Latin Americans are transforming this exclusive European neighborhood: it was already rich, it became even richer

To enter the real estate market in this Madrid neighborhood, buyers need to have deep pockets. And this is precisely what newcomers from Latin America bring

A self-respecting large city usually has its own area dedicated to the luxury market. New York has Fifth Avenue, Paris has the Champs-Élysées, in Madrid an area known as the “Golden Mile” stands out.

The “Golden Mile” is a network of streets located in the Salamanca neighborhood, in the Spanish capital, where some of the most exclusive clothing and jewelry brands in the world are concentrated. It is an environment that attracts foreigners interested in investing in real estate, with a large part of them coming from Latin America.

“It’s like an open-air shopping center,” Cristina Lanzarot, director of the Association of Merchants of the Salamanca neighborhood, in Madrid, which brings together around one hundred luxury stores, tells CNN. “If it’s not the most special shopping center in the world, it’s certainly one of the most special.”

It’s not just the “Golden Mile” that attracts foreigners. It is rather a trend that extends to the six areas that make up the Salamanca neighborhood. It becomes noticeable when walking through the streets, where an elegant atmosphere captivates pedestrians with its wide avenues and majestic buildings.

The real shock comes with prices — not just the cost of an afternoon’s shopping, but also housing. This neighborhood has the highest price per square meter in the entire city of Madrid: around 10 thousand euros, compared to the city average of 5,800 euros, according to data compiled by Madrid City Council in February.

These are values ​​that would scare many Spanish buyers, but are within the reach of foreign fortunes, which have been gaining increasing importance in the neighborhood over the last decade. Tarek Mure, consultant at Gilmar real estate agency in Salamanca, describes it as an “unusual” form of gentrification. “It’s not gentrification from poor to rich, but from rich to even richer.”

In 2015, foreign-born residents made up 18% of the neighborhood’s population. In 2025, the number rose to almost 30%, according to data from the city council.

What draws attention is the fact that, of the neighborhood’s 44,680 foreign residents, almost half — 21,740 people — come from South American countries. “Now, instead of going to Miami, these fortunes are coming to Madrid,” says Lanzarot. Mexicans total 3,549 residents, according to 2025 data from Madrid City Hall.

Lanzarot highlights “the beauty of the neoclassical architecture” of the neighborhood, as well as “the language [comum] and the existing security, with the possibility of strolling peacefully” as some of the reasons that caused the entry of foreign wealth.

What new buyers are like in Madrid

To enter the real estate market in this Madrid neighborhood, buyers need to have deep pockets. According to Mure, this is precisely what newcomers from Latin America bring.

According to him, they are “huge” and “impossible to match”. To illustrate, he cites the recent sale of a 460 square meter apartment in Plaza de la Independencia — where the iconic Puerta de Alcalá is located — for more than 15 million euros.

“We are talking about more than R$30,000 per square meter, for a house that is not even new and was purchased as a second home”, details Mure, adding that buyers are spending, on average, R$2 million to R$4 million.

These wealthy buyers also tend to share a taste for certain features: houses with exterior-facing facades, integrated kitchens and living rooms, and large bedrooms with private bathrooms, given that, as Mure notes, “they have an active social life and are always inviting people to visit them.”

Displace Spanish money

The arrival of these new fortunes ended up modifying the region’s commercial ecosystem. “Now, many more luxury stores are opening, and an incredible number of very important international jewelry stores”, highlights Lanzarot.

This change is also changing the habits of those who have lived in the neighborhood for years. “If you go looking for a beer in a nice place, with good tapas, you won’t find it anymore. In Recoletos, at least, you won’t find it,” says Mure. “Now there are only high-end restaurants where a beer can cost $15 and where they don’t serve anything to go with it.”

By way of example, Mure explains that there are former residents of the Salamanca neighborhood who chose to invest the money from the sale of their homes in chalets in the luxury development La Moraleja, in the neighboring municipality of Alcobendas, or in El Viso, in the Chamberí neighborhood.

However, this trend, as Mure notes, also creates an indirect effect: property prices end up rising in areas where displaced residents move.