The city is still a cultural haven and specific areas still have huge demand. However, prices are now at rock bottom and are unlikely to fall any lower, so it is important to act now.
Daniel Talavera from the Spanish Brick explained: "The buyer is waiting for greater reductions in prime areas, which will not happen in some locations in Madrid, but also in Valencia and Barcelona."
Prices remain stable in the city's districts of Salamanca and Retiro, where demand is high. For those looking for a steady investment, these areas are ideal.
However, it is advisable for buyers to increase their budgets by approximately 20 per cent when looking in these prime districts, according to the Spanish Brick.
For those with sights set on a low-price property, the real estate market in coastal areas currently offers the most attractive deals and is well placed to attract a constant stream of tourists for holiday rentals.