Luxury property buyers in Spain: profiles, hotspots and investment trends

The real estate services agency Berkshire Hathaway HomeServices has conducted a study on the profile of luxury real estate buyers in Spain. The study highlights where these buyers are purchasing properties, their age demographics, their investment objectives, and, most importantly, the amount they are willing to invest.

An investment in luxury housing between 600,000 and 2 million euros

The company asserts that domestic luxury buyers are primarily investment-driven, focusing on opportunities and profitability. In contrast, international buyers seek second homes with retirement, holidays and enhanced quality of life as their main priorities.

Consequently, the agency estimates that foreign investments are generally larger than those made by residents. Transactions often exceed €2 million with the most exclusive properties typically priced in the "eight figures," usually purchased by international investors.

In comparison, the investment range for national clients is between €600,000 and €1.5 million, as they aim to generate profit and often require external financing.

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Foreigners are looking for luxury in Málaga and Mallorca

The most significant difference is between the buying trends of Spaniards and foreigners. The working-age population with high purchasing power, typically between 35 and 60 years old, primarily seeks flats in modern, centrally located buildings in major cities like Madrid and Barcelona. However, the rise of remote work and the influx of digital nomads are shifting this trend, with younger buyers increasingly gravitating towards coastal areas.

In contrast, retired luxury buyers and foreigners are focused on coastal areas, such as Málaga and Majorca. Unlike remote workers, they typically seek properties in quiet and safe residential neighbourhoods, particularly beachside homes with sea views or large rustic estates for retreat purposes. Younger homebuyers, on the other hand, prefer central and bustling areas where services are more readily available.

Similarly, workers nearing retirement, specifically those over 50, tend to favour the Costa Blanca, viewing it as an ideal location for both their current jobs and future retirement.

British, Swedish and Dutch: the most active nationalities 

Domestic luxury buyers are currently trailing behind their international counterparts. The agency attributes this lag to high interest rates but anticipates that the market will balance out in the future with forthcoming downturns.

Foreign investors significantly dominate the most tourist-heavy areas, such as Marbella, Mallorca, and the Costa Blanca, where they account for around 90% of luxury transactions, primarily from British, Swedish and Dutch buyers.

Madrid occupies an intermediate position between Spanish and international buyers. Despite a slowdown among investors residing in Spain, the volume of national luxury transactions in the capital remains high. However, foreign buyers now hold a greater influence in the Madrid market.

In major cities like Barcelona and Málaga, Spanish buyers are predominant, comprising 80% of the market in Barcelona and between 60% and 70% in Málaga. According to the agency, this trend is driven by international buyers who tend to favour quieter areas away from the city centre, such as Eixample, Ciutat Vella and Vila Gracia in Barcelona, and Marbella, Estepona or Benahavís in Málaga.

Bruno Rabassa, CEO of Berkshire Hathaway HomeServices Spain, states that "Spain has established itself as one of the most attractive destinations for high-end real estate investment," citing the "rich diversity in buying preferences and the various opportunities offered by each region."