Increasing numbers of NYC based investors are choosing Madrid for a spectrum of reasons. It’s not just to escape the current political environment in the US. This article walks you through all the reasons New Yorkers are investing in Madrid.
Spain offers economic and political stability
Many people in the US are very concerned about the current political environment in the US. As Elon Musk and his team purge the government of workers and close entire departments, and Donald Trump plays his tariff games, the political environment is increasingly unstable. Moreover, the stock markets are reeling from the tariff uncertainty and US foreign policy changes. Inflation, which Jerome Powell seemed to be getting under control, is once again on the rise. This, combined with consumer spending cooling off, has the early makings of stagflation, which is very tricky to rein in.
In addition to the economic and political stability facing natural born US Citizens, legal residents and even Green Card holders now face the risk of being deported. Given the increasing number of legal residents being deported for political beliefs, many residents and Green Card holders, and even legally naturalized US Citizens, are very worried about being deported for no apparent reason whatsoever. NYC is the most diversified major city in the United States. According to the NYC.gov website,
“New York City is home to about 3.1 million immigrants, who comprise about 38% of the city’s total population. Among New York City’s foreign-born residents, more than half are naturalized citizens.”
And this is only counting legal residents. As NYC is a “sanctuary city,” there is a very large number of people living there without the proper immigration paperwork, or with expired paperwork. Many of these work in restaurants, one of the most attractive aspects of the NYC lifestyle. All of these factors are causing many New Yorkers to look for an alternative place to live. Since NYC is so different than the rest of the United States, many of them are seriously researching moving to Europe. Even though Spain is eliminating its golden visa program on April 3, 2025, there are other very attractive options for becoming a legal Spanish resident, and eventually obtaining European citizenship.
Added to the relative ease of obtaining Spanish residency, Spain offers a very stable political and economic environment. Essentially there is a political gridlock between the major political parties, which means it is very difficult (if not impossible) for any radical political or fiscal measures to be enacted.
Lifestyle Factors
More relaxed environment
Although NYC offers an incredible lifestyle in terms of museums, galleries, restaurants and theater, there are some drawbacks. There is the intensity . . . although it is extremely vibrant, you always have to be “on” if you live and/or work in the city. Everything is extremely competitive, and you are competing with the world’s best. The work life is intense; rarely anyone works a mere 40 hours a week. After awhile this gets exhausting and many start looking for more relaxing options. This is particularly true post-Covid, when many can continue to work remotely. Madrid, on the other hand, offers a much more relaxed lifestyle. On a sunny day, there is always time to sit outside on a terraza and enjoy a coffee, beer or vermouth.
Easier transportation
The public transportation system in Madrid is excellent. The subway is clean, efficient and rat-free (which we certainly can’t say about the MTA). If you wish to own a car, almost all luxury buildings have their own parking. If you live outside the city, you can drive in for free as there are no congestion charges.
Wish to take a day or weekend trip? The high speed rail system can get you to a beach in Valencia in just under two hours. International travel is also much easier than from NYC. The security lines at Madrid’s Barajas airport are almost always much quicker than those at JFK and Newark and you can get anywhere in western Europe in two to two and a half hours. Exotic Morocco is also only two hours away.
More sunshine
NYC can be very dreary in the winter. The lack of sunlight can easily induce seasonal affective disorder. Madrid, however, is one of the sunniest cities in Europe. It averages 335.1 hours of sun per month. Moreover, the winter temperatures are much milder, there is very little humidity and there are no Nor’easters.
Attainable luxury
NYC has some of the world’s best restaurants and most luxurious apartment buildings. However, this all comes with an extremely high price tag. NYC is consistently ranked as one of, or the, most expensive cities in the world. Madrid, on the other hand, is one of the cheapest European cities. The 2025 Cost of Living Index ranks it the 147th most expensive city in the world. You can go to Michelin Star restaurants or the theater in Madrid, and they are much cheaper than those in NYC. The most expensive restaurant in Madrid is DiverXO, where the tasting menu is 450€ per person. Three star restaurants in NYC are more than double this. Sitting at the sushi bar at Masa is $950 per person.
If you want to live in a luxurious apartment, Madrid offers extremely attainable options compared to NYC. In Salamanca, which has the most expensive real estate in Madrid, the average price per square meter is 8,993€ per square meter. The most expensive real estate in NYC is now found in Hudson Yards, where the average price per square meter is $23,917 per square meter; well over twice the price of that in Salamanca.
Would you like to learn more about attainable luxury in Madrid? Contact Our Founder at fabiana@madrid-estate.com or WhatsApp +34 680 306 337 to discuss the luxurious lifestyle Madrid offers.
Investment opportunities
Although prices have trended up post-Covid, Madrid still has some very attractive investment opportunities. It has something both for investors looking for a new home in which to live, and for those wishing to earn an excellent rental return.
Investors looking for second homes
NYC investors looking for second homes will likely want to focus on the more luxurious neighborhoods. In the city center, these neighborhoods are posh Salamanca, the more traditional Chamberí and elegant Justicia. Salamanca and Chamberí are excellent choices for investors that want to live in high end neighborhoods with all the amenities, but still want to preserve their investment capital. Beautiful Justicia, with its modern boutiques and Parisian vibe, also has very expensive real estate that continues to appreciate in value, but also has decent rental yields. This neighborhood would be an excellent choice for NYC investors that want to live in Madrid part time, but also return to NYC throughout the year as they could earn a respectable rental yield when they rent their apartment.
Outside the city center, leafy La Moraleja is a beautiful place to live. Located just 15 kilometers north of Madrid, it is arguably the most prestigious residential area in Madrid. The suburb is a magnet for movie stars (Richard Gere recently purchased a home here), diplomats, investors and Real Madrid players. It is a bit like the Beverly Hills of Madrid with its Michelin ranked restaurants, world class golf and verdant green neighborhoods. NYC based investors choosing Madrid with houses in Connecticut would be very comfortable here.
Investors seeking high rental yields
Even though prices have trended up in recent years, Madrid still has some of the highest rental yields in Europe. Less posh neighborhoods, such as student friendly Tetuán and up and coming Madrid Rio, are the best places for investors wanting to maximize their rental yields. We recently highlighted Tetuán as our favorite place for real estate investment in Madrid. In January 2025, the average price of real estate in Tetuán was 4,988€ per square meter: easily half that of prices in more luxury oriented neighborhoods. The best strategy here is to purchase older properties, renovate them and rent them to students. Madrid Estate clients earn between 4-5% net rental returns when they follow this strategy.
If you are a NYC based investor interested in purchasing luxury real estate in Madrid and need expert guidance, we invite you to schedule a consultation with Madrid Estate today!
Contact us at fabiana@madrid-estate.com or WhatsApp +34 680 306 337 to discuss your investment and relocation plans.
