Wealthy Foreign Investors Drive Madrid’s Luxury Real Estate Boom

According to data from the real estate agency Barnes, 86% of luxury rental properties in Madrid belong to Spaniards. The remaining 14% are properties owned by Moroccans, Venezuelans, Guatemalans, Mexicans, Germans, French and Russians. This percentage could be reversed in the coming years, warns Barnes, who indicates that 92% of clients in the luxury real estate market in Spain are foreigners.

In the Los Jerónimos neighborhood, in the heart of Madrid, the rental price of a property has reached 25,000 euros per month. A record in the Spanish capital, notes Infobae. In the most prestigious neighborhoods of Madrid, prices range between 3,000 and 8,000 euros per month on average. Retiro comes out on top with an average price of 7,843 euros per month, followed by Salamanca with 5,081 euros, Chamberí with 3,293 euros and downtown Madrid where rental housing prices are 3,076 euros.

The outlook indicates stronger demand for this type of housing from both nationals and foreigners, which could strengthen Madrid’s position as one of the most sought-after destinations in the world for luxury property rentals. The same trend is observed in other regions of Spain such as the Costa del Sol, Barcelona and the Balearic Islands. Conversely, this enthusiasm for luxury real estate could make these cities less viable for those wishing to rent an apartment at a reasonable price.

Barnes also reports that nearly half of the tenants of these luxury homes in Madrid, or 49%, come from outside Europe. Among them are nationals from South America (30% of the total), North America (9%) and Asia (8%).