Large investment funds have been investing in buildings in Spain’s main cities for more than a decade with the aim of controlling the largest number of housing available and achieving the best profitability with increasingly affordable rents or holiday rentals.

But like the adventures of Asterix and Obélix, the Madrid neighborhood of Salamanca remained invincible to this investment excitement… until millionaire investors arrived from Colombia, Venezuela, Mexico or Peru. Now the neighborhood has become one of the sought-after neighborhoods of millionaires from all over the world, who see Madrid as the Miami of Europe.

The most traditional “Central Park”. In the late 19th century, José de Salamanca y Mayol dreamed of a neighborhood where the capital’s creamy bourgeoisie and wealthy society would come together. A century later, the neoclassical-style buildings and large apartment buildings that make up this neighborhood have become one of the biggest attractions for Latin American millionaires looking to invest in Europe.

These millionaires want to invest in the financial security that the Euro provides against the unstable currencies of Venezuela, Colombia or Mexico. They see Madrid as an alternative for luxury real estate investment that is much more affordable than other major European cities such as London, Paris or Rome. In addition to being one of the districts with the highest number of luxury apartments in the capital, the Salamanca neighborhood is also located on the border of Retiro Park, which resembles New York’s Central Park in the eyes of these millionaires.

200 meters, 3 bedrooms and furnished. Silvia and Cecilia Varela founded a real estate agency dedicated to providing apartments for investors of this profile. NewspaperTheir clients are looking for apartments with a minimum size of 200 square meters, 3 or more bedrooms and preferably fully equipped. Preference is for the Salamanca neighborhood, but it also includes surrounding neighborhoods such as Chamberí or Almagro.

If we take into account that the average price per square meter of this area is 7,990 euros, the final bill quickly rises to over 2 million euros. The investment is worth it, as the average rental price is around 2,000 euros per month, according to the real estate portal. Idealist.

This high profitability, as realtors say in the article, NewspaperThey sold apartments worth 4 million euros via video conference or WhatsApp, where the customer did not visit.

Price per m2 in Salamanca district

T4, Prado Museum and Bernabéu. Contrary to what happens with large fund investors, Latin American millionaires looking for housing in Madrid aim to live there for at least a few days a year, supported by a mild climate and privileged communications that allow them to visit other parts of the peninsula. easily.

Profile of the buyer of luxury apartments in Madrid. As highlighted SpanishMillionaires investing in Madrid are middle-aged, have assets between 50 and 100 million euros, have companies outside Spain, and make a living by managing their assets.

More than a place to settle, they see Madrid as a gateway to Europe, where they can travel to the old continent to strike million-dollar deals through Madrid’s golden mile, while enjoying the cultural and sporting opportunities the city has to offer. against the expectation of major finals and a World Cup like in 2030.

Call to Europe effect and “golden passports”. Over the past decade, Madrid has become the destination of choice for Latin millionaires who see in the Spanish capital the same appeal that Miami once had as an entry point to the United States. In this case, the pioneers were Venezuelan millionaires who fled Nicolás Maduro’s policies or Colombia’s insecurity, although they maintained most of their business in their home country. According to data from the Madrid Municipal Register, 7,633 of the 79,828 Venezuelans registered in the city reside in the Salamanca region. Mexicans are the fourth largest international community in Madrid.

Investment in such luxury properties, in addition to its profitability, makes investing at least 500,000 euros in a mortgage a key element in obtaining the so-called golden passports, which will speed up the processing of residence permits. Real estate in Spain. Again, this visa opens many doors when traveling and doing business in the European Union area.

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Image | Ansar Naib

*An earlier version of this article was published in October 2023.