Madrid is fashionable among the rich. The latest report to support this statement is the Barnes Global Property Handbook, which sees the Spanish capital move up five notches compared to last year and is positioned as the fourth most searched city by buyers. HNWI (High Net Worth Individuals). The leader of the 2023 ranking is Dubai, having taken the throne from Paris, which drops to fifth place. Miami and New York remain in second and third place, respectively. Two other Spanish cities are on the list, Barcelona (19) and Malaga, which is there for the first time and rises to 47th place.
The classification takes into account several factors, one of which is interest as an investment, where the real estate agency specializing in luxury properties takes into account an increase in prices of between 9% and 13% depending on the district of premium residential properties in 2023, explains Alvise Da Mosto, general director of Barnes Madrid. “It is a city that continues to be very attractive to investors when we compare it with others in the ranking, such as Paris, where prices fell by 6%, and London, where there was a significant drop in transactions.” , while our agency in Madrid recorded a 25% increase in sales.
When compiling the ranking, it is also taken into account that it is a city of great interest to foreign capital due to its pleasant climate, security and infrastructure. “There are no other European capitals that have an airport as close to the city center and business districts as the four towers,” says Da Mosto. Likewise, he notes that “there are many venture capital firms and investment banks that were not present in the city and now are.” This allows large managers based in London or Paris to have the possibility of investing in Madrid with one Home to consider living here full-time.”
The real estate company predicts that Madrid will remain in the top five places in the coming years as the interest of European citizens to invest in the city becomes noticeable, also joining Latin Americans who already have a home in the capital, looking for but looking for a bigger place to spend more time or even settle permanently. In this context, Da Mosto recalls that this buyer profile “is never in a specific location all year round, but changes depending on the season, as they own several properties, both on the beach and in the mountains.” But they have one Base to which they return, which is usually in a European capital.
Compared to other European cities, prices per square meter in Madrid “still have a long way to go to continue to grow,” as there are neighborhoods, such as some in the center, that are still being upgraded. According to the report, you already pay 13,500 euros for a premium square meter in the Salamanca district and Da Mosto is convinced that it will soon be 14,000 euros.
This is exactly the area mentioned in the report when it comes to the increasingly widespread trend towards luxury serviced properties. “Currently, the residences of the Mandarin Oriental hotel chain in the Salamanca district are the best of the best and were sold unscheduled in record time for more than 20,000 euros/m²,” the dossier says
The report also has a section on destinations to consider, of which Barcelona ranks fifth. He assures that the Catalan capital “offers excellent investment opportunities, both for first and second homes as well as for the rental market.” The price-performance ratio is optimal, although in 2023 the average price per m² and the transaction volume have increased slightly. Tourism, in turn, recovered this year. So the prospects are excellent, especially since the America's Cup will be held here in 2024 from August to October.
As for the profile of buyers, it is noticeable that in 2023 a new American clientele will arrive, mainly Californians “who are moving away from the United States for political reasons and who appreciate the Mediterranean lifestyle of Barcelona.”
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