Published on and written by Cyril Jarnias
Located southwest of Madrid, about nine miles from Puerta del Sol, Leganés has established itself in just a few decades as one of the most interesting real estate markets in the Madrid suburbs. A city of over 190,000 residents, well-connected, with a diversified economy and prices still significantly lower than those in the capital, it attracts families, students, young professionals, and investors seeking returns alike.
Facing a saturated and expensive Madrid market, Leganés offers an interesting rental investment with good yields, capital appreciation potential, and a pleasant living environment. However, a thorough analysis of neighborhoods, prices, and current tax regulations is essential for a successful project.
A dynamic but still affordable real estate market
Leganés is an integral part of the Madrid metropolitan area. Historically a commuter town, it has developed its own industrial zones, shopping centers, and public services since the 1980s. The result: a more self-sufficient local economy, a relatively moderate unemployment rate, and housing demand driven as much by Madrid as by local jobs.
The average price per square meter in the city is estimated at €3,000, according to observed upward trends.
| Property Type | Average Price 2022 (€/m²) | Average Price 2023 (€/m²) | Average Price 2024 (€/m²) | Average Price 2025 (€/m²) | Average Price 2026 (€/m²) | Increase 2022‑2026 |
|---|---|---|---|---|---|---|
| Houses | 2,226.32 | 2,406.14 | 2,712.56 | 3,017.35 | 3,150.92 | ≈ +41.6% |
| Apartments | 2,514.86 | 2,689.26 | 3,030.12 | 3,487.85 | 3,650.30 | ≈ +45.1% |
These figures show sustained growth, with annual increases often in double digits. Between 2022 and 2026, residential real estate in Leganés appreciated by over 40%, confirming the medium-term capital appreciation potential.
Meanwhile, data from online listings for August 2025 confirm this upward trend:
| Indicator (August 2025) | Value |
|---|---|
| Average sale price (listings) | €2,596/m² |
| Annual change (Aug 2024 → Aug 2025) | +23.27% |
| Average rent (listings) | €12.49/m²/month |
| Annual change in rents | +2.71% |
| Sale low point (Dec 2023) | €2,028/m² |
| Rent low point (Jan 2024) | €10.65/m²/month |
The message is clear: investors entering the market today are joining an already rising phase, but still far from Madrid peaks. It is this gap with the capital that constitutes a large part of Leganés’s appeal.
Why Leganés attracts investors
Several structural factors explain the growing interest in real estate investment in Leganés.
First, the cost of living is lower than in central Madrid, and property prices remain significantly below those of central neighborhoods like Salamanca or Chamberí, where prices easily exceed €8,000–10,000/m². At the same time, wages and job opportunities remain buoyed by proximity to the capital, supporting households’ ability to pay rent.
Leganés benefits from excellent transport links: direct access to the M-40 and M-45 highways, Leganés Central metro station (Line 12/MetroSur), Cercanías commuter rail (Line C5), and a dense bus network. Trips to central Madrid are generally under 30 minutes, with high frequencies during peak hours. This accessibility is a key driver of residential demand.
Finally, Leganés offers a balanced living environment: large parks like Polvoranca and Butarque, modern sports facilities, shopping centers such as Parquesur, the Severo Ochoa University Hospital, the presence of Carlos III University. For a tenant, this means being able to live in a complete city, less dense than Madrid, while staying connected to the capital’s jobs and leisure.
Sustained rental demand: students, families, and young professionals
One of the strengths of Leganés for a rental investor is the diversity of demand. The report highlights three main drivers.
On one hand, Carlos III University and other training centers generate a constant flow of students looking for rooms, studios, or small apartments close to campuses or transport stations. Concrete examples show that investors buying renovated one-bedroom apartments near the university achieve very high occupancy rates and returns above regional averages.
Industrial zones, logistics areas, and the large Severo Ochoa Hospital generate strong rental demand from employees and temporary workers seeking proximity to their workplace. The announcement of a new logistics hub in the city is identified as a future additional catalyst for housing demand.
Finally, many Madrid families and young professionals are turning to Leganés to buy or rent a home that is more spacious or more affordable than in the city center. This clientele often looks for quiet, well-served neighborhoods with schools, parks, and shops within walking distance, which several areas of Leganés already offer or are developing.
Consolidated data illustrating the attractiveness of the rental market
In numerical terms, rentals remain attractive.
Consolidated data indicate market trends.
| Rental indicator (2025‑2026) | Approximate value |
|---|---|
| Average rent for apartments | €14/m²/month |
| Average rent for houses | €12/m²/month |
| Average rent all types (Feb 2026) | €655/month |
| Median rent (Feb 2026) | €550/month |
| Average rent from listings (Aug 2025) | €12.49/m²/month |
At the level of the province of Madrid, average gross yields are around 6.4%, with a national average close to 6.3%. In Leganés, the average gross yield is estimated at around 6.5%, with segments that can exceed 7% depending on the type of property and location. In a country where a gross yield above 6% is considered “good” and above 7% “excellent,” Leganés positions itself in the upper range without requiring the entry ticket of the city center.
Neighborhood mapping: where to invest in Leganés?
The key to a good investment in Leganés is not just choosing the city, but targeting the most suitable neighborhood for your strategy: rental yield, capital appreciation, target tenant profile, budget… The report offers a detailed look at the main areas, with sales and rental price data for August 2025.
Sales prices and rents by area
| Area (August 2025) | Sale price (€/m²) | Rent (€/m²/month) |
|---|---|---|
| Centro | 2,745 | 16.00 |
| Zarzaquemada – El Carrascal | 2,779 | 11.68 |
| San Nicasio – Campo de Tiro – Solagua | 2,441 | 10.08 |
| Las Dehesillas – Vereda – Montepino | 2,458 | 11.34 |
| Valdepelayo – Arroyo Culebro | 2,019 | 8.70 |
| Leganés Norte | 2,136 | 6.71 |
| La Fortuna | 2,246 | 13.60 |
These figures show significant differences that reflect different urban realities.
Centro: historic core and prime yields
The center of Leganés concentrates some of the oldest buildings, many shopping streets, municipal institutions, and iconic squares like Plaza Mayor. Here you’ll find a mix of historic apartments, renovated housing, and recent constructions.
This is where the rent per square meter is highest (€16/m²/month in August 2025), with sale prices also in the upper end of the local range (around €2,745/m² in listings, renovated properties can go higher). This area suits investors targeting urban tenants, often young professionals or couples, willing to pay more to be at the center of everything.
The downside, from a strict profitability standpoint, is that the high sale value can limit the gross yield compared to some emerging neighborhoods. However, vacancy risk is low, resale liquidity is excellent, and property value is high.
Zarzaquemada and El Carrascal: mobility and massive rental demand
Zarzaquemada and El Carrascal are described as consolidated neighborhoods, born from the large urbanization plans of the 1960s‑1970s. They are very well connected, have many shops and services, and benefit from high demand from students and workers.
Zarzaquemada is even mentioned as one of the most expensive sectors in the city, with prices reaching around €3,300/m² in some cases. However, August 2025 data indicates an average listing price of €2,779/m² for the Zarzaquemada – El Carrascal area, with a rent of about €11.68/m²/month.
In certain neighborhoods, the purchase price to rent ratio offers a decent yield, although not maximal. The main advantage lies in the depth of rental demand, ensuring high occupancy security among students, families, or employees. For an investor prioritizing this security over maximum yield, these areas represent an excellent compromise.
El Carrascal also hosts the large shopping center Parquesur, which generates a constant flow of visitors and strengthens the area’s appeal. It offers a wide spectrum of housing, from apartment towers to more upscale penthouses.
San Nicasio, Campo de Tiro, and Solagua: balance between price and quality of life
San Nicasio is one of the historic neighborhoods of Leganés’s growth, with a strong community identity, plenty of green spaces, schools, and sports facilities. Homes here often offer generous floor areas and easy parking, which appeals to families.
The San Nicasio – Campo de Tiro – Solagua area averages €2,441/m² for sales and about €10.08/m²/month for rentals. Solagua, within this group, deserves a special mention: it is presented as one of the “green lungs” of the southern Madrid area, with over 180,000 m² of green spaces, a lake, and the Butarque park as a reference.
Solagua concentrates a new or recently built supply of quality housing, particularly appreciated by families looking for peace, modernity, and nature nearby. Developments like Célere Solagua (30 units, all sold, with pool, terraces, storage rooms, and two parking spaces per unit) illustrate the upscaling of this sector. According to the report, the last units of the cooperative development NextSolagua are offered at cost price, which is a one-off opportunity for those joining a cooperative.
San Nicasio and Campo de Tiro, meanwhile, combine planned urbanism, services, good transport links, and more moderate rents than in the center, which can slightly improve the yield compared to an acquisition in the heart of Centro.
Valdepelayo, Montepinos, Arroyo Culebro: the family-friendly “Sector 3”
The neighborhoods of Valdepelayo, Montepinos, and Arroyo Culebro, sometimes collectively referred to as Sector 3, are recently built and mix residential housing and shops. They are located in the southeastern part of the municipality, with a true family orientation.
In August 2025, listing prices in Valdepelayo – Arroyo Culebro are the lowest in the city, at around €2,019/m² for purchases and an average rent of about €8.70/m²/month. These contained prices represent an affordable entry point for investors, particularly suitable for a long-term investment strategy, betting on the future maturation of the neighborhood.
Arroyo Culebro stands out for its mix of apartments and townhouses organized in developments with pools, gardens, and private parking. The neighborhood attracts families seeking tranquility, green spaces, and good schools while remaining connected to Madrid. For an investor, this family tenant profile means longer leases and lower turnover, sometimes at the cost of a slightly lower gross profitability than small student units.
Leganés Norte: 1990s neighborhood and new dynamics
Built in the 1990s, Leganés Norte benefits from a good transport network (Cercanías, metro, bus) and proximity to large shopping centers like Plaza Nueva, Parquesur, and Isla Azul. Listing prices in August 2025 stand at around €2,136/m², with a fairly low average rent of €6.71/m²/month, reflecting a perhaps more abundant rental supply or slightly less strained demand than in other neighborhoods.
However, this area is far from static. For instance, there is the sports complex project funded by C.D. Leganés football club (over €4.2 million investment), with tennis and padel courts, multi-sport pitches, etc. This type of facility strengthens residential appeal and could, in time, revalue the neighborhood.
In 2026, specific data points to transactions at €3,116.60/m² in Leganés Norte, showing the market’s heterogeneity depending on the quality and exact location of the property. For a patient investor, this neighborhood could be a bet on future revaluation, especially if major urban projects nearby (like Puerta de Madrid) materialize.
Leganés Norte real estate market analysis 2026
La Fortuna, Vereda de los Estudiantes, and new projects
La Fortuna, in the east of the city, is known for its quieter atmosphere, lower building density, and new residential developments. Prices are moderate (around €2,246/m² for sales in August 2025), but rents are relatively high (€13.60/m²/month), making it a sector with theoretically attractive yields.
Several new programs are listed there, such as Vive Leganés and Residencial Santa Lucía (8 units, energy rating A, pool, terraces, prices between approximately €285,000 and €349,000 for 64 to 96 m²). This type of development attracts clients looking for modern comfort and energy performance, and can appeal to investors who bet on energy consumption discounts as a rental and valuation argument.
Vereda de los Estudiantes, meanwhile, is described as a growing neighborhood, with modern infrastructure, schools, and recent housing. Popular with young families and professionals, this area is considered to offer excellent capital appreciation potential over the long term.
Puerta de Madrid: future mega‑project to watch
The “Puerta de Madrid” project, launched by the Leganés city council, is one of the most ambitious long-term developments. Located between Leganés Norte and Arroyo Butarque, it plans over one million square meters, of which 60% for housing, facilities, and economic activity, and 40% for green spaces and leisure. The plans include about 3,800 homes, of which 60% are protected housing (2,400 units), 1,500 affordable rental apartments through the “Plan Vive” of the Community of Madrid, and 1,500 free-market homes.
Even though construction is expected to start around 2030, with possible advancement depending on the regional legislative framework, this future neighborhood, designed as a green and sustainable “15-minute city,” will be decisive for the market. At this stage, it is more of a long-term signal for investors: confirmation that Leganés remains a major residential expansion city in southern Madrid.
Property types and investment strategies
The Leganés market is diverse: old apartments, new homes, townhouses, semi-detached or detached villas, small student units, large family apartments. Each type corresponds to a different investor profile and strategy.
Aggregated data on average prices show that apartments sell on average more expensively per square meter than houses (about €3,650/m² vs €3,150/m² in 2026), reflecting strong demand for well-located modest-sized units, especially near transport and university areas.
On the rental side, average rents per square meter are also higher for apartments than for houses (about €14/m² vs €12/m²). In practice, this often means that a well-located small unit provides a better gross yield than a larger house further out, even though the latter can offer greater long-term capital appreciation potential and a more stable tenant profile.
Student market and small units
For an investor targeting high yields, studios and one-bedroom apartments near Carlos III University or the major stations (Leganés Central, Zarzaquemada, etc.) are a logical option. Studies on the Madrid market show that small units (30 to 50 m²) generally achieve the best gross yields, often between 6 and 7.5%.
The average monthly rent for a student room in Leganés, in a very active market with an occupancy rate above 75%.
The downside of this strategy is high tenant turnover, the need for more intensive management, and, where applicable, greater sensitivity to regulatory changes regarding short-term or tourist rentals.
Family homes and peripheral houses
At the other end of the spectrum, semi-detached houses, chalets, and large apartments in neighborhoods like Arroyo Culebro, Valdepelayo, Montepinos, or San Nicasio target a family audience. The gross yield there is sometimes more modest, but leases are generally longer, vacancy limited, and wear and tear less than with a constant student turnover.
Houses with 4 to 8 bedrooms in Leganés sell on average between €400,000 and over €800,000. Monthly rents range from about €1,927 for 4 bedrooms to over €6,000 for 8 bedrooms. These prices, which confirm a high-end segment even in the suburbs, can vary greatly depending on the neighborhood and property condition.
New developments and energy performance
New developments in Leganés, whether in Solagua, La Fortuna, or future public and cooperative projects, often boast high energy ratings (A, in the case of Célere Solagua or Residencial Santa Lucía). Besides comfort for occupants, this element is increasingly valued by tenants and could weigh in tax deduction criteria, as Spain maintains tax deductions for energy improvement works until the end of 2026.
For an investor, opting for a highly energy-efficient property allows, in the medium term, to hedge against possible regulatory surcharges on low-performance housing and to justify slightly above-average rents.
Yields, taxation, and regulatory framework
Investing in Leganés means investing in Spain, with the entire national and regional tax framework applying. Understanding these parameters is crucial for calculating a realistic net yield.
Gross and net yields
Based on regional data, one can estimate that a gross yield of around 6.5% is achievable in Leganés on well-positioned products, with some configurations exceeding 7%. However, national studies estimate that operating expenses (taxes, insurance, maintenance, management, vacancy) absorb on average about 30% of gross rents, bringing the net yield to around 4–4.5%.
In practice, an investor who buys an apartment for around €3,000/m² in a high-demand neighborhood and rents it at €14/m²/month obtains an annual rent of about €168/m². The theoretical gross yield is then about 5.6%. By targeting a more competitive purchase price (for example €2,500/m² through good negotiation) or a slightly higher rent on a very well-placed property, one naturally gets closer to 6–7%.
Purchase taxes
At purchase, the investor must budget, in addition to the sale price, an overall additional cost of around 8 to 13% covering:
Breakdown of the main costs and taxes to anticipate when purchasing a home in Spain, depending on whether it is a new or second-hand property.
For a second-hand property: ITP (about 6% in Madrid). For a new property: VAT at 10% (excluding social housing) plus documented legal acts duty.
Fees for authenticating the deed of sale, typically between €600 and €1,200.
Costs for registering the property, estimated between €400 and €1,000.
Recommended fees for legal assistance, often 1% to 2% of the purchase price (plus VAT).
These costs naturally impact the final yield: an investor who calculates profitability based solely on the sale price underestimates their initial expenses.
Rental taxation and incentives
In terms of rental income, Spanish law offers significant reductions on income tax for landlords, provided the property is rented as a primary residence. A standard 50% deduction on gross rental income is provided, which can reach 60%, 70%, or even 90% in certain cases: recently renovated housing, location in a “stressed” market area, rent reduction compared to the previous contract, renting to young people between 18 and 35, to a public administration or an NGO, etc.
These mechanisms can significantly improve the net after-tax yield, particularly in cities like Leganés where rental demand is strong and where certain areas could be classified as stressed markets under national criteria (share of income spent on housing, evolution of rents relative to inflation).
Municipal capital gains tax and recurring taxes
Investors must also account for the “plusvalía municipal”, a local tax on the theoretical increase in land value upon resale, inheritance, or donation. The calculation coefficients have been revised and, from 2026, the tax increases significantly for holding periods of 7 to 15 years, while very long holding periods (beyond 17–20 years) are treated slightly better. It is therefore important to integrate this element into the exit strategy.
The IBI, the annual property tax in Spain, is calculated on the cadastral value of the property with rates generally between 0.4% and 1.1% for urban properties. Since 2025, a significant surcharge applies to vacant homes: it can reach up to 150% of the normal IBI for large property owners holding multiple unoccupied homes for more than two years. This measure, in effect in Leganés as elsewhere, explicitly aims to encourage the rental or use of real estate.
Specific rules for non‑residents
Non-resident investors must obtain a tax identification number (NIE), open a Spanish bank account, and comply with reporting obligations via, notably, the Modelo 210 form for rental income, imputed income on secondary residences not rented out, or capital gains. Tax rates vary by origin (19% for EU/EEA residents on certain income, 24% for non-EU residents on imputed real estate income, for example).
Ongoing European procedures on the taxation of non-residents, particularly regarding the deductibility of expenses for non-EU landlords, could further evolve this framework in the coming years.
Long‑term outlook: demographics, urban projects, and price trajectory
The strength of a real estate investment also relies on demographic and economic fundamentals. In this regard, Leganés presents several advantages.
Demographically, the city experienced spectacular growth between 1960 and 1980 (from 7,655 to over 160,000 residents), then a more moderate but steady progression, driven by the development of new neighborhoods. Recent years show a population around 190,000–195,000, with a slight upward trend and a positive average annual growth rate between 2016 and 2022.
This is the number of residents aged 18 to 64, representing the core of the working-age population and potential tenants.
Economically, the sectoral distribution of employment shows the weight of distribution services and hospitality‑restaurant, construction, and financial and business services. Per capita disposable income is below the Madrid regional average, but the city partially compensates with lower housing costs. The unemployment rate for under-25s, around 8.3%, remains relatively contained for a Spanish context.
More than 500 public rental housing units are planned on municipal plots in several neighborhoods.
These choices reflect a political will to address housing tension while attracting private investment. For the investor, this means an environment where demand should remain strong in the long term, but where public and private supply will gradually increase, which could moderate price increases in certain segments while consolidating market depth.
How to practically approach an investment in Leganés
For an individual investor, Spanish or foreign, who wants to position themselves in Leganés, a few methodological guidelines emerge from the report.
First, clarify your objective: are you primarily seeking a regular rental yield, or strong capital appreciation upon resale? In the first case, targeting small units near the university, Cercanías stations, or major transport axes (Centro, Zarzaquemada, El Carrascal, San Nicasio) makes sense. In the second, looking at emerging or transforming neighborhoods (Solagua, Vereda de los Estudiantes, La Fortuna, Leganés Norte) may be more relevant.
For a rental investment in Spain, it is crucial to include in your budget the entry costs (up to 12% of the purchase price), applicable rental taxation, possible management fees (8 to 12% of rents if you use an agency), and a provision for rental vacancy, whose rate is estimated between 3 and 6% in major metropolitan areas.
Then, thoroughly analyze micro‑locations: proximity to a park, shopping center, metro or train station, hospital or campus, but also the quality of the homeowners association, fees, internal regulations (for example regarding short-term rentals). Studies cited in the report show that an additional minute of travel time to the center can reduce a home’s value by 0.2 to 1%, while the presence of a nearby station can increase prices by about 10%.
It is crucial to take into account new national rules on tourist rentals (mandatory registration, community agreement required, stricter taxation), the definition of ‘large property owners,’ and the regulation of ‘stressed’ rental markets. This framework applies to all municipalities, including Leganés, even though it is not currently a stressed area like Barcelona.
Conclusion: a market at the crossroads of yield and security
In summary, investing in real estate in Leganés means positioning yourself in a city that combines several rare traits in the current Spanish market: immediate proximity to an expensive and dynamic capital, still reasonable prices, confirmed value growth, deep and diversified rental demand, ambitious urban projects, solid public services, and a balanced living environment.
For a successful rental investment in Leganés, you need to carefully choose the location, seriously incorporate tax optimization, and adopt an investment horizon of at least 5 to 10 years. This southern suburb of Madrid offers a respectable rental yield and a good probability of capital appreciation, standing out as a rational option to combine profitability and risk control, especially when central areas often show lower gross yields (3-4%).
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
