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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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.
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