Madrid has become his new favorite real estate destination

Madrid has become one of the favorite destinations For great fortuneswhat they are looking for Invest in luxury properties Out of your country. The arrival of new millionaires, especially from the United StatesUnited Kingdom and France, has caused An unprecedented boom in the high -standing real estate market of the Spanish capital.

This trend is promoting Luxury real estate market prices and changing the profile of the buyers, placing Madrid at the international sight. As I pointed Humphrey White, CEO of Knight Frank Spain to Expansion“55% of luxury housing buyers in Madrid are Spanish”, compared to 70% in 2018.

Hunting luxury

According to the report ‘The Wealth Report 2025‘ Of the Knight Frank consultant, the reduction of interest rates in 2024 has been key to reactivating investment in luxury homes worldwide. The prices of these properties grew 3.6% in 2024 globally, with especially notable increases in Asian markets, the Middle East and in certain European cities.

Seoul led the growth with a price increase of 18.4%, followed by Manila (17.9%), Dubai (16.9%), Riad (16%) and Yeda (9.6%). In Europe, the average increase was 2.5%, but Madrid far exceeded this figure until it reached an increase of 5.5% in the price of luxury homes.

To put in context the price increase in this type of properties, in 2014, a investment of one million euros allowed to buy a luxury floor of 136 meters in the capital. Today barely reaches for a 89 square meters. “The luxury is now more luxurious,” says the report, underlining how the sophistication of the offer has been increasing along with prices.

Operations in this type of housing, with prices that can range between 11,000 and 15,000 euros per square meter. However, they can also reach exceed 25,000 euros per square meter, although these prices remain exceptional and reserved for extraordinary qualities properties.

This sustained growth places Madrid among the most competitive European cities in the segment, above other capitals such as London, Paris or Milan. The trend reflects the city’s appeal for international investors and, especially, for Americans who seek to diversify their assets in markets with revaluation potential.

Madrid, meeting point for ultra -up

He Real estate interest in Madrid 60% shot in March 2025 compared to the previous month, consolidating the city in the 26th position of the Global Prime Markets ranking, while Barcelona occupies position 37.

According to Knight Frank’s study on large assets, Madrid is already the main destination of foreign investment in Spain, chosen by 67.5% of investors. In addition, ultra -ups already represent 43% of luxury real estate purchases in the capital, and their number is expected to grow 17.4% to 2028.

He buyer profile is changing quickly. In 2018, American investors had barely presence. However, in 2023 they already represented 4% of the operations, and in 2024 they have doubled their weight until they are 8% of the purchases of luxury properties. As the authors point out of the report“Many great heritage are leaving the country and investing in Europe Through Spain. “

However, one of the factors that has most conditioned the price increase in luxury properties in Madrid has been The shortage of supply Faced with a growing demand. The Urban regulations limits the Construction of new homes high -end, which maintains pressure on prices. According The published by The SpanishKnight Frank counts only 13 new high -end project developments, adding a total of 78 homes. All of them concentrated in the Salamanca neighborhood, The most demanded neighborhood For this client profile.

Money calls money

Madrid’s appeal is not limited to the residential sector. The report ‘The Glittering Power of Cities for Luxury Growth‘From the consultant McKinsey, he places the Spanish capital among the cities with the largest Concentration of the luxury sector.

According to the report ‘European Luxury Retail 2024‘ From Cushman & Wakefield, of the eight new open luxury stores in Spain in 2024, six chose the ‘gold mile’ Madrid as location. This phenomenon reinforces the position of Madrid as Epicenter of luxury in Europe and consolidates its attraction for both real estate investors and for large international firms.

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Image | Pexels (Gotta Be Worth It, Alex Moliski)