As one of the most interesting European locations for real estate investment, Madrid property offers foreign investors an attractive proposition with the value for money the city offers, as well as its outstanding quality of life and rewarding, long-term return.
As Spain’s capital and largest city, Madrid is known throughout Europe for its thriving culture and its economic and political significance. The city has a population of almost 3.2 million, making it the third largest in the European Union. It enjoys a high standard of living, plenty of historical sites and places of cultural interest. Cultural landmarks include the Royal Palace, the Teatro Real de Madrid and three museums of world renown: the Prado, the Museo Nacional Centro de Arte Reina Sofía and the Thyssen-Bornemisza.
As the capital of the country, Madrid is the seat of Spain’s government and its ministries, the Supreme Court, all major embassies and consulates, and is home to Spain’s Royal Family. This all translates into a large number of officials who live in the city and influence the real estate market. With all of the public offices and the political influence exerted, investment is robust and a tremendous boost to the economy.
Madrid is Spain’s business, financial and economic centre. The community has the highest number of businesses in Spain (more than 500,000 companies in operation), and the vast majority of Spanish companies and many international businesses have their headquarters here. One out of every five businesses created in Spain is based in the city of Madrid and of the top 2,000 Spanish businesses, 72% are based in Madrid.
It is also a hub between Europe and Latin America, with about 4% of all GDP in Latin America managed by companies situated in Madrid. Cemex, Havaianas, Gerdau and Softtek are just some of the international institutions and companies that are headquartered here.
Madrid is the 3rd European city and 8th worldwide for multinational operational headquarters that include BBVA, Endesa, Repsol, Santander and Telefónica. It is also home to the Spanish Stock Market, one of Europe’s busiest, and Latibex, the only international market dedicated to Latin American equities. Latibex is regulated by the Spanish Securities Market Law.
The strategic location of Madrid in the centre of the Iberian Peninsula has greatly attracted the attention of foreign investors. Madrid is an excellent link between Europe and South America, North Africa and the Middle East, thanks to historical connections and practice, and its privileged geographical position.
Enjoying highly developed transport infrastructure, the city has one of the busiest airports in Europe and an extensive network of roads and railways, including Spain’s high-speed AVE train. With a throughput of nearly 42 million passengers in 2014 and a capacity for 70 million annually, Adolfo Suárez Madrid-Barajas Airport is a major economic driver for the city and Spain as a whole. As a first-class European and international airport, it offers connections to more than 170 destinations on the five continents, on 80 airlines.
In terms of real estate activity and value of investment, Madrid is a world leader. Total sales records reached €6,347 million between June 2014 and May 2015, an increase of 164% from a year earlier. That was enough to win for Madrid the top spot in global rankings for investment growth, according to a study by the Cushman & Wakefield consulting firm.
Investors are also drawn by the excellent selection of private and state schools, both local and international, including the American School of Madrid, the British Council School and the Hastings School. Madrid is also home to IE Business School, which is considered one of Europe’s leading business schools by international media including The Financial Times, The Economist, Wall Street Journal and América Economía.
There is an extensive range of property for sale in Madrid to suit every lifestyle, from prestige penthouses and modern city apartments in desirable areas such as Barrio Salamanca, to substantial family homes in the exclusive La Moraleja and Aravaca neighbourhoods.
As a landmark European city, Madrid real estate consistently attracts wealthy buyers from throughout Spain, and with increasing interest from foreign investors, the city is certainly a location of choice for global property investment. International buyers come mainly from South America, including Venezuela, Mexico, Peru, Argentina and Colombia. They are joined by buyers from the United Kingdom, Northern Europe, China and the Middle East, who are showing increasing interest in the improving Spanish property market.
For those looking for a great lifestyle investment, Madrid – as one of the world’s major global cities – is difficult to beat.