Faced with this situation, in the spring of 1943, President Antonio Santos Peralba expressed the need to build a new stadium with an initial capacity of 40,000 spectators,[7] although the club's financial difficulties raised uncertainties about its realization.

Additionally, the necessary expropriations for the urbanization of the area, including the future streets Concha Espina and Plaza de los Sagrados Corazones, cost 1,000,000 pesetas.

[10] In September 1944, after evaluating the seven submitted projects, the jury awarded the first prize to the design of Manuel Muñoz Monasterio and Luis Alemany Soler.

In a context where banks did not consider football a safe investment and where official support from sports organizations was not obtainable, Bernabéu delegated to treasurer Luis Corrales Ferras[7] the task of designing an innovative financing plan.

The next step was crucial:[7] Bernabéu presented this plan to Rafael Salgado, president of Banco Mercantil e Industrial and a Real Madrid supporter.

The construction was awarded to the company Huarte y Compañía, S.A.,[7][12] beginning in June 1945 under the direction of architects Alemany and Muñoz Monasterio and with the collaboration of civil engineer Carlos Fernández Casado.

[13] Over 30 months, the works faced numerous obstacles, from the shortage of basic materials in post-war Spain to technical difficulties due to a nearby railway link popularly known as the "tunnel of laughter".

This is how Fernando de Cárcer Disdier, the club's first vice president, summarized the development of the construction in 1947:[7] "We encountered numerous difficulties in transporting materials.

A telephone exchange and a radio amplification center… Additionally, a room for detainees has been built, thus avoiding the need for law enforcement to be distracted by escorting them.

Regarding the costs, around 16,000,000 pesetas were budgeted, but this has increased due to perfectly justified reasons, such as the nature of the terrain, the rise in material prices over these 30 months, more than 25% in some cases, and the new labor regulations in the construction industry that required safety measures not contemplated in the project.

On 4 January 1955, after the General Assembly of Members Compromisaros, it was decided that the stadium adopt its present name in honour of club President Santiago Bernabéu.

[20] On 14 December 1972, coinciding with the 25th anniversary of the Santiago Bernabéu's inauguration, the first electronic scoreboard was installed inside the stadium and later utilized for the first time in a friendly match against the same rival that Madrid faced in 1947, the Portuguese Belenenses.

The work started on 7 February 1992 and concluded on 7 May 1994 with a final cost of more than 5 billion pesetas, substantially raising the debt of the club, which no longer had any institutional support.

The work concluded with the creation of an amphitheater on the west side and in the foundations, as well as the opening of the new commercial center, "La esquina del Bernabéu."

[24] When Florentino Pérez became the president of the club, he launched a "Master Plan" with one goal: to improve the comfort of the Santiago Bernabéu and the quality of its facilities, and maximise revenue for the stadium.

[27][28] After investing a total of 256 million euros since 2000,[29] the Board of Directors, led by Florentino Pérez, decided to take advantage of the stadium's prime location to launch an ambitious renovation project with a dual objective: to transform the Santiago Bernabéu into a global icon of sports architecture and to make it one of the club's main sources of direct revenue, allowing it to continue competing economically with clubs owned by large private capital in the future.

The proposed plan included a new architectural envelope, roof covering for all seats, and the incorporation of bioclimatic systems with renewable energy, as well as the construction of two new public plazas, a hotel, and a large shopping center on the side facing Paseo de la Castellana.

To carry out this proposal, an International Architecture Competition was held in 2012[32] in which four teams of world-renowned prestige participated: one formed by the studios of Herzog & de Meuron and Rafael Moneo; another composed of Foster and Partners and Rafael de la Hoz; a third consisting of the teams of Populous and Estudio Lamela; and a fourth formed by GMP Architekten, L35, and Ribas & Ribas, whose proposal was announced as the winning project on 31 January 2014.

The court argued that the plan entailed a substantial alteration of land use and an unjustified free grant of urban development rights to Real Madrid.

Finally, on 11 November 2023, a third loan[40] of 370 million euros for 30 years was requested to cover cost overruns due to the COVID-19 pandemic and the Russian invasion of Ukraine.

It occupies the block bounded by the Paseo de la Castellana and the streets of Concha Espina, Padre Damián, and Rafael Salgado.

The first leg was held at Boca Juniors' home pitch, La Bombonera, on 11 November 2018, ending in a 2–2 draw with no away goal rule applied.

[50] In the 1982 World Cup held in Spain, the Santiago Bernabéu Stadium hosted four matches: three in the second round and the final in which Italy defeated West Germany 3–1.

[54] The Santiago Bernabéu Stadium hosted its first American football game on 16 November 1958, after a La Liga match between Real Madrid and Valencia; however, the teams were not professionals, but represented two United States Air Force bases in Europe: Tigers from Toul (France) and Tacooners from Giebelstadt (Germany).

[59] The stadium is scheduled to host its first National Football League game in 2025 between the Miami Dolphins and a team to be determined, as part of the NFL International Series.

[61] The Santiago Bernabéu Stadium has hosted many touring musicians with dates in Madrid due to its expansive seating capacity and centralised location.

[65] On 1 June 2002, the cast (16 contestants) of the reality singing competition show Operación Triunfo performed a sold-out concert at the Bernabéu Stadium as part of a 27-city Spanish tour.

[66][67] Their second concert was part of the Wrecking Ball World Tour on 17 June 2012, with an audience of 54,639 people, the first time Springsteen and his band sold-out the stadium.

[71] On 25 June 2014, the Rolling Stones became the third international artist (and rock band) to headline a show at the stadium, when they brought their 14 On Fire tour to a sell-out crowd of 57,416 spectators.

[72] On 29 June 2018, the top 16 finalists of the ninth series of Operación Triunfo performed at the stadium in front of 60,000 people, as part of their Spanish tour.