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Madrid recorded 4.15 billion euros in foreign investment in the first quarter of 2024

After registering 15.434 billion gross productive investment in Madrid in 2023, 54% of the national total, this region recorded 4.15 billion investment in the first three months of 2024, 62% of the national total according to the latest figures from the Registry of Foreign Investments (RIE).

Whereas acquisitions played a key role in the figures for Madrid in 2023, with 44% of inbound investment flows, ahead of other expansions (35%) and new investments (21%), in the first quarter of 2024, other expansions have come to the fore once again, accounting for 52% of investment registered in Madrid, ahead of new investments (brownfield or greenfield, 31%) and acquisitions, which remained at relatively low levels (17%).

In terms of cross-border greenfield investment, an advanced indicator of the city’s appeal to foreign investment, Madrid is the third biggest European city in terms of projects received since Orbis Crossborder Investment (Moody’s) began collecting data (2013). The data offered by this source for the whole of 2023 indicate that 214 new projects were announced in the year in the city of Madrid, valued at more than 3.8 billion dollars and generating more than 13,100 local jobs. Over the year, Madrid was the second most important European destination for this type of project and sixth globally.

This same source identified 125 announcements of cross-border mergers and acquisitions (M&A) operations involving Madrid companies in 2023, with a value of more than 63.3 billion dollars (97 operations, for 59.198 billion, in the city of Madrid).

As for investment position or investment stock, evidence of long-lasting investor confidence in the Madrid economy, the data recently published by the RIE indicate a figure of 379.822 billion euros, 145% of the regional GDP (2022). These figures, which are 4.4% higher than the previous year, more than double (+140%) the levels recorded in 2007. In addition, fixed and tangible assets have continued to perform well over the last four years, rising to 34.395 billion euros (+18% year-on-year).

Origin of investment in the Region of Madrid

France was the biggest investor in the region at the beginning of 2024, with 907 million euros, thanks to strong investments in the electricity supply sector. The United States, the main investor in Madrid in the last decade, is positioned as the second biggest investor country in 2024, with a total of 771 million invested in the period, including investments in Technical architectural services and Civil engineering.  Followed by the United Kingdom (456 million) and Italy (425 million).

In terms of sectors, the electricity supply sector absorbed 28 7.5% of inbound productive flows in the first quarter in Madrid (1.188 billion), followed by Civil engineering (26.6%, 1.103 billion), Technical architecture and engineering services (7.5%, 312 million), Wholesale trade and intermediaries (7.5%, 312 million) and Real estate activities (5.7%, 237 million).

Job creation linked to foreign investment

The employment stock linked to foreign investments in Madrid reached 559,836 jobs at the end of 2022 8 (-3.3% year-on-year), 29% of the national total. Despite the overall good employment figures during the year, the sharp declines in employment in restaurants and food stalls owned by American companies and in employment-related activities in Switzerland have caused the figure to decline.

In spite of breaking the seven-year run of continued growth in this variable from the lows set in 2014, employment figures in Madrid are 43% higher than those recorded in 2007.

The city of Madrid is home to 11,119 foreign capital companies, with investors from over a hundred countries.

Madrid Foreign investment

The aim of Madrid Investment Attraction is to help companies looking to set up in Madrid, making it easier for them to settle in the city, ensuring their growth and integration in the local ecosystem with a view to maximising their contribution to the local economy and society.