Luxury real estate in Madrid, a rising investment value

Madrid has climbed five places and reaffirmed its position as the fourth most sought-after city in the world by HNWIs.
Madrid is such a cosmopolitan, prosperous, and optimistic city that it has become a privileged place of residence for buyers from all over the world. These are data gleaned from the Barnes Global Property Handbook (GPH), the annual report we publish at BARNES that is essential for a deep understanding of the luxury market. As a relevant fact, in the latest GPH, we can highlight that the capital of Spain is the fourth most sought-after city in the world by HNWIs (High Net Worth Individuals), thus consolidating itself as a key destination for luxury real estate in Madrid. In a ranking led by Dubai, followed by Miami and New York, Madrid has climbed five steps compared to the previous report, thanks, among other things, to its urban quality of life, security, climate, and excellent transportation system.

The report we have published at BARNES is so comprehensive that the media have echoed many of the data included in it. Thus, both La Sexta and the economic newspaper Cinco Días highlight the five positions that the capital of Spain has climbed since the last BARNES report and the price per square meter of premium real estate, which has registered an increase of between 9% and 13%.

In its report, the economic newspaper of Prisa also focuses on the factors that the GPH report has taken into account to make the ranking, among which it distinguishes "market interest as an investment."

As Alvise Da Mosto, director and managing partner of BARNES Spain, explains in the program "Con I de inmobiliaria" on Radio Intereconomía: "Madrid is a city that remains very attractive to investors compared to others in the ranking, such as Paris, where there has been a 6% decrease in prices, and London, which has seen a drop in transactions of around 1%, while our agency in Madrid recorded a 25% increase in transactions. Madrid is positioning itself as the European economic capital."

Undoubtedly, the economic aspect and the interest that cities arouse for foreign capital is one of the factors that we have taken into account in the study to prepare the table. Hence, the newspaper 20 Minutos emphasizes in its information that "the cosmopolitan, festive, and bustling city of Madrid is becoming a very popular place of residence among buyers from all over the world."

Favorite neighborhoods, according to our GPH report

For its part, El Español, with our GPH report in hand, analyzes the most sought-after Madrid neighborhoods by these new investors with great economic solvency. "They are Justicia, Chamartín, Chamberí, and Las Cortes." Of course, it specifies what these flats are like. "These are high-ceilinged homes, many of them with balconies, but they also warn: many of them require extensive renovation, but judging by the target audience of luxury real estate in Madrid, that does not seem to be a problem."

The profile of buyers is echoed in the Idealista blog. This is a detail that we make very clear in the GPH report. "The interest of European citizens in investing in the city has begun to be noticed, joining Latin Americans who already have a home in the capital but are looking for a larger one to spend more time or even settle permanently."

The luxury sector is in a good moment, and our BARNES Madrid office has increased its turnover by 20% in 2023. Undoubtedly, we expect 2024 to follow the same trend, with an abundance of high-quality properties priced above 3 million euros and mainly targeted at international clients interested in luxury real estate in Madrid.

Barcelona and Malaga also attract the luxury market

Madrid is not the only dream of HNWIs. As we highlight in the GPH report, Barcelona and Malaga have also entered the ranking of the most desired capitals by the luxury real estate market.

It is worth noting Barcelona's fifth position. "The Catalan capital offers excellent investment opportunities, both for primary and secondary residences and for the rental market. Its price-quality ratio is optimal."

El Diario de Sevilla, in its information about the GPH, focuses on the appearance of Malaga in the ranking of the favorite cities of the wealthy to buy a house. This is also emphasized by Malaga Hoy, "the capital of the Costa del Sol joins Madrid and Barcelona as the Spanish cities preferred by this economic elite to buy properties.