The luxury housing market is shining brightly. That’s according to data from the latest market report by Lucas Fox, a real estate agency specializing in these types of property, showing that the sale of new constructions in Barcelona and Madrid is at the highest point since the housing crisis. This new analysis indicates that 50% of the total sales in both cities were of these types of houses.
What’s more, the total number of transactions which the company has been a part of increased by 39% in 2017, with an average sale price of 830,000 euro, 14% more than in 2016 (when it was 730,000 euro) .
Madrid has experienced the largest increase in transactions, with interannual growth of 92%. That’s followed by Valencia, with an increase in sales of 86%. In Barcelona, despite the political uncertainty experienced at the end of the year, the sale of properties increased by 24%.
"Official data indicates that the market has recovered from the 2008 crash, and in some areas the number of transactions is reaching levels similar to those before the crisis, but in general prices remain below those reached in 2007, which offers attractive investment opportunities throughout Spain," says Rod Jamieson, commercial director of Lucas Fox.
Land shortage in capitals
In big cities – especially in Madrid and Barcelona – the development of new constructions are scarce due to lack of land. To cover that demand, therefore, other roads must be taken, such as renovation, something that doesn’t happen in other areas, such as the coast of Spain. "We believe that 2018 will be a decisive year for the development of new construction on the Costa Brava," says Tom Maidment, a partner at Lucas Fox.
"In 2017, the province of Girona experienced an annual growth of 25% in the sale of new construction promotions, and we anticipate that this figure will increase considerably in the next two years. Despite this increase in the construction and sale of this type of properties, we are still far from the prices reached in 2007. As in other tourist areas, the recovery of the Costa Brava market is one step behind the recovery in large cities," he adds.
Thanks to these prognostications and to satisfy the demand of the luxury sector in the big capitals, Lucas Fox has just launched a development of 27 luxury homes – 22 apartments, five penthouses – that have been renovated at number 19 Calle General Martínez Campos street, in the exclusive neighbourhood of Chamberí.
The development will have an outdoor heated pool, gym, terraces and parking. The properties range from 200 m2 to 420 m2 (2,150 sq ft – 4,520 sq ft) and the price starts from 1.56 million euro, going up to 2.65 million euro. The construction work will start this March and the homes will be ready by the end of 2019.
In Barcelona, Casa Burés and Apartamentos Girona are covering the demand for high-end homes in central locations and with historical elements, which are especially attractive for international buyers.
Profile of a buyer of luxury homes in Spain
With regards to the profile of luxury home buyers, Spanish citizens make up 34% of Lucas Fox’s customers and international customers 66%, a percentage very much in line with 2016. Specifically, the British accounted for 10% of the total, while the North Americans and the French tie with 8%. Also with a big showing are buyers from Scandinavia, the Middle East and Asia.
Why do they buy? Just over one third (34%) of the buyers acquired one of these properties as a second home, while 28% did so to establish their main residence. The same percentage (28%) of customers buy for investment purposes, compared with 22% in 2016. Acquiring real estate as an investment seems to be fashionable in the Spanish market.