Madrid has become one of the main destinations for prime residential investment, second only to London in Europe and ranking among the top four worldwide in terms of interest from Ultra High Net Worth Individuals. The capital is experiencing a boom driven by limited supply, sustained price increases, and demand from international clients as well as major Spanish fortunes. Key trends include branded residences, the rising appeal of new neighborhoods such as Chamberí and Justicia, the consolidation of Velázquez Street as the new golden mile, the entry of new players into the sector, and the sophistication of amenities. All of this confirms Madrid as an expanding luxury market, where investing means acquiring not only a financial asset but also a piece of history and art.

Elena Jori, Director of Real Estate at Home Select, explains how Madrid has established itself as the second most attractive European destination for high-end residential investment, only behind London. The restoration of historic buildings and new luxury projects, including branded residences, have drawn international investors from Latin America, the United States, and Europe. With steadily rising prices, top-tier cultural and leisure offerings, and an exclusive market with luxury amenities, Madrid positions itself as a city that combines investment, history, and lifestyle, approaching the standards of Paris.

Elena Jori, Director of Real Estate at Home Select, highlights the rise of luxury residential real estate in Madrid, with 2024 marking a record year. The Spanish capital has established itself as a key European destination for high-end investment, driven by emerging areas such as Malasaña and parts of Chamberí, where prices are rising rapidly. Limited supply and growing international demand, including buyers from Latin America, the United States, and Europe, further enhance the market's appeal. Madrid combines luxury, culture, gastronomy, and quality of life, offering unique opportunities for investors seeking exclusive properties and long-term appreciation.

The article analyzes the luxury real estate market in Madrid, highlighting the vision of Elena Jori, Real Estate Director at Home Select. It focuses on exclusive new-build or fully renovated developments such as Serrano 92, Núñez de Balboa 3, Velázquez 53, General Oraá 9, Santa Engracia 65, and Hermosilla 47 (Mandarin Oriental Residences), mainly in Barrio Salamanca and other prime areas like Jerónimos, Chamberí, Justicia, El Viso, and La Finca.

Madrid’s luxury market is booming, driven by limited supply and high demand, particularly from foreign buyers from Latin America, as well as national investors and some from the U.S. and France. Prices have reached record levels, with Serrano 92 standing out at €25,000/m² and the average for the prime market at €16,500/m².

Buyers are looking for spacious homes with premium finishes and luxury common areas, whether as a primary or secondary residence. Foreign families tend to opt for single-family properties in neighborhoods with good schools and socioeconomic stability.

According to data from Knight Frank’s Prime Global Cities Index, luxury housing in Madrid has risen by 5.5% annually in the third quarter, with stable growth expected over the next five years thanks to an international market, limited stock, and low interest rates. Regarding the prime rental market, prices are also increasing, albeit more slowly, with projections indicating continued growth due to the structural shortage of housing.