Madrid, the Preferred Destination for High-Net-Worth Individuals

In the 2025 edition of the BARNES City Index, Madrid leads the ranking of the most sought-after cities by UHNWI (Ultra High-Net-Worth Individuals), those with a net worth exceeding 30 million dollars. The Spanish capital tops the list, followed by Dubai, Miami, Monaco, and Milan, solidifying itself as the epicenter of luxury real estate investment in Europe.

"Exclusive properties have proven to be a safe investment in times of uncertainty. In this regard, Madrid and Milan have made significant leaps in the ranking due to their ability to offer a comprehensive experience: tax advantages, high-quality infrastructure, and a sophisticated lifestyle," says Thibault de Saint Vincent, President of BARNES. Heidi Barnes, founder of the firm, adds: "Buyers seek authentic destinations where they can enjoy an exceptional way of life without sacrificing top-tier services such as prestigious educational institutions and a real estate market with strong appreciation potential."

The 2025 ranking brings notable changes, with Madrid securing the top spot while cities like Paris and New York have fallen to sixth and seventh place, respectively.

New Trends in Luxury Real Estate Investment

For high-net-worth buyers, owning multiple luxury properties is not just a status symbol but also an investment strategy. Over the past decade, the simultaneous use of multiple residences has become a well-established trend, driven by the flexibility of remote work. It is increasingly common to have a pied-à-terre in a metropolis like Madrid or Miami, combined with properties in holiday destinations.

In this context, the concept of "real estate sustainability" has gained prominence, based on the circularity of properties through renovation and space reuse. "We observe a growing preference for properties with history, renovated with sustainable criteria while respecting their architectural identity," adds Thibault de Saint Vincent.

Madrid, the Epicenter of Luxury Real Estate Investment

Madrid's rise within the BARNES City Index has been remarkable, climbing from fourth to first place in just one year. Its quality of life, safety, warm climate, and excellent transportation network make it a magnet for international buyers. This is further reinforced by the presence of major corporations and an increasing number of investors who see Madrid as a high-potential market.

Since 2016, the city's foreign population has grown by 20%, with particular interest in neighborhoods such as Salamanca, Chamberí, and Chamartín, where prices have increased between 11% and 20% depending on the location. "Madrid has solidified itself as a benchmark in the luxury real estate sector. Its market is dynamic, with growing demand driven by international investors," says Alvise Da Mosto, Associate Director of BARNES Spain.

However, Madrid’s dominance could be challenged by the Spanish government's proposed tax on property purchases by non-Europeans, a measure that may impact the market's upward trend.

Examples of Investment in Madrid with 1 Million Euros

• A renovated 80 m² apartment in one of the most exclusive areas.
• A 100 m² apartment in Chamberí, ideal for families or investors.

BARNES City Index 2025 Ranking

1. Madrid (4)
2. Dubai (1)
3. Miami (2)
4. Monaco (12)
5. Milan (17)
6. Paris (5)
7. New York (3)
8. London (6)
9. Rome (=)
10. Austin (7)
11. Abu Dhabi (13)
12. Budapest (14)
13. Geneva (11)
14. Istanbul (10)
15. Tokyo (16)
16. Athens (33)
17. Zurich (15)
18. Dallas (22)
19. Singapore (20)
20. Stockholm (21)
21. Copenhagen (18)
22. Barcelona (19)
23. Doha (35)
24. Vienna (25)
25. Lisbon (8)
26. Dublin (=)
27. Los Angeles (24)
28. Amsterdam (42)
29. San Diego (28)
30. Brussels (29)
31. Munich (27)
32. Seoul (31)
33. Oslo (32)
34. Florence (46)
35. Malaga (Marbella) (47)
36. Sydney (=)
37. Luxembourg (new entry)
38. Mumbai (41)
39. Boston (38)
40. Montreal (34)
41. Beijing (39)
42. Hong Kong (23)
43. Mexico City (49)
44. Riyadh (new entry)
45. Auckland (45)
46. Toronto (43)
47. Bangkok (40)
48. Shanghai (new entry)
49. Shenzhen (44)
50. Washington (30)

(In bold, cities that have climbed more than ten places compared to 2024)

The full BARNES City Index 2025 report confirms that the luxury real estate market continues to evolve, with Madrid leading as the preferred destination for high-net-worth buyers. For more details, consult the Global Property Handbook.