Spain's luxury residential market continues to set trends, positioning itself as one of Europe's most attractive investment destinations, according to Lucas Fox's 2024 Spanish Real Estate Market Report. During the first half of the year, the supply of prime properties – those priced above €2.5 million – increased by 7%, reaching 14,060 available homes. This growth contrasts with the general 12% fall in property supply in Spain, highlighting the luxury segment's strength compared to other housing types.
The report also highlights a 5% increase in house prices in the first six months of 2024 compared to the same period last year, consolidating a cumulative increase of 35% over the last decade. According to Alexander Vaughan, co-founder of Lucas Fox, this growth reflects not only the strength of the domestic market but also Spain's ability to attract international buyers thanks to its economic stability, cultural richness, privileged climate and tourist appeal. These characteristics have allowed Spain to lead price growth in Europe, with an annual increase of 7.9% over the last five years, ahead of countries such as Portugal, Italy and the UK.
Lucas Fox's analysis shows that demand for new builds increased by a remarkable 24% in the first half of the year, even though new build construction was down 53% year on year. This lack of new supply is putting upward pressure on prices, especially in the prime segment, where both Spanish and international demand remain a key driver. According to Stijn Teeuwen, also co-founder of Lucas Fox, “the lack of sufficient new construction could add to price pressure in the future, although we expect prime home sales to increase significantly by 2025”.
The supply of luxury homes in Spain is highly concentrated in certain regions. Málaga leads the prime market with 30% of the total supply, followed by Mallorca with 27%. Other key areas include Madrid and Barcelona, which account for 9% and 7% respectively, as well as Alicante, Ibiza and Girona, which maintain a significant share of the market. On the other hand, the luxury segment stands out especially in destinations such as Ibiza, where it represents 32% of the total supply, and Mallorca, with 18%.
In terms of transactions, Costa Brava led Lucas Fox’s activities in the first half of the year, accounting for 37.5% of the company's turnover. Other notable destinations include Barcelona, Madrid, Ibiza and Garraf with 12.5% each, while Alicante and Andorra accounted for 6.3% of transactions. This performance demonstrates the continued interest in luxury properties in various regions, both inland and on the coast.
The profile of buyers also confirms the international importance of the prime market in Spain. Foreign buyers accounted for 66.9% of the total, with Americans leading (10.4%), followed by buyers from the Netherlands (8.2%), the UK (7.9%) and France (6.6%). The domestic market remains important, albeit to a lesser extent, with 33.1% of buyers coming from Spain. This balance between international and local demand has contributed to the continued growth of the luxury segment.
Looking ahead, the Lucas Fox report predicts an optimistic outlook for the luxury market in Spain, driven by resilient demand and consolidated appeal in Europe. Although new construction remains a challenge, price pressure and the high concentration of supply in exclusive destinations will ensure continued momentum. Founded in 2005, Lucas Fox has established itself as a leader in the luxury residential sector in Spain, with more than 30 offices in the country and a presence in key markets such as Andorra, Portugal and France. The company has been awarded the best real estate agency in Spain for the fourth time by the prestigious International Property Awards in its 2023–2024 edition, underscoring its role as a benchmark in the sector.