After the end of the pandemic, Madrid has transformed into a magnet for affluent migrants seeking new opportunities. Local residents quickly noticed a surge in demand for restaurant reservations and a consequent rise in rental prices.

This trend is not solely driven by tourism. Research from Barnes Global Property revealed that Madrid ranked fourth on the list of cities most favored by individuals with a net worth exceeding $30 million.

South Americans are among the key drivers of this growing interest in Madrid, accounting for the majority of luxury property buyers in the city, surpassing British, French, and American buyers.

Entire buildings in the prestigious Salamanca district—one of the most expensive neighborhoods in Spain, historically dominated by local elites—have been purchased by Mexican and Venezuelan investors. Some Venezuelans have even nicknamed Madrid “Little Caracas.”

Mexican investments in Spain’s real estate market have exceeded €700 million since 2020, with the majority concentrated in Madrid, according to Spanish government data on foreign investment.

Madrid’s mayor, José Luis Martínez-Almeida, highlighted that the city’s attraction of Latin American talent and capital mirrors what occurred decades ago in Miami. He predicts that Madrid will eventually surpass the American city in this regard.

However, this phenomenon brings challenges, such as rising rents, which have forced many Madrileños to leave the city center and their traditional neighborhoods.

The Spanish capital is the preferred destination for Latin American migrants seeking work in a country where the language is familiar. Madrid has welcomed workers from countries like Peru, Ecuador, Colombia, and others, who find opportunities in sectors such as elder care, construction, and other fields with labor shortages.

Several factors have contributed to Madrid’s rise as an attractive destination for Latin American migrants. First, Madrid offers exceptional quality of life, with high-quality public services, a vibrant gastronomic scene, an efficient public transportation system, and, above all, the sense of safety provided by living in a country with low crime rates—something especially valued by those coming from regions where safety is a constant concern.

Additionally, Spain and its capital provide a favorable environment for safeguarding financial assets against governmental uncertainties and monetary instability, with the euro being a solid and stable currency compared to many Latin American currencies.

There are also more subjective factors contributing to Madrid’s appeal, such as a sense of belonging and comfort. As exemplified by Eladio Duque, a Venezuelan who lived in Miami for 12 years before moving to Madrid, many find in Madrid a feeling of “being at home” from the very first day, something they may not have experienced elsewhere. This sense of belonging can be crucial for those seeking a new home far from their native land, especially in times of political or economic instability.

Eladio plans to apply for Spanish citizenship soon, a process much faster and simpler than in the United States. Spanish law allows Ibero-American citizens to apply for nationality after just two years of legal residence in the country, with residence visas also being more accessible than in the U.S.

For those with substantial purchasing power, there are additional benefits, such as the recent 85% reduction in university tuition fees for Ibero-American students in Madrid, announced by the regional government.

According to Vilanova, “Spain is surpassing the United States as the destination of choice for raising the children of Latin American business leaders,” with differences in immigration policies between the two countries being one of the primary reasons for this shift.

Rangel notes that most of his clients initially consider Miami as a destination due to family ties or previous visits but soon realize that the U.S. has tightened its legal migration policies.

For those wanting to start a business, this means investing large sums, hiring employees, taking on projects over which they have little control, and facing long waiting periods for processing.

Mexican Carla Chanes decided to move to Madrid out of fear of falling victim to crime in Mexico City. While crimes such as phone and wallet theft occur, especially in the city center and busy tourist areas, Madrid is generally considered safe, with a low crime rate.

Carla and her family live about 30 kilometers from Madrid, in the historic city of Alcalá de Henares, famous as the birthplace of Miguel de Cervantes. Her daughter attends a private school subsidized by the regional government, where tuition costs just €40 per month—much less than a private school in Mexico.

While waiting to obtain Spanish citizenship, Carla’s family is sustaining themselves with savings and rental income from their house in Mexico. Carla describes the beginning of her stay in Madrid as challenging, but over time, she overcame the constant fear that something might happen to her son while they were out on the street.

However, while Carla feels warmly welcomed in Madrid, some local residents are starting to notice rising living costs in the city.

Andrés Pradillo, spokesperson for Madrid’s Tenants’ Union, points out that the phenomenon of foreigners buying property in the city is growing disproportionately.

“Rents in the city have increased by 60% since 2015, and many families now spend more than half their income solely on housing,” he notes.

Moreover, more than half of the homes sold in Spain last year were paid for in cash, indicating a booming real estate market, possibly out of reach for many local residents.

According to Pradillo, this trend suggests that these properties are not being purchased for residential purposes but rather for real estate speculation, aiming for high profits in areas with very high rents.

Mayor José Luis Martínez-Almeida acknowledges that, like in other major cities, housing is a significant challenge in Madrid.

However, he emphasizes that the arrival of people with investment capacity can be a positive opportunity for the city, provided the risks, such as a potential increase in inequality, are addressed appropriately.

The mayor also announced plans to sell public land to real estate developers to build affordable housing to help address the city’s housing crisis.

Although new urban developments promise to offer 10,700 subsidized homes with 60% government funding, it remains unclear whether this will be enough to alleviate the housing shortage.

In recent years, Spain has seen the emergence of a new profile of Latin American migrants characterized by greater financial comfort. While job-seeking migrants continue to arrive, there is a growing presence of individuals with significant resources.

According to Alexandre Rangel, general director of Siespaña, a company specializing in advising foreigners wishing to settle in Spain, most clients looking to emigrate to the country are affluent individuals who do not necessarily depend on generating local income.

A few years ago, Spain witnessed the arrival of notable Latin American billionaires, such as Mexican Carlos Slim, who acquired a significant stake in FCC, a Spanish infrastructure giant, and Venezuelan banker Juan Carlos Escotet, who now controls Abanca, one of the country’s major banks.

However, as Nuria Vilanova of Ceapi (Association of Ibero-American Business Executives) notes, there is a new wave of investors interested in opportunities that do not require substantial capital, with many opting to invest in areas such as purchasing properties for tourist rentals.