“Madrid is having a renaissance; there is something in the air,” said luxury consultant Roopal Patel, who attended the Colombian designer Johanna Ortiz’s runway show in March. It’s the second time Patel has visited Madrid in six months, following Carolina Herrera’s Spring/Summer 2026 show last September, which was also held in the Spanish capital.
The pace of openings across stores, hotels, restaurants, and wellness centers is striking. From the restoration of The Palace hotel to a wave of new private members’ clubs such as Metrópolis, Forbes House Madrid and the forthcoming Soho House, the capital is clearly in expansion mode. And the calendar is equally charged beyond hospitality and retail: June will see a BTS concert, September the arrival of the Formula 1 Tag Heuer Gran Premio de España 2026, and sometime this year, the second NFL game ever hosted in the city, following the first one in November 2025.
The lowdown
Spain recorded the highest GDP growth (2.8%) among the four largest EU economies by GDP — Germany, France, Italy, Spain — in 2025, which as a whole grew by 1.5%, per Eurostat. This is mainly due to booming tourism and structural strengths, and Madrid, which has a metropolitan population of 6.5 million inhabitants, is leading the charge.
In 2025, Madrid registered 11.2 million visitors, with total expenditure just short of €18 billion, representing an 71% increase compared to 2019, according to Spain’s National Statistics Institute (INE). International tourism accounted for 59% of total visitors and 66% of overnight stays, mostly arriving from the US, Italy, France, the UK, and Mexico. Tourists from the US were up 7% in 2025 to 1.1 million. Latin American tourists posed as growth drivers, with notable footfall from Argentina (up 28% year-on-year) and Brazil (up 22%).
It’s not only tourism, though. Political instability in parts of South America have driven wealthy property buyers to Madrid, viewing it as a safe investment location. The Golden Visa program, which ended in 2025, allowed non-EU citizens to obtain residency by purchasing real estate valued at €500,000 and above, further encouraging property investment. This surge of affluent South Americans has significantly boosted Madrid’s luxury real estate market and in turn luxury retail. This has led some to call Madrid “the new Miami”.
There’s also been a noticeable influx of North Americans, particularly from the States, many of whom are drawn by Spain’s digital nomad visa and the Mediterranean way of living, offering a calm distance from American politics.
Luxury companies typically don’t break down individual countries in Europe in their earnings reports, but Erwan Rambourg, outgoing managing director at HSBC, says Spain still accounts for a small but fast-growing share in luxury revenues. It’s no mean feat at a time when the sector is facing weak performance in Europe.
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Valentino store in Galeria Canalejas.
Vincent Ascher, head of luxury at Cushman & Wakefield, a firm specializing in commercial real estate services, notes that it’s not only Spain. “There is a certain momentum now in the entire Mediterranean area, including Portugal and Greece,” he explains. “Even though rents have increased quite a lot, rental values are still quite affordable compared to major markets like London, Milan, and Paris. But with a dynamic that also allows you to see revenue growth.”
“Madrid is clearly on the rise,” Ascher adds. “Post-Covid, luxury brands have aimed to boost local markets, a trend that has particularly benefited Madrid, which is oriented toward a local clientele. When we talk about ‘local’, this includes the new residents from Latin America and North America.”
“Madrid has internationalized itself,” Robert Travers, head of EMEA retail and leisure at Cushman & Wakefield, says. “With South American, North American and European money coming in, it accelerated after Covid. It has become extremely attractive with best-in-class amenities — schools, healthcare, transport hubs — and a good quality of life.”
Exploring Barrio Salamanca
Salamanca, with its elegant 19th century architecture in Madrid’s central eastern area, is often referred to as the city’s “golden mile” thanks to the concentration of luxury boutiques along its two main streets, Calle de Ortega y Gasset and Calle de Serrano. Just a few steps away, however, the modern neighborhood quickly shifts into a quieter, more residential atmosphere. Then, Calle de Jorge Juan, a stylish shopping street in Madrid’s Salamanca district featuring brands like Isabel Marant and Aspesi, has a polished, Rodeo Drive-like luxury retail feel. While strolling through the neighborhood, you’ll often hear South American accents. When Los Angeles wellness mogul Tracy Anderson opened a Madrid studio, she chose Salamanca.
The Loewe flagship store on Calle de Serrano — officially known as Casa Loewe Madrid.
Luxury commercial rents in the neighborhood are in high demand. Vacancy rates in Madrid fell to 0% in 2025, from 5% in 2024, with prime rents rising 6% on Calle de Serrano and 4% on Calle de José Ortega y Gasset in 2025.
“The luxury retail market is still very concentrated within Calle de Ortega y Gasset and Calle de Serrano,” says Ascher. “It’s a market that is very dynamic and highly sought after, inevitably leading to rising rents and difficulty in finding relocation opportunities. The major brands are already more or less all present, so the main challenge is to increase retail space in order to better serve their clientele or to relocate. The key question is whether other streets will also be able to develop within the Madrid luxury market.”
In Salamanca, Tiffany and Fendi opened stores in 2024; Chopard, Aquazzura, and Longines in 2025, either on Calle de Serrano or Calle de Ortega y Gasset. Chanel is currently expanding its store on Calle de José Ortega y Gasset, while Audemars Piguet is due to open this year just down from Chanel.
The only other place where you can find luxury stores outside Salamanca is Galeria Canalejas, a shopping mall on the ground floor of the Four Seasons Hotel Madrid, featuring luxury brands such as Armani, Louis Vuitton, and Saint Laurent.
A vibrant ecosystem
Madrid is a haven of concept stores, with Ekseption, Pez, Sportivo, and Wow among the most popular shopping spots. “Historically, designers tend to rely on concept store distribution in cities where they aren’t yet present. It is a sign of potential openings of standalone stores,” Ascher notes.
“Ekseption has always been the place. I remember going there to discover the Balenciaga collections before the house reopened a flagship in the city in 2015,” says David Martin, the Madrid-born editor-in-chief of Odda Magazine. “It is also the first place where I remember feeling like I was in Paris or New York.”
Ekseption now has two locations in Madrid. Its main flagship store is located on Calle Velázquez in Salamanca, and there’s Ekseption 2 in Justicia, a calm and centric neighborhood. On my recent visit to Ekseption 2, the product assortment included brands such as Toteme, Willy Chavarria, Our Legacy, and Jacquemus. None of them have standalone stores in Madrid. Could they open in the future?
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Ekseption is a high-end, multi-brand boutique.
Beyond concept stores, Madrid is also rife with local brands. Alongside long-established labels such as Ágatha Ruiz de la Prada and Sybilla, newer names are also emerging. “There are three staples in the new generation and fashion ecosystem in Spain: men’s jewelry brand Twojeys by Biel Juste and Joan Margarit, and streetwear brands Scuffers and Nude Project. They have managed to start from nothing and open boutiques globally,” says Martin, who also cites Encinar by Fabio Encinar and Pepa Salazar among this next generation of designers.
Others include Carrer by Manu Ríos and Marc Forné, Paloma Wool by Paloma Lanna, Bimani by Laura Corsini, TFP by Tamara Falco and Maria de la Orden, as well as La Veste, co-founded by de la Orden and Blanca Miro. La Veste opened a store in Madrid in March, in the Chamberí neighborhood.
Meet the shoppers
Diana Iordachioaia
Diana Iordachioaia.
“I came to Madrid for the good weather,” says Diana Iordachioaia, a PR manager in fashion and beauty based in Bucharest, Romania. We met at Wow, a large concept store in Madrid that carries brands such as Sessùn and Sporty & Rich. “Wow is cool because it’s a mix of high-end and premium brands. I am more into the premium brands,” she says. Earlier in the day, Iordachioaia bought a zip-up cardigan at Spanish brand Nude Project and a pair of Miu Miu sneakers at Loue, a store that focuses on pre-loved luxury items.
Diana Ostrerova
Diana Ostrerova and Sammy shopping at Zara on Plaza de España.
Diana Ostrerova, a 26-year-old German social media manager who has been living in Madrid for two years, flanked by her Samoyed dog, was shopping at Zara on Plaza de España. “I live very close, so I come once a week. But you should also check out the new refurbished Zara store with lots of wood on Calle Serrano in Salamanca. It’s beautiful.” She continued: “Madrid is my favorite city to shop in; the fashion is very colorful. There are so many cities where there is a lot of black and white, minimalistic. People here are not afraid of color, or to have their personal style.”
Marta Onieva
Marta Onieva.
Marta Onieva is a Spanish jewelry designer with her own fine jewelry line, Magoni, and a boutique atelier in Salamanca. “It’s a hidden spot,” she says of the Magoni store. “There is a little board in the street. But most people know me and my family, so that’s how they come to me. Most of the clients that pop in are Latinos — they appreciate jewelry a lot. They want this and that with no limit. The Spanish are most reserved. A lot of money is coming here, from Venezuela, Mexico… Now, the real estate prices are through the roof, but there are also a lot of new centers for yoga, facials, and aesthetics.”
Veronica Mertel
Veronica Mertel at Ekseption.
Veronica Mertel, an Argentinian-born actor, producer, and writer living in Madrid, was buying organic cotton underwear at concept store Ekseption 2, located in Justicia. “Justicia is a really good neighborhood because you can find more handmade, unbranded designs,” Mertel says. She recommended checking out two stores nearby: Aimée and Mott. “After four years living in Madrid, I love the city.”
