in search of space.
Some “dormitory towns” are turning into residential hubs: strong demand
Around Madrid, several municipalities long seen as mere “dormitory towns” are becoming genuine residential hubs.
In practice, this translates into:
- controlled densification of existing neighbourhoods,
- the emergence of new, higher-quality residential developments,
- an increased supply of schools, shops and local services,
- a richer cultural life (events, cultural centres, sports facilities).
For a buyer, these localities offer a double advantage.
First, they make it possible to access properties better suited to current needs (terrace, an extra room for remote work, outdoor spaces). Second, they benefit from strong rental demand, driven by:
- young professionals working in Madrid,
- families looking for larger homes,
- students and young couples attracted by a lower cost of living.
Result: even though prices have already risen there, the potential for appreciation remains attractive, particularly in municipalities well connected by suburban trains (Cercanías), intercity buses and major road arteries.
For investors, international dynamics also play a role: data from Green-Acres for the Madrid region show, for example, particularly strong foreign demand from the United States (18% of foreign enquiries), France (12%) and from the United Kingdom, Hong Kong and Italy (7% each).
This clientele, willing to pay more for a good level of services and connectivity, helps support property values in well-served peripheral areas.
Massive urban projects in the outskirts: opportunity for first-time buyers
Regional and local authorities are heavily betting on the outskirts to absorb Madrid’s population growth.
We are seeing large-scale urban development projects in several areas:
- creation of new planned residential districts,
- development of mixed-use zones (housing, offices, shops),
- extensions of metro, train or high-capacity bus lines,
- investment in schools, health centres and sports facilities.
For first-time buyers, these emerging neighbourhoods can be an opportunity.
The main advantages:
- launch prices often lower than in established neighbourhoods,
- new-build homes meeting the latest energy standards,
- financing plans sometimes combined with subsidies or favourable conditions,
- medium-term appreciation prospects, in step with the area’s move upmarket.
However, it is essential to:
- carefully analyse the delivery schedule for homes and infrastructure,
- check the developers’ financial strength and project quality,
- compare with alternatives in already-established villages.
A clear-eyed approach helps distinguish between structuring projects – where future quality of life is real – and over-planned areas where demand is slow to materialise.
Heritage, property and valued rural living
Beyond fast-growing towns, many villages around Madrid are banking on their historical heritage and rural identity to attract new residents.
These localities capitalise on:
- their traditional Castilian architecture,
- their arcaded squares, churches, convents and palaces,
- proximity to natural landscapes (vineyards, olive groves, the Tagus River, rolling hills),
- a slower pace of life marked by the seasons.
For anyone planning a lifestyle change, these are settings where it is possible to combine remote work, local roots and quick getaways to Madrid.
Historic towns like Chinchón and Aranjuez are strengthening their residential appeal
Emblematic municipalities such as Chinchón and Aranjuez perfectly illustrate this trend.
Long associated with day-trip tourism, they are now seeing the development of:
- village-house renovation projects,
- the conversion of former mansions into main residences,
- a gradual influx of new residents, both Spanish and international,
- a more varied retail offering (cafés, restaurants, shops, informal coworking spaces).
These historic towns offer multiple advantages:
- a monumental setting (royal palace and gardens in Aranjuez, circular Plaza Mayor in Chinchón),
- a rich cultural offering (festivals, traditional celebrations, markets),
- decent road and rail links to Madrid,
- a varied property stock: period apartments, village houses, small properties with gardens.
For a buyer, the challenge is to find the right balance between:
- tourist traffic (heavier at weekends and in high season),
- the need for everyday peace and quiet,
- services available year-round (healthcare, schools, shops).
This often means visiting at different times: weekday, weekend, winter, summer… in order to get a feel for the village’s true atmosphere.
Rural revitalisation laws and renovation aid in areas close to Madrid
The renewed interest in villages near Madrid does not come solely from the market.
It is also fuelled by public policies aimed at:
- tackling rural depopulation,
- bringing historic centres back to life,
- encouraging energy-efficient renovation of the existing housing stock.
In practice, this can take the form of:
- renovation grants to improve insulation, replace windows or modernise installations,
- tax incentives in certain revitalisation areas,
- programmes designed to facilitate the settlement of new residents (families, remote workers, entrepreneurs).
For an investor or future resident, it becomes strategic to:
- find out about the schemes available at regional (Community of Madrid) and local level,
- check whether the targeted property is eligible for subsidies,
- factor these potential aids into the overall financing plan.
A village house in need of work, well located in an area supported by public programmes, can therefore become a far more affordable project than it may seem at first glance.
Second homes or main residences: what to choose for 2026?
By 2026, the key question for many buyers around Madrid will be to define the intended use of their property.
Main residence on the outskirts, with regular trips into the centre? Or a second home with a hybrid purpose (leisure, remote work, occasional short-term rental)?
The choice will depend on several variables:
- your working pattern (on-site, hybrid, remote),
- the need for daily access to the capital’s services,
- your tolerance for commuting time,
- your wealth-building and rental objectives.
Lower budgets outside the urban core, but rapidly rising prices
Historically, moving away from Madrid made it possible to secure significantly lower prices.
This is still true, but the gap has narrowed with rising demand in certain attractive municipalities.
Overall, we are seeing:
- more affordable budgets for houses with gardens or larger apartments,
- upward pressure on prices in the best-connected and most touristy villages,
- growing interest from foreign buyers, contributing to price appreciation.
The international profiles most present on the Madrid market – Americans, French, British, but also buyers from Italy or Hong Kong according to aggregated Green-Acres data – first position themselves in the capital and then, faced with high prices, turn to well-connected peripheral municipalities, which in turn drives up values in these areas.
For 2026, several scenarios are plausible:
- continuation of price increases in “star” municipalities (good transport + quality of life + services),
- gradual catch-up in still-affordable but well-located villages,
- more marked segmentation between highly sought-after areas and those left on the sidelines.
In this context, a few cautious principles can guide your strategy:
- do not base your decision solely on the potential for quick capital gains,
- first choose a place where you can genuinely see yourself living or spending time,
- keep financial leeway for renovation, furnishing and unexpected costs,
- also assess the local rental market if you plan to let the property (year-round or seasonally).
A slightly more distant but high-quality property may, over time, prove a better choice than an overpriced apartment in a trendy municipality.
Improved services and easier mobility to central Madrid
The key criterion for turning a village or small town into a real option for a main residence remains the connection to Madrid.
In recent years, significant progress has been made:
- improved frequencies on suburban train lines,
- express bus routes to major employment hubs,
- road upgrades easing access in and out of the capital,
- development of park-and-ride facilities, cycle paths and car-sharing services.
These developments make it possible to imagine a lifestyle combining:
- working part of the time in central Madrid,
- remote work several days a week from a greener environment,
- family life rooted in a quieter village.
At the same time, local services are being strengthened around Madrid:
- new schools and nurseries,
- local health centres or clinics,
- a more comprehensive retail offer (supermarkets, independent shops, farmers’ markets),
- more modern sports and cultural facilities.
This makes it realistically possible to live there year-round without being entirely dependent on the capital for every need.
Before buying, however, it is wise to:
- test journeys at different times (rush hour, evening, weekend),
- check future transport projects announced by the region,
- talk to local residents to understand day-to-day reality.
By combining this information with your own constraints (work, children’s schooling, lifestyle), you will be able to decide more clearly between a main or second home around Madrid.
