A beautiful European city is fast becoming the continent's capital for billionaires, a new report has suggested. The report by The Times has named the capital city as a place where billionaires are flocking for numerous reasons. Madrid is the capital of Spain and has always been a hub of commerce, culture and development. However, it has seen an "influx" of billionaires in recent years.

The Spanish city is experiencing a "historic boom", the report says, with the super-rich flooding in from Latin America and Russia. They are setting up in neighbourhoods such as Salamanca, one of the richest areas of the city, which has seen huge numbers moving there in recent months. The area is known for its high-end fashion stores, clearly offering something attractive for the more affluent people of the world.

A Spanish businesswoman told The Times: "The best restaurants are all fully booked — if you want to get a reservation, it’s best to put on a Mexican accent.

"They’ll give you a table because Mexicans, like the Americans, leave huge tips."

The city has also seen a sharp increase in its share of five-star hotels, another indicator of how rich it is truly becoming. In fact, billionaire Jeff Bezos recently celebrated his stag party in the Spanish capital.

Additionally, 19th-century residential blocks are being converted into luxury flats. Juan Urdaneta, a Venezuelan banker, says the influx happened "fast".

He revealed: "The scene is now like London or Paris in terms of high-fliers. It has happened so fast."

He added: "I bought it in 2018 for €2.1 million euros and an Argentinian billionaire recently offered to buy it for €11.5 million. Instead, he paid €16.5 million for another property here."

For those already living in the city, this might mean some less than favourable changes. House prices have increased, according to reports. Idealista, a property sales website, said that in a year, the average price per square metre in Madrid had increased by 24.3 per cent.

Knight Frank’s managing director, Humphrey White, commented: "It’s happened overnight. Those with €30 million or more are now geographically agnostic, no longer tied to their roots, and are ever younger in profile.

"They choose Madrid for its weather, cultural offer, its safety, excellent airport and world-class business schools for the kids. Unthinkable only a few years ago, it’s now a global contender."

Other areas of the city that have attracted the rich and sometimes the famous include La Moraleja. Hollywood star Richard Gere recently bought a property here and now calls it home.

One historian pointed out some concerns that people in Madrid have. Fernando de Pardo revealed: "I find Madrid has changed for the worse. The barrios [neighbourhoods] are losing personality, and traditional shops and bars are disappearing. Strange people have arrived with too much money but very little education and manners."