Diego Simeone's side have captured the striker, who is Spain's all-time top goalscorer, for 2.1million euros (£1.8million), a fee which will rise to 5.1million euros (£4.4million) if he sees out a three-year contract.
And Luis believes the 31-year-old will take no time at all to adapt to his new club and start scoring goals.
"I think he's a great signing, and the correct choice, not just because of everything he represents for Spanish football, but because he won't need to adapt, he scores 15 or 20 goals a season," the defender said in a press conference.
Villa has been brought in as a replacement for Radamel Falcao, who has moved to Monaco and was Atletico's top scorer last season, netting 28 goals.
Luis was careful not to make comparisons between the Colombian and Villa, but believes the Spaniard can help take the club forward.
"He has been scoring goals in this league for many years now and, most importantly, he still has that hunger, which is what this team needs if we are to keep growing and competing," said the Brazilian.
"Of course Falcao and Villa are different players. Villa plays all over the pitch and is very good at finding space. Last year Diego Costa played that way and it worked very well for us. I'm sure he'll come here determined to succeed."
Last season Atletico finished third in La Liga and won the Copa del Rey, beating local rivals Real Madrid in the final in the Bernabeu.
But Luis is determined for his team to build on last year's success and strive for even more next term.
"This team can keep growing and can give even more," he said.
"I won't place any limits on the team or myself. We're going to grow, the team and I are both going to try even harder it wouldn't surprise me if we improved on what we achieved last season."