Preliminary data from the Investment Registry for the first nine months of 2024 indicate that the Community of Madrid remained the leading destination for investment in Spain, receiving €16.95 billion, 71.8% of Spain’s total, followed at a distance by Catalonia (€3.45 billion, 14.6% of the total), Asturias (€596 million, 2.5%), Andalusia (€481 million, 2.0%), and the Valencian Community (€426 million, 1.8%).
Madrid’s investment figures for the first three quarters of 2024, which already exceed the total investment received throughout 2022 and 2023 combined, include significant intragroup financing transactions (28.9% of the total) – a new category that the Investment Registry will begin tracking from 2024 onward, and which was not included in previous years’ data. When considering only capital and equity investments, which account for 71.1% of Madrid’s total investment inflow during the first nine months of the year (€12.049 billion), the figure represents an 11% increase compared to the average recorded in the same period (January-September) over the previous five years.
In its latest data release, the Registry has revised upward the investment figures for Madrid over the past three years, incorporating major transactions in 2023 and in the early months of 2024 that have had a positive impact on the totals.
The figures for the Madrid region in the first nine months of the year, similar to the national data, continue to show an unusually low volume of acquisitions (14.9%). Given the transactions announced in the first half of the year (not necessarily authorised or completed during the period), it is anticipated that this figure will increase significantly by year-end, with final data expected in late March 2025. It is important to note that, in recent years, the “other types of expansion” category has included significant transactions that may involve funding to Madrid-based companies in preparation for a subsequent acquisition, which partly explains its substantial share of the total. In 2024, this category already accounts for 55.8% of flows, while new investments make up the remaining 29.3%.
UK and US Cement Position as Madrid’s Top Investors in 2024
In the first nine months of 2024, the United Kingdom led as the top investor in the region, contributing €7.47 billion (44.1% of the total). This was largely driven by the high-profile Zegona acquisition of Vodafone in the telecommunications sector (nearly €5 billion recorded in the second quarter). Significant investments were also made in engineering technical services (€657 million), the food industry (€583 million, primarily from the CVC fund’s acquisition of Monbake, categorized under bread and bakery product manufacturing), and call centre activities (€333 million, also recorded in the second quarter).
The United States ranks second, with a total investment of €2.15 billion during the period (12.7%), led by significant contributions to engineering technical services (€965 million), real estate activities (€337 million), and civil engineering (€246 million).
Norway achieved its highest-ever investment in the Madrid region, reaching €1.56 billion (9.2% of the total), entirely focused on energy supply. This milestone was driven by Statkraft, the state-owned company, acquiring Enerfin, the renewable energy subsidiary of the Elecnor Group.
France secured fourth place, surpassing the €1 billion threshold with investments totalling €1.28 billion (7.6%). Most of this outlay was directed toward the electricity supply sector (€785 million).
Telecommunications, Energy Supply, and Technical Architecture and Engineering Services Lead Sectoral Growth
From a sectoral perspective, key transactions during the first half of the year defined the most prominent industries in Madrid. Telecommunications dominated with 29.6% of gross productive flows (€5.02 billion), followed by Electricity supply (17.8%, €3.01 billion). Other notable sectors included Engineering technical services (9.6%, €1.63 billion), Financial services (6.8%, €1.16 billion), Civil engineering (6.7%, €1.13 billion), and Real estate activities (4.4%, €744 million).
The data provided by the Registry notably exclude several major transactions announced in recent months. These include Liberty Media’s acquisition of Dorna for over €4 billion, Cinven’s purchase of Idealista (€2.9 billion), the takeover bid for Applus exceeding €1 billion, EQT’s acquisition of Universidad Europea (€2.2 billion), and the French firm Wendel’s purchase of 50% of Globeducate (€1 billion). In addition to other significant takeovers and acquisitions currently in progress—some still awaiting regulatory approval—these transactions could substantially impact future updates to the Registry’s data. However, it is worth noting that acquisitions between foreign investors, even when involving Spanish companies, will not be reflected in the recorded flows.
Madrid strengthens its leadership in cross-border greenfield projects, attracting significant investment and employment.
Greenfield investment, a key driver of growth and employment, has seen a remarkable rise in Madrid over recent years despite global challenges such as the pandemic. According to Orbis Crossborder Investment (Moody’s), between 2019 and the end of 2023, Madrid attracted nearly 200 projects annually, with an average yearly investment exceeding $3.58 billion, generating 13,240 jobs per year.
In 2023, Madrid positioned itself as the second-largest European destination for greenfield projects and the sixth globally. A total of 235 new projects were announced in Madrid—a 51% increase over the previous year—with investments surpassing $3.80 billion, creating over 13,600 jobs. This was the second-highest job creation figure since records began, second only to the exceptional year of 2019.
During the first nine months of 2024, 140 new projects from 121 different companies were registered, totalling over $4.2 billion in investment and creating 7,500 jobs. Notably, the average investment per project rose to $32 million (compared to $17 million the previous year), while job creation per project increased to 71 jobs (up from 62). Both figures are well above the average for the past decade.
Since 2013, Madrid has accounted for 82% of all announced projects in the region, 78% of the total investment, and 76% of the associated job creation.
Foreign Capital Business Concentration Showcases City’s Openness to International Investment
As of late 2024, Madrid was home to over 12,000 foreign-owned companies (unique NIFs controlled by a foreign parent company – Global Ultimate Owner, or with direct shareholders holding 10% or more), according to data from SABI (D&B). These companies represent investors from more than 100 countries. Madrid accounted for 79% of the foreign-owned companies based in the Community of Madrid and 34.5% of the total in Spain.
These companies employ nearly one million professionals in the city (991,903 workers), which represents 69% of the employment in foreign-owned companies in the Community of Madrid and 39% of the total foreign-owned employment in Spain. Collectively, they generated 379.1 billion euros in revenue in the last year, accounting for 71% of the revenue from foreign-owned companies in the Community of Madrid and 38% of the total in Spain.
