The Spanish capital is undergoing a transformation driven by the growing investment of wealthy Latin Americans, especially Mexicans. The purchase of luxury properties, the opening of exclusive restaurants, and the arrival of new businesses are reshaping the city and elevating its status as an elite destination.
A clear example of this trend is a real estate project on Calle Padilla, in the upscale Salamanca district, where more than half of the apartments were purchased by Mexicans. With prices reaching up to €3 million, this reflects the strong interest of Latin American investors in Madrid. Since 2020, Mexicans have invested more than €700 million in Spanish real estate and construction, solidifying their presence in the city.
The main driver behind this phenomenon is the growing political and economic instability in Latin America, which has led to an unprecedented capital flight. In 2022, the region’s five largest economies saw approximately $137 billion leave their markets, with many investors choosing Madrid over Miami due to cultural and linguistic ties.
The impact of this wave of investment is being felt across the city. Luxury property prices have risen by 6% in the past year, surpassing most major European capitals. In Salamanca, high-end restaurants are opening at a rapid pace, and reservations start earlier than usual—something uncommon in a city where dinner traditionally begins no earlier than 9 p.m. Additionally, locals are adapting to new dining customs, such as time limits at tables, a practice more common in New York than in Spain.
Madrid is attracting not only those looking for a second or third home but also entrepreneurs seeking new opportunities. High-profile figures such as Carlos Slim and Carlos Fernández González have invested in the Spanish real estate sector, while banks like BBVA and Santander have strengthened their services for ultra-wealthy clients. International luxury brands, such as the Robuchon group, have also arrived, and the reopening of prestigious hotels like the Villa Magna has reinforced the city's appeal to the global elite.
The "golden visa" program, which grants residency permits to those who invest at least €500,000 in real estate without financing, has facilitated this influx of capital. Moreover, new investors are not just buying properties—they are also developing real estate projects in neighborhoods like Salamanca and Chamberí.
Madrid is beginning to compete with cities like Paris and Berlin in the luxury market, but with more attractive prices. One million dollars can buy 106 square meters in the Spanish capital, compared to 43 in Paris or 70 in Berlin. This boom has even forced Spanish companies to relocate, such as GBS, which after 30 years in Salamanca must vacate its offices because the owner plans to convert them into luxury apartments.
Beyond the economic impact, the arrival of these investors is transforming life in Madrid. Traditional late work hours, long lunches, and afternoon siestas are giving way to a faster-paced rhythm, more typical of other global capitals. As Ximena Caraza, director of Casa de México, points out: “Madrid used to be a city where everything closed for hours in the afternoon. That’s no longer the case.”