Madrid has been named the world capital of the luxury real estate market, according to Barnes, which ranks cities by demand for premium homes. The Spanish capital has risen three places this year to claim the top spot, overtaking cities like Dubai and Miami, which held first and second place last year, respectively.
Madrid is not the only Spanish city featured in the ranking. Barcelona is placed 22nd, despite dropping three places, while Marbella has climbed 12 places to 35th.
Monaco ranks fourth, up from 12th, with Milan in fifth place after rising from 17th. The rest of the top 10 includes major cities worldwide such as Paris, New York, London, Rome and Austin.
Barcelona falls, but remains among the top 25
Madrid’s rise as a global leader is driven by its strong professional opportunities, supported by a large presence of multinational companies and its excellent quality of life. Factors such as the city’s climate, safety, healthcare system, rich cultural, culinary and leisure offerings, alongside an efficient transport and infrastructure network, all contribute to its appeal.
Among the most sought-after neighbourhoods, Barnes highlights Salamanca, Justicia, Chamberí, Chamartín and Cortes – areas where prices can reach up to €13,000 per square metre, with Cortes seeing values increase by as much as 30% in just one year.
“Madrid’s appeal as a high-end property market continues to grow. With a favourable investment climate and a steady rise in foreign buyers, the city is solidifying its status as a prime destination for luxury real estate,” said Alvise Da Mosto, associate director of Barnes Spain.
The Catalan capital has slipped three places but still ranks above cities like Lisbon, Los Angeles, Amsterdam and Beijing, thanks to its climate, quality of life and architecture.
Barnes highlights L’Eixample, Zona Alta and Costa de Barcelona as some of the city’s most sought-after neighbourhoods. These areas have seen rising demand in recent years, with prices reaching up to €8,000 per square metre, reflecting strong buyer interest and the stability of Barcelona’s real estate market, which continues to attract students, tourists and international investors alike.
The most exclusive city on the Málaga coast has climbed 12 places since 2024, marking one of the biggest rises in the entire index. This growth is driven by steady demand from international clients, who are also drawn by the city’s focus on innovation and cultural appeal.
