The fever for acquiring a luxury home in Madrid has intensified in recent years following the arrival of Latin investors, who continue to strongly bet on the capital.
The oft-repeated mantra that Madrid is the new Miami is gaining ground, and the city is already a magnet for investors from around the world, not only from Latin America but increasingly from the United States who are fleeing the country following Donald Trump's victory.
The trend continues to rise, and the city has established itself as a strategic destination for those looking to protect and expand their assets in a safe and stable environment. Furthermore, Madrid has already surpassed Paris and is the second destination for real estate investment in Europe, only surpassed by London, according to the latest study by the consulting firm PwC and the Urban Land Institute.
As an example, data from the consulting firm CBRE highlights that real estate investment from Latin America reached a record volume of 523 million euros in 2024, tripling the investment recorded in 2023.
This figure only covers large real estate transactions and does not include individual sales, which would significantly increase that amount. Over the past six years, Latin American capital invested in the Spanish real estate sector has exceeded 1.75 billion euros, and forecasts for 2025 continue to point upwards.
"The reasons for this phenomenon are multiple, but there are two key factors that explain this exponential growth. The economic and legal stability of Spain compared to the uncertainty in some Latin American countries and the high profitability of the real estate sector in Madrid, which continues to offer attractive opportunities, both in the residential and commercial markets," says Felipe Reuse, general director of Property Partners in Spain, a Chilean real estate agency that aims to have 30 offices in Spain within five years.
The political shift towards more interventionist left-wing regimes in Brazil and Chile is accelerating this phenomenon. In fact, Brazilians were the largest investors last year (43% of the total), followed by Mexicans (40%) and Venezuelans (15%).
Renovated property sold by Fives Real Estates in the Barrio de Salamanca.
The profile of the investor has been changing over time. While in the past, the Latin American buyer only sought a second residence to spend time in Madrid, currently, this investor has a more strategic and ambitious vision.
For this reason, they partner with local agents or other entrepreneurs from their country to acquire entire residential buildings for renting or to start their own developments.
These businesses are not limited to the residential sector, as offices accounted for nearly 50% of investments, followed by hotels (21%), shops (18%), and homes (11%), according to Miguel Moraes-Palmeiro, director of the Latam-Iberia Platform at CBRE.
REITs specialized in Latin investors
The race to acquire the best premium apartments on the market - which are very scarce - has boosted the activity of REITs or real estate agencies specialized in the VIP client from Latin America, such as Blossom, Fives Real Estate, Property Partners, Factum, or BeGrand.
Additionally, many of these investors have already created their own businesses, as is the case with the Venezuelan Capriles family, who founded Orinoquia Real State in 2017. This company rehabilitates buildings in prime locations for residential and tourist use. One of their latest projects was the acquisition of a property on Bretón de los Herreros street to convert it into 12 luxury apartments.
While these buyers have always had their sights set on the Barrio de Salamanca, Las Salesas, Los Jerónimos, or Chamberí, the truth is that in recent times they are moving away from the city center to buy larger villas in the most exclusive developments in the region, such as La Moraleja, La Florida, or Las Lomas, as pointed out by David Rubio Martínez, general director of the Blossom Real Estate consultancy.
In fact, this agency is currently marketing villas of 1,104 square meters in the Montepríncipe development - located in Boadilla del Monte - for four and a half million euros with premium services.
"There is a great demand for this type of housing and very little supply. Latin clients enjoy spectacular homes in their countries, some even with helipads on the rooftops, and we were not accustomed to these mansions here. Now, this type of residence with the highest quality is increasingly being offered," says Rubio.
Fives Real Estate is another agency specialized in this sector that offers comprehensive assistance: advice, real estate transactions mostly for renovated properties, and even moving and cleaning services. In recent months, they have experienced a boom in apartment purchases following the end of the golden visa - which allowed obtaining residency permits with the acquisition of properties worth 500,000 euros.
However, Javier Fernández Domenech, one of the four partners at Fives Real Estate, does not believe that the conclusion of the golden visa program will slow down this investment surge. "In the past year, our sales to this type of clients have tripled. They demand properties that are increasingly difficult to find," states Fernández Domenech.
Therefore, one of their specialties is acquiring properties from the 25,000 inheritances that occur each year in Madrid, as many relatives want to sell them. Fives Real Estate takes care of a comprehensive renovation with the highest quality standards and sells them to Latin buyers.
"We handle the complete rehabilitation, allowing the seller to earn 25 to 30% more than the initial cost of their residence," he explains. These homes are not even listed on specialized portals but are transferred through contacts.
In fact, there are also many young Spanish investors dedicated to this business, buying an apartment for 300,000 euros, renovating it, selling it, and making around 50,000 euros to reinvest.
All this phenomenon is driving up sales and rental prices, so David Rubio, director of Blossom, does not rule out that in a few years, the price per square meter in Madrid could reach 30,000 euros per square meter. This is already happening in cities like London, Paris, and New York, where it is almost impossible for local citizens to reside in the city center.