Madrid, a rising value for investing in luxury real estate

Spain’s capital has climbed five spots and is now confirmed as the fourth most sought-after city in the world by HNWIs.

Madrid is such a cosmopolitan, thriving and optimistic city that it has become a privileged place of residence for buyers from all over the world. These are findings from the BARNES Global Propety Handbook (GPH), the annual report that we publish at BARNES and which is essential for a deep undertsanding of the luxury market. Notably, in the latest GPH, it can be highlighted that Spain’s capital is the fourth most sought-after city in the world by HNWIs (high-net-worth individuals). In a ranking led by Dubai, followed by Miami and New York, Madrid has climbed five notches from the last report, thanks, among other things, to its urban quality of life, safety, climate and an excellent transport 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 laSexta and the economic newspaper Cinco Días highlight the five positions that Spain’s capital has climbed since the last BARNES report and the premium square meter Price, which has registered an increase of between 9% and 13%.

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

As well explained by Alvise Da Mosto, Managing Director and Partner of BARNES Spain on the programme Con I de inmobiliaria on Radio Intereconomía: 'Madrid is a city that continues to be very attractive for investors compared to others in the ranking, such as Paris, where there has been a drop in prices of 6%, and London, which has registered a 1% drop in transactions, while our agency in Madrid recorded a 25% increase in sales. Madrid is positioning itself as a European economic capital.'

Without a doubt, the economic issue and the interest that cities arouse for foreign capital is one of the factors that we have taken into account in the study to compile the table. Hence, the newspaper 20 Minutos emphasises 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, analyses the Madrid neighbourhoods most sought after 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. 'They are homes with high ceilings, many of them with balconies, but also warn: many of them require a major renovation, but judging by the target audience of the real estate agency, that doesn't seem to be a problem.' 

The profile of the buyers is echoed by the Idealista blog. It's a detail we made very clear in the GPH report. 'There has been a noticeable interest from European citizens in investing in the city, which is added to the 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 business volume by 20% in 2023. Without a doubt, we expect that 2024 will follow the same trend, with an abundance of high-quality properties with prices over €3 million and aimed mainly at international clients.

Barcelona and Malaga also seduce the luxury market

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

It's only fair that we highlight Barcelona's fifth position. 'The Catalan capital offers excellent investment opportunities, both for primary and secondary residences as well as for the rental market. It's value for money is optimal.'

El Diario de Sevilla, in its information on the GPH, focuses on the appearance of Malaga in the ranking of the favorite cities of the rich to buy a house. Malaga hoy also emphasizes this, 'the capital of the Costa del Sol joins Madrid and Barcelona as the Spanish cities preferred by this economic elite to buy properties'. 

Read the GPH here!