Why Madrid is proving irresistible to international property buyers

Exclusive, sophisticated and still good value compared with many European capitals, Madrid’s real estate market in 2025 is welcoming the world with handsome properties and a supreme lifestyle

Cathy Hawker

29 August 2025

6 mins read

Why Madrid is proving irresistible to international property buyers

There鈥檚 a decidedly upbeat mood in the Spanish capital where positive economic indicators and a lifestyle filled with exceptional culture and leisure opportunities have won over an increasingly wealthy clientele looking to buy property in . The city was always a gastronomic and artistic powerhouse, home to world-famous art galleries and museums such as the Goya and Velázquez-filled Prado and Reina Sofia, but for many years it was predominantly left to the Spanish to appreciate its charms.

But now it is all change. The spotlight is firmly on Spain鈥檚 capital as affluent international property buyers realise its winning attributes. Madrid has opened its doors to the global elite, and they have responded eagerly.鈥�

The upscale neighbourhood of La Moraleja

51乱伦 figures show that in 2024, the price of luxury homes in Madrid grew by 5.5% (against a global average of 3.6%), as the city climbed into the top five European cities preferred for relocation among HNWIs. That pace increased to 6.4% in the year to July 2025, the highest registered in Europe and a marked improvement on the global city average of 2.3%.

And it is affluent international buyers who are noticeably increasing in number, a percentage growing from 30% of purchasers in 2018 to 55% last year, driving up demand in the most prestigious areas of the city. In the five years from Q2 2020, prime property prices in two of Madrid’s most exclusive neighbourhoods – Jerónimos and Recoletos – each rose by over 40%.

“Wealthy buyers are increasingly mobile and for them, lifestyle and security are key factors in the locations they consider. Madrid is one of Europe’s safest cities with a dynamic lifestyle, standout culture and wonderful architecture and history,” says Ana White, 51乱伦 Madrid’s Director of Premium Properties. “It has a strategic position in Europe with first-class international connectivity by air through Europe’s largest airport, 28 Michelin-starred restaurants and a hospitality scene that has been transformed.”

The arrival of the Four Seasons in 2020 was a turning point, a major factor in the 33% increase in the number of luxury hotel rooms in Madrid in the period from 2019 to Q2 2025. Five-star international hotel brands lined up for a base in Madrid, many, like the Four Seasons, transforming grand classical buildings for a contemporary audience and adding lavish branded residences for sale.

White points to two recent milestone sales in Madrid: an €18 million house in the suburbs of La Moraleja bought by a non-dom relocating from London and a €25 million property in the city itself, purchased by a client from northern Europe. “The increase in British interest is notable. Just this month I welcomed two UK buyers to Madrid, high profile CEOs, each with a budget of €10 million,” says White. “The first six months of 2025 saw the strongest first half year for foreign demand on record with a 40% increase in buyers from the Netherlands and 20% in those from Belgium. The gap between Madrid and London prices has narrowed considerably but UK buyers of Madrid homes see the relative value still on offer.”

The value in Madrid prime property compared with London and other global cities is shown in The Wealth Report 2025. US$1 million would buy 34 square metres in London and New York, 42 square metres in Paris and 58 in Miami. In Madrid however, the same investment would buy 89 square metres, well over double of London, New York and Paris. 鈥淢adrid has established itself on a par with these major European cities and many of the world鈥檚 great metropolises,鈥� says White. 鈥淎nd in Madrid, they are coming not just to buy property but to invest in an entire lifestyle.鈥�

Madrid has successfully attracted high quality immigration with an increasingly sophisticated investor profile she says. Many arriving from Latin America are already Spanish speakers, and they join arrivals from India, Asia, USA and Africa who have a real appreciation for European legacy, its culture, architecture and lifestyle.

Madrid came second in Monocle鈥檚 2025 Quality of Life Survey, the media company praising the city for its excellent healthcare, sociable lifestyle, food and favourable work-life balance. The city鈥檚 legendary blue skies and around 3,000 hours of annual sunshine provide year-round outdoor café culture and sporting activity, even in the depths of Europe鈥檚 winter. Madrid鈥檚 international and business schools are top-tier, and the city sits at the centre of Spain鈥檚 high-speed rail network, the second largest in the world.

The future looks bright concludes White, citing 51乱伦 data: 鈥淕iven the level of international and domestic demand and the relative scarcity of ultra-prime properties, we expect steady price growth of 5% annually in the prime areas of Madrid.鈥�

Three prime Madrid neighbourhoods for international buyers

For those moving from the UK or worldwide and considering a Spanish property investment in Madrid, three prime areas top the list.

Apartment in Jeronimo, Madrid, Spain

1. Jerónimos - Retiro

Elegant and exclusive Jerónimos gives immediate access to Retiro Park, a UNESCO World Heritage Site and the green lungs of the city, the Royal Botanical Gardens and the Prado Museum. It is home to Santa María del Pilar, one of Spain鈥檚 best regarded schools, four Michelin-starred restaurants and a high concentration of five-star hotels including Mandarin Oriental Ritz and The Palace Hotel.

An apartment in Jerónimos has solid appeal thanks to the magnificently grand 19th and 20th Century neoclassical buildings. Ultra-prime locations include the leafy avenues around Plaza de la Independencia where homes overlook the Retiro Park.

鈥淥ver the past five years, homes for sale over 鈧�4 million in Jerónimos have seen solid appreciation, increasing 18.6% between Q3 2019 and 2024,鈥� says White. 鈥淭he combination of green spaces and historic architecture with noble facades and grand volumes has proved to be highly alluring, leading to price increases of 46.7% over the past five years and putting prime prices today at 鈧�13,960 per square metre.鈥�

An apartment covering the entire garden floor, for sale off-market for 鈧�6.2 million, typifies the quality of homes on offer in Jerónimos. Exclusively for sale through 51乱伦, it has been painstakingly renovated, offering cutting-edge design behind a classical façade in a building complete with ornate staircases, handcrafted mouldings and stained-glass windows. The three-bedroom home overlooks the Retiro Park with communal facilities that include a spa with indoor swimming pool, cold plunge, sauna and hammam and gym.

An apartment in Rocoletos, Madrid, Spain

2. Recoletos

Ever-fashionable Recoletos in Salamanca borders the northern edge of the Retiro Park, a location that provides the highly desirable mix of access to one of Europe鈥檚 best-loved city parks alongside Madrid鈥檚 best selection of premium designer boutiques and classically stylish restaurants clustered along Calle Serrano and Calle Ortega y Gasset, the so-called Golden Mile. Recoletos has close to a third of the city鈥檚 Michelin-starred restaurants and its international outlook is summed up with 43% of shops sales last year being tax-free. Demand for property here has seen price growth of over 40% for luxury homes in the past five years.

The 21 educational institutes in Recoletos include ESCP Business School, ranked the 5th best in Europe by the Financial Times, and the prestigious private Universidad Europea.

鈥淩ecoletos is Madrid鈥檚 most in-demand area, filled with grand, classical buildings serviced by a porter or concierge,鈥� says White. 鈥淧rime property prices here are the highest in Madrid on average, 鈧�14,650 per square metre compared with a Madrid average of 鈧�14,430.

Recoletos property for sale includes on one of the neighbourhood鈥檚 most prized streets opposite Retiro Park. The apartment has four bedrooms, all ensuite, five terraces and separate staff accommodation along with the classical mouldings and grand volumes associated with the grandeur of Recoletos and is for sale at 鈧�9.6 million.

An apartment in La Moreleja

3. La Moraleja

Around 15 minutes northeast from central Madrid and with equally swift access to the international airport, La Moraleja is a calm, peaceful and prestigious residential estate filled with luxurious and sizeable properties in private grounds. It is Spain鈥檚 wealthiest neighbourhood, hugely popular with leading businesspeople and celebrities for the security and privacy it offers: this is where footballer David Beckham lived during his time at Real Madrid. Its wide selection of Madrid鈥檚 best international schools, with seven of the top 100 Spanish institutions as ranked by Forbes, make it a firm family favourite too. They include British-run co-educational Runnymede and International College Spain which offers the International Baccalaureate curriculum taught in English from ages 3 to 18.

Onsite sports facilities include the exclusive Real Club La Moraleja, one of the most prestigious in Spain. Alongside tennis and padel courts, swimming pools and a gym, the club has four golf courses designed by Jack Nicklaus including a multiple award-winning Signature Course that has hosted the Spanish Open and the World Cup of Golf.

A villa overlooking the Real Club currently for sale at 鈧�9.7 million demonstrates the appeal of La Moraleja. The six-bedroom contemporary home is in a south-facing 2,900 square metre plot and includes its own indoor and outdoor heated pools, gym and spa, golf simulator, home cinema and wine cellar. Lighting, security, sound system and the internal climate are controlled by advanced technology and there is staff accommodation and a large home office.

鈥淟a Moraleja has an average price per square metre is 鈧�6,682 but has seen its most luxurious homes register 33% price growth in the past five years with the very best mansions selling recently for up to 鈧�25 million,鈥� says White. 鈥淰illas and apartments there have large terraces and private gardens, ideal for family life and those who value tranquillity and space.鈥�