Recently released data from the Foreign Investment Registry for the first half of 2024 reveals that the Madrid region attracted 67.5% of Spain’s gross productive investment since the start of the year, totalling €7.94 billion, significantly boosting its share compared to the previous year. Following Madrid are Catalonia (€1.76 billion, 15.0% of the total), Asturias (€0.60 billion, 5.1%), Aragon (€0.33 billion, 2.8%), and the Valencian Community (€0.33 billion, 2.8%)
In the first quarter of 2024, Madrid absorbed 62.1% of national investment flows (€4.20 billion), with its share rising to 74.8% in the second quarter (€3.74 billion). Overall, Madrid’s investment intake in the first half of 2024 is slightly above the same period in the previous year (+2.2%) and is 9% higher than the average for the first half of the past five years.
A large share of Madrid’s investment at the beginning of 2024 came from equity and capital contributions (82.1%). Additionally, notable investments were made through intra-group financing (17.9%), a new category the Registry began tracking this year.
The data for Madrid and Spain as a whole in the first six months show a relatively low volume of acquisitions (10.6%). However, considering transactions announced in the first half of the year (not all completed within this timeframe), this figure is expected to rise significantly by year-end. Early 2024 saw a high volume of brownfield investments (26.9%, focused on expanding or improving existing infrastructure) and greenfield investments (20.8%, involving the creation of new facilities). Together, these investments (47.7%) outpaced other expansions, which also remained substantial (41.7%). In recent years, some of these expansions have included allocations to Madrid-based companies for potential future acquisitions.
In the first half of 2024, the United Kingdom emerged as the top investor in the region, with €1.64 billion (20.7% of the total), driven by substantial investments in technical engineering services (€0.65 billion in the second quarter), call centre activities (€0.34 billion), and the wholesale trade of solid fuels (€0.26 billion). The United States followed closely with €1.63 billion invested (20.5%), particularly in technical engineering services (€0.96 billion) and civil engineering (€0.25 billion). France ranked third, with over €1.11 billion invested (14.0%), mainly in the electricity supply sector (€0.79 billion). Other notable investors included the Netherlands (€0.63 billion, 7.9%), Spanish subsidiaries abroad (€0.51 billion, 6.4%), Italy (€0.46 billion, 5.8%), and Mexico (€0.34 billion, 4.3%).
From a sectoral perspective, some of the aforementioned transactions defined the most significant sectors in the first half of the year. Leading the way were architectural and engineering services, accounting for 20.4% of Madrid’s gross investment flows (1.621 billion euros), followed by electricity supply (16.4%, 1.305 billion euros) and civil engineering (14.3%, 1.132 billion euros). Other important sectors included financial services (12.2%, 969 million euros) and real estate activities (5.6%, 448 million euros)
It is worth noting that some major deals announced in recent months are not yet reflected in the Registry’s data. These include the purchase of Dorna by Liberty Media for over €4.00 billion, Cinven’s acquisition of Idealista (€2.90 billion), the takeover bid for Applus (exceeding €1.00 billion), EQT’s purchase of Universidad Europea (€2.20 billion), the acquisition of 50% of Globeducate by the French firm Wendel (€1.00 billion), and the sale of Vodafone Spain to Zegona (€5.00 billion). Alongside other major takeovers and acquisitions currently pending regulatory approval, these transactions could significantly impact future updates to the Registry’s data.
Madrid strengthens its leadership in cross-border greenfield projects, attracting significant investment and employment.
In the area of greenfield investment, known for driving growth and job creation, data from Orbis Crossborder Investment (Moody’s) highlights a notable increase in investment activity in Madrid over recent years, despite the challenges of the pandemic. From 2019 to the end of 2023, almost 200 projects were announced annually in the capital, with an average investment surpassing $3.84 billion per year, generating about 13,040 jobs each year.
In 2023, Madrid solidified its standing as a top destination for greenfield investment in Europe, ranking as the second-largest European hub and sixth globally for such projects. That year saw 223 new projects—a 45% increase from 2022—bringing investments of over $3.88 billion and creating more than 13,300 new jobs. This marked the second-highest employment figure on record, following the peak in 2019
In the first half of 2024, around 96 projects from 85 different companies were recorded. These projects represented investments exceeding $2.8 billion and the creation of 7,500 jobs. Notably, the average investment per project rose to $31 million (up from $19 million), with an average of 83 jobs per project (up from 63), both of which surpass the average project size in Madrid over the past decade.
Since 2013, Madrid has hosted 82% of the projects announced in the Community of Madrid, accounting for 79% of the investment and 77% of the job creation. This concentration underscores Madrid’s dominant role as the economic engine of the region, attracting the bulk of investment and job opportunities.
Growth in FDI stock
The foreign investment position in the Community of Madrid has been steadily increasing since 2013. By 2022, productive investment stock reached €379.8 billion, a 4.4% increase compared to 2021, and more than double the levels recorded in 2007, the earliest year with available data. The stock of FDI represents the value of the assets that foreign investors hold in companies in the Community of Madrid, with direct investment, and financing between related companies. It makes up 145% of the region’s GDP in 2022, equivalent to €56,583 per capita.
Madrid remains Spain’s leading region in attracting foreign investment, capturing 69% of the national FDI stock in 2022—6 percentage points higher than in 2007. It leads significantly over Catalonia (14%), Asturias (3.2%), and the Basque Country (3.1%).
Fixed tangible assets offer an additional insight into where investments occur and how foreign companies’ fixed assets in Madrid evolve. In 2022, foreign companies’ material assets in Madrid reached €37.7 billion, accounting for 23% of the national total. This represented a 9% increase from the previous year, further widening Madrid’s lead over other regions in terms of asset investment.
Foreign-owned companies in Madrid
As of September 2024, 12,154 foreign-owned companies are based in Madrid, representing 79% of foreign subsidiaries in the Community of Madrid and 34% of such companies in Spain. These businesses employ 989,355 people, accounting for 69% of employment in foreign subsidiaries in the Community of Madrid and 39% nationwide. In the past year, they reported total revenues of €381.8 billion, representing 71% of the region’s total and 39% at the national level.
