The profitability of the luxury sector in major US cities such as New York, San Francisco and Miami is declining, prompting prominent investors from North America to explore alternative cities for their projects. According to the luxury real estate agency K&N Elite, Madrid is one of the destinations attracting their attention.
The Spanish capital has become an attractive hub for luxury and ultra-luxury homes, new office developments, and, particularly, the emerging trend of branded residences. This is due to the stability of the real estate market, moderate interest rates and the strong demand for housing currently seen in the country.
"For years, Madrid and certain regions of Spain have been highly attractive to international companies, investors and local buyers from various nationalities with substantial purchasing power," says Rafael Santana, director of K&N Elite Madrid. He adds that they are currently working with "clients from New York and Miami who view Madrid as a highly profitable area for real estate investment."
Madrid market
Santana says that the rise of American investors with great purchasing power in the Spanish capital is due to various social and economic aspects.
Firstly, the real estate company highlights Madrid’s excellent quality of life and the growing European influence it has gained in recent years, positioning it as the preferred destination, just behind London and Paris.
On the other hand, international investors are particularly concerned with the consolidation of North American investment banks in Madrid, driven by the rise of the luxury real estate sector. This trend further reinforces the city's robustness and appeal as a key investment hub.
Branded residences
It is worth noting that branded residences are exclusive houses or flats that provide the finest comforts typically found in a prestigious hotel.
This new model has firmly established itself in the city, which is why many luxury investors are turning to this sector, as it offers high profitability.
Offices and shopping centres
Two other sectors that are recovering in Spain and its capital are offices and shopping centres, which, according to K&N Elite, "are seeing positive changes in Madrid, leaving behind a period of decline."
Finally, Rafael Santana emphasised that the "Madrid market is becoming increasingly specialised in the luxury housing sector, and these trends reflect the robustness and strong economic conditions of the market."