If we compare the price of real estate in Madrid to other European capitals such as Paris, London or Amsterdam, apartments in Madrid still sell at a discount. According to the Deloitte 2025 Property Index, the average price of residential real estate in Paris is 10,760€ per square meter. The average price of real estate in London is 8,252€ per square meter and in Amsterdam it is 8,475€ per square meter. In contrast, the average price per square meter of residential real estate in Madrid is 5,990€. Furthermore, strong demand has turned the Madrid market into one of the most attractive for investors seeking to purchase properties with strong potential for capital appreciation.
Three reasons to invest in apartments in Madrid
If this data does not entice you, here are three reasons why Madrid is an excellent place to buy apartments, even given the recent price appreciation.
1-Madrid real estate is in high demand
Madrid continues to attract people from all over the world due to its increasingly international profile. This keeps demand for Madrid apartments strong. Latin American buyers — particularly from Mexico, Venezuela and Colombia — remain the largest group of international investors, drawn by the city’s stability and lifestyle. At the same time demand from U.S. buyers has surged, especially among families seeking access to international schools.
International business are drawn to Madrid
Madrid has become attractive for many reasons. Aside from the continued strong demand from people in Latin America, the city benefited greatly from Brexit. Before Brexit, London was the center for back-office processing for EU financial transactions. The loss of “passporting” rights for UK firms to operate across the EU forced many financial services companies to restructure, including relocating some back-office functions and personnel to EU countries. Paris was the clear winner, but Madrid also benefited greatly.
Due to its business friendly environment, relatively low cost of commercial real estate and excellent infrastructure, many companies are choosing to place their head offices in Madrid. For example, Google has a significant presence and campus in the city, McKinsey & Company has a large consulting office in Madrid and Microsoft operates a major cloud region in Madrid. All of the executives and employees in these offices require housing.
American wishing to expatriate are coming to Madrid
Another source of demand for apartments in Madrid is Americans. Many people from the US wish to emigrate due to political problems and uncertainty about the country’s future. In the first three quarters of 2025, they were Madrid Estate’s largest client group. Many of them come with their families, attracted by the excellent selection of international schools in Madrid. Interestingly, unlike our clients from many other countries, they wish to live in Madrid’s vibrant city center, as opposed to the suburbs.
This influx of expats has dramatically changed the city. Once a very Spanish, provincial feeling town, Madrid has morphed into an exciting international metropolis. More and more people speak English, tantalizing new restaurants open every month and high power executives and celebrities are making the city their primary residences.
Since the capital is reinventing itself, there is large potential for the real estate market to achieve higher valuations in time, resulting in great capital appreciation potential for investment properties. Additionally, properties inside the M30 have great potential for medium and long-term rentals.
2- Madrid has apartments for all tastes
It is not a secret for anyone that loves Madrid that the city seamlessly combines the traditional with the modern. There is a large variety of architectural styles, layouts and interiors so every investor can find something to suit their tastes and investment criteria.
What’s new?
The large influx of expats has dramatically changed the apartment stock in Madrid. Historically, homes were dark with many small rooms. The furnishings tended towards family heirlooms. However, this was not to the liking of most foreigners. Their tastes, and generous budgets, has created a new stock of luxury apartments in Madrid. Walls have been knocked down, light let in and appliances upgraded to top of the market models.
In the suburbs, new stand alone homes have been built in luxurious gated communities attracting international movie stars, professional athletes and C-suite executives.
Older apartments in areas that were previously second tier real estate have been renovated for students.
Regardless of what you are looking for, you will find a property to match your lifestyle and/or investment profile. Madrid Estate has access not only to listed properties, but much sought after off market properties. Our Founder, Fabiana Greci, can help you find the property that perfectly suits your needs. Don’t hesitate to contact her directly at fabiana@madrid-estate.com or WhatsApp +34 680 306 337
3-Madrid has a stable political environment
Political unrest and turmoil is plaguing much of North and South America. Wealthy Venezuelans have been expatriating for years. 2025 amps up the pressure with the Trump administration massing warships off the country’s coast.
Unrest and uncertainty isn’t confined to Venezuela. The economy of Ecuador is in a precarious position and Argentina is gradually joining the authoritarian wave sweeping the world. The problems are no longer confined to South and Central America. Due to drug trafficking related violence, Mexico is now one of the most unsafe countries in the world and the United States is undergoing extreme political unrest and structural change.
Spain, on the other hand, has a very stable government. Spain is currently governed by the PSOE, a left leaning political party. The City of Madrid, on the other hand, is ruled by the People’s Party, a conservative and Christian democratic political party. The interplay between these parties leads to a large degree of stability. From a broader perspective, Spain itself is an inherently conservative country where change can be slow to happen. This presents an attractive environment for doing business and living a safe, peaceful life.
Conclusion
