Madrid City Review


About This Report

Nov 2017

Madrid is Spain's capital and the country's largest metropolis. With 6.4 million residents in 2016, it accounted for 14% of the Spanish population, compared with Barcelona's 12%. In terms of GDP per capita, it fared 16% above Barcelona and 31% above the rest of the country in 2016, but moderately by Western European standards. Unemployment, albeit low by Spanish standards, remains a concern, as the number of jobs dropped by 3.6% in 2016, depressing household incomes by 7.5% in real terms.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Madrid City Review


The city's prominence in business services (this sector provided 22% of the jobs in Madrid, versus 13% elsewhere in Spain, on average) contributes to the superior labour productivity in Madrid compared with other parts of Spain: 31% higher in 2016. Labour productivity (hence wealth in general) in Spain's capital city is below the median of the values in first-tier Western European metropoles.

Lower unemployment rate and higher labour force participation help boost incomes

In 2016, per household disposable income in Madrid was 21% higher than in the rest of the country. The unemployment rate of 16% in 2016 was notably lower than in the rest of Spain (20%). Also, higher labour force participation (78%, versus 74% in the rest of Spain, was employed or actively searching for a job) also contributed to higher incomes in Madrid.

Food is affordable

Despite the advantage in earnings, Madrid's households spent on average 3.6% more on consumer items (excluding transport and housing) in 2016. Food is, however, affordable in Madrid: households in the city spent 15% less than those outside the capital city in 2016. This allowed Madrilenos to spend significantly more on education (52% more than elsewhere in Spain).

Slightly more expensive city to live in compared with the rest of the country  

Combined spending on housing and transport (measured per household) was 27% higher in Madrid compared with the rest of the country in 2016, making the city slightly more expensive than the rest of Spain, given its 21% higher disposable income.


Understanding Madrid Review structure
Chart 1 Overview
Key facts on Madrid
Summary 1 Key Facts On Madrid 2011, 2016, 2021


Delimitation of the metropolitan region
Chart 2 Map Of Madrid Metropolitan Area
Main business districts


Industrial make-up
Chart 3 Industrial Composition Of Madrid 2016
Chart 4 Labour Productivity: Selected Cities 2016
Recent developments and outlook
Chart 5 Dynamics Of Real GDP In Madrid, Spain And Other Cities In Western Europe, 2011-2021
Summary 2 Labour Market Changes In Madrid 2011, 2016


City demographics
Chart 6 Population By Age 2016
Chart 7 Drivers Of Population Growth In Madrid 2011-2016
Household income
Chart 8 Household Distribution By Income In Madrid 2016 And 2021


Structure of household budget
Chart 9 Comparison Of Household Expenditure In Madrid And Spain, 2016
Summary 3 Madrid Household Budget Structure By Consumer Expenditure Item, % of total, 2011, 2016, 2021
City lifestyle
Second Best Shopping City In Europe
Not Yet A Bicycle-Friendly City
City affordability
Chart 10 Household Expenditure On Housing: Selected Cities 2016
Chart 11 Household Expenditure On Transport: Selected Cities 2016



Summary 4 GDP Development, 2011, 2016, 2021
Summary 5 GDP By Origin, Current Prices, US$, Million, 2011-2016
Summary 6 Population And Labour Force, 2011-2016
Summary 7 Employed Population By Economic Sector, % of total, 2011-2016
Summary 8 Population By Sex And Broad Age Groups, ‘000, 2011-2016
Summary 9 Population Growth, 2011-2016
Summary 10 Forecast Population Growth
Summary 11 Population By Educational Attainment, 2011-2016
Summary 12 Structure Of Consumer Expenditure By Main Category, 2011-2016
Summary 13 Consumer Expenditure By Main Category, Per Household, Constant (2016) Prices, US$, 2011, 2016, 2021
Summary 14 Households By Income Band, % Of Total, Constant (2016) Prices 2011, 2016, 2021
Summary 15 Households By Income Band, ‘000, Current Prices 2011-2016
Summary 16 Inflation, 2011-2016
Summary 17 Transport Indicators, 2011-2016
Summary 18 Air Pollution, Concentration In Micrograms Per Cubic Metre, 2011-2016
Summary 19 Possession of Consumer Durables, % of Households, 2011, 2016, 2021