Ben Pawlowski
A NEW expert index comparing locations for high-net-worth individuals to invest has ranked Madrid as the hottest property market in Europe.
The 2024 Barnes City Index studied 50 cities across the globe for “practical, emotional and financial criteria” that included social life, business, taxation and culture.
The Spanish capital was placed as the best in Europe and the fourth best worldwide, only behind Dubai, Miami and New York.
According to Barnes, a leading property company, Madrid’s reputation for safety, stunning architecture, warm weather, high-quality healthcare, education and transport makes it a perfect destination for the super rich.
Furthermore, Spain’s largest city is home to an array of sizeable national and multinational companies, whilst also providing an impressive work-life balance thanks to its renowned food scene and litany of cultural attractions, such as the Prado Museum and Santiago Bernabeu.
Some experts expect prime property prices to leap by 6.5% in 2024, reflecting its attraction for investors.
Kelcie Seller from Savills World Research told The Times: “Expectations over the coming year remain positive with the continued influx of buyers from Latin America and increasingly the US”.
“Latin Americans have invested for several years but the city has had a further resurgence since Covid, with wealthy buyers now from the US, across Europe and the Middle East who consider it a safe place to park their money”, said Alexander Vaughan, the co-founder of the Lucas Fox estate agency.
Regarded as Spain’s sophisticated financial epicentre, Madrid is beginning to take the limelight away from Barcelona, its architecturally-magnificent and tourist-friendly cousin.
While property prices are similar between the two cities, Madrid’s prime real estate exceeds its Catalan equivalent by 20% in value.
Madrid also provides better value for money than many of its continental peers – a $1 million investment would secure a buyer three times as much space as in London, and over twice as much as in Paris.
Predictions state that from 2022 to 2027 the number of Madrid millionaires will increase by 30%, as high-net-worth individuals flock to the centre of Spain.
New fiscal measures introduced by conservative Madrid president, Isabel Diaz Ayuso, are providing further encouragement to willing investors.
Anyone moving to the city and investing in either real estate or financial assets for at least six years can deduct 20% of their investment from their municipal tax.
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