75% of Latin American Real Estate Investment Ends Up in Madrid

PUBLISHED ON

Junio 26, 2025

CATEGORY

Real Estate

€400 million from Latin America was invested in Madrid in just one year

Spain is one of the preferred countries for Latin Americans when it comes to real estate investment. Specifically, Madrid has once again positioned itself as the top destination, as 75% of Latin American investment in luxury housing and office purchases is concentrated in Spain’s capital.

It is worth noting that real estate investment in Spain from Latin America reached a volume of €523 million in 2024. Of that amount, Madrid alone absorbed over 75%, with €400 million invested in just one year.

As a result, Spain has emerged as one of the leading destinations for Latin American real estate investment, consolidating its position as the gateway to the European market. Madrid, in particular, has become the epicenter of this trend, attracting investors looking to expand their assets in a stable environment with growth potential, according to the report “Latin American Investment in Spain 2024” by CBRE Group.

Latin American Real Estate Investment

Latin American investment in Spain’s real estate sector reached €523 million in 2024, a figure that triples the previous year’s and is more than 20 times higher than pre-pandemic levels. This sharp increase reflects growing confidence among Latin American investors in the Spanish market, where they have invested over €1.75 billion since 2019.

According to the same report, Madrid accounted for more than 75% of Latin American real estate investment in Spain in 2024, which equates to around €400 million. This has made Madrid a magnet for acquiring offices, shopping centers, and most notably, luxury housing.

This investment boom has been driven by several factors, including the high quality of life in cities like Madrid, cultural and linguistic affinity, and fiscal incentives such as the so-called Mbappé Law, which grants a 20% personal income tax deduction for foreigners relocating to the capital.

“In recent years, we’ve seen a shift in the way Latin American clients approach their investments in Spain,” said Felipe Reuse, Managing Director at Property Partners.

“Previously, buyers were primarily seeking second residences in major cities with a more asset-preservation mindset. Now, we’re seeing a more strategic investor with a clear interest in income-generating assets,” he explained.

Moreover, the influx of Latin American investment in Spain is reshaping the country’s real estate market, bringing a long-term results-oriented vision. As a result, this has led to a more diverse pool of buyers and improved the quality of offerings.