Big national and international investors are shifting their capital focus towards Madrid, moving partially away from traditional coastal markets like Costa del Sol and Costa Blanca. This trend, noticeable over recent years, accelerated strongly in 2024 and looks set to dominate 2025.
Madrid Emerges as Europe's New Powerhouse
According to CBRE, real estate investment in Spain surpassed €18 billion in 2024 — with over 35% flowing into Madrid alone. This performance places Madrid second only to London among Europe's top property investment destinations.
What's Driving Investors to Madrid?
Greater market stability compared to seasonal coastal areas, strong rental returns (4.5% to 6.5% annually), and a wave of luxury developments — including historic restorations and branded residences — are fueling the capital's appeal.
Luxury Hotspots Heating Up
Prime districts like Barrio de Salamanca, Chamberí, and the historic center now concentrate 65% of premium transactions. Prices for high-end properties range from €1.8M to €16M, with the average reaching €13,000 per square meter — outpacing even Costa del Sol.
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