Madrid and luxury real estate: a pairing driven by private capital

It is an incontrovertible fact. Madrid is positioned as the second most attractive European city to invest in real estate, according to the ranking prepared by PwC and the Urban Land Institute (ULI). This recognition reinforces the growth trend experienced by the Spanish capital in the luxury segment, where the price per square metre has reached 25,000 euros in some exclusive developments.

Experts believe that the Madrid market will continue to grow in 2025, driven by international buyers, mostly from Latin America (Mexico, Colombia, Venezuela) and the United States. Emblematic areas such as Salamanca and Chamberí are attracting the interest of these large fortunes, who value the quality of the finishes, the exclusive amenities and the legal security offered by the city and the Community.

According to the profile of foreign investors, many use these properties as a temporary first residence or as a home for their children studying in Spain, with tickets worth around 2.5 million euros, double the average investment of nationals.

DEXTER has been providing private capital, in financial terms, for more than five years, and has been channelled through bridging loans with mortgage guarantees in a very high percentage of cases. "These foreign clients may have assets outside Spain but here, in our country, banking operations are not always easy and agile, which is why investment funds, through debt funds, provide them with one-off liquidity for 12 or 24 months, in the knowledge that these entrepreneurs have ample capacity for repayment".says Alfonso Merlos, vice-president of the company.

Madrid's intrinsic features, its always innovative and cosmopolitan approach, its attractive residential and hotel offer, its vibrant cultural life... are all factors that make the capital of Spain continue to attract foreign capital. In the present and in the future.