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Tuesday, Mar 18, 2025

Madrid Rises in European Investment Rankings, Surpassing Catalonia

Madrid Rises in European Investment Rankings, Surpassing Catalonia

The Community of Madrid recognized by Financial Times for its foreign investment and quality of life policies in 2024.
The Community of Madrid is set to receive three accolades from the Financial Times on Tuesday, recognizing its economic and social policies for 2024. The prestigious ranking 'European Cities and Regions of the Future' has highlighted Madrid as one of the top ten regions globally, notably for its attractiveness to foreign investment and its quality of life.

Madrid has improved its standings compared to previous editions, overtaking Catalonia in the overall ranking.

Specifically, it soared to third place in the Foreign Direct Investment (FDI) category, up from eighth place last year.

In terms of human capital and lifestyle, the region also enhanced its position, placing among the top three regions.

Moreover, Madrid has been classified as the eighth best region in Europe in the overall ranking, advancing one spot from the previous year's results and displacing Catalonia, which ranked eighth in the 2024 edition.

The increase in Madrid's ranking reflects a successful economic model implemented in recent years, combining fiscal incentives and support for self-employed individuals and startups, solidifying Madrid's reputation as a key destination for international investment.

In 2024, the Community of Madrid attracted 71% of the foreign investment received in Spain.

According to figures presented by Councilor Rocío Albert, Madrid secured €17 billion in foreign investment, in contrast to Catalonia's €3.45 billion.

This means that out of the €23.6 billion in gross foreign investment received in Spain during the first nine months of 2024, Madrid captured 71%, while Catalonia obtained 14.6%.

This marks a significant shift in the national landscape, as Catalonia had historically led in attracting foreign investment compared to Madrid.

In the last ranking, Catalonia was placed fourth, significantly ahead of Madrid, which has now made substantial progress.

The Financial Times previously acknowledged Madrid's appeal in an article published on February 22, where it noted that “refugees from the Trump regime have fallen in love with Madrid,” choosing the city for its economic advantages.

The article highlighted the increasing number of U.S. citizens residing in Madrid, which reportedly approached 10,000, a 35% increase compared to pre-pandemic levels.

Federico González, founder of GS Consulting and an expert in U.S. business, remarked that Americans working in Spain with U.S. salaries enjoy a high quality of life, which enhances the city’s attractiveness as a residential and professional hub.

Additionally, the financial accolades coincide with other recent international recognitions for the Community of Madrid.

One notable acknowledgment was received at the Living Summit 2025 for policies and regulations that promote affordable temporary rental solutions.

This success is linked to the regional government’s housing initiative, known as Plan Vive.

Plan Vive, a public-private partnership program for accessible rental housing, has mobilized €1 billion in investment, generated 25,000 jobs, and provided significant fiscal returns to public coffers.

It was recently awarded as the Best Real Estate Development Project at The District, one of the most prestigious events in the building sector in Europe.

Furthermore, governments from countries like Argentina, Ireland, and Portugal have shown interest in this model, which has already begun to be implemented in other autonomous communities such as Valencia, Andalusia, and the Canary Islands.
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