Madrid becomes global luxury real estate hub — up to €25,000/m²
Barnes’ Global Property Handbook 2026 names Madrid #1 for the ultra-rich: up to €25,000/m², 40% jump in transactions in 2025 and 60% of buyers from Latin America.
Madrid is no longer playing second fiddle. Long overshadowed by Paris, London and Miami, the Spanish capital confirmed in 2025 that it has become the new epicenter of the global luxury property market. According to Barnes’ Global Property Handbook 2026, Madrid is the world’s top city for ultra-high-net-worth buyers for the second year running — and market activity is backing the ranking.
“Madrid is exploding,” say many industry professionals. Barnes reports an exceptional momentum in the city: its Madrid office recorded a 40% rise in turnover in 2025, driven by a marked increase in high-end transactions. Prices in prime neighborhoods now reach between €23,000 and €25,000 per square meter, and a well-located 100 m² apartment rarely sells for less than €2.3 million.
Competitive prices, quality of life and a welcoming stance toward foreign capital help explain Madrid’s rise. Compared with Paris and London, where top-tier prices frequently exceed €30,000/m², Madrid still offers relative value. For about €3 million, buyers can secure a 180 m² apartment renovated to a very high standard in Recoletos, or a 220 m² listed building home in Chamberí — opportunities that are increasingly rare in other European capitals.
Who is buying?
The luxury market in Madrid is largely international. Barnes finds that 60% of buyers of prestigious properties are from South America, followed by British, French and American purchasers. Waves of investment have mirrored political and economic instability across Latin America — early inflows from Venezuelan and Colombian buyers were later joined by Argentines, Mexicans and a rising number of Brazilians.
American interest is also growing, sometimes described by agents as the “Richard Gere effect” after the actor’s 2024 move to Madrid and his public praise of life in the city. These high-profile relocations amplify Madrid’s appeal to wealthy foreigners seeking space, culture and a quieter European lifestyle.
Neighborhoods in demand
Most international buyers favor large, bright apartments on high floors with high ceilings and buildings that have character. Renovation projects are less attractive in this segment. Salamanca remains the benchmark for prestige living — stone-and-brick early-20th-century buildings, luxury boutiques and gourmet restaurants. Chamberí appeals for its calm and architectural charm; Chamartín for its wide avenues, green spaces and upscale offerings. Cortes–Las Letras has seen a remarkable surge, with quality properties rising from about €8,000/m² in 2020 to at least €10,500/m² today.
Rentals and the premium short-term market
The luxury rental market is also booming. High-end studios are fetching around €2,500 per month, and top-tier rentals can exceed €20,000 monthly. In a striking 2025 example, Barnes Madrid negotiated a €40,000-per-month rental for a Mexican student — a sign of acute demand at the highest end.
Politics and long-term outlook
Madrid’s rise is supported by regional political strategies that openly court international investment. Regional president Isabel Díaz Ayuso has promoted Madrid as “the Florida of Europe,” a positioning that contrasts with some national-level policy shifts — for example, Spain abolished the “golden visa” in 2024 and there have been discussions about higher taxes on non-EU buyers. Despite that, Madrid captured 71% of foreign investment in Spain between 2018 and 2022, far outstripping Catalonia’s 11%, according to figures cited by Barnes.
With the number of ultra-rich growing faster than the general population, Madrid’s combination of quality of life, connectivity and relative price competitiveness has turned what once looked like a trend into a structural repositioning. More than a fad, the Spanish capital is asserting itself as a central hub for global luxury real estate.
