Rabassa: "luxury housing prices surge, best time was yesterday"

One of the leading figures in this sector is Bruno Rabassa, CEO of Berkshire Hathaway HomeServices Spain, the real estate firm founded by Warren Buffett. In an interview with idealista/news, he analysed the current state of the luxury market in Spain and explained how the company is attracting buyers from the United States.

During the conversation, Rabassa highlighted the strong momentum of the Spanish market and the growing interest from international investors. He also stated that Spain is increasingly referred to as the “Florida of Europe”, describing it as an ideal destination both for retirement and for raising a family. He added that a growing number of young professionals are choosing to live in Spain, drawn by remote working opportunities, high quality of life and strong international connectivity.

Spain is not only one of the most visited countries in the world, but it also boasts one of the highest life expectancies. We offer a way of life that matches exactly what many buyers are looking for.

I’ve recently spent three weeks in the United States and another week in Latin America, and I was struck by how well Spain is now positioned on the map in the US – something that wasn’t the case years ago. As for Latin American buyers, Spain has always been a well‑established destination, and interest in investing in the Spanish property market remains strong.

We should also not overlook the rest of Europe, where Spain continues to be highly attractive. It is often described as the “Florida of Europe” – an ideal place to retire and, for those not yet at that stage, a wonderful environment in which to raise a family. We offer a wide range of international schools and a strong capacity to welcome foreign residents in many ways.

The Costa Blanca, with our offices in Dénia and Altea, is also performing very well, closing increasingly significant transactions with higher investment volumes.

Naturally, Madrid and Barcelona remain key markets. However, from the perspective of foreign buyers, Madrid has gained prominence over Barcelona. This is partly influenced by the political climate in Catalonia and perceptions of safety, both of which are important factors in lifestyle decisions.

Barcelona experienced its peak following the Olympic Games, and today most of its buyers are domestic. In contrast, Madrid has a much higher proportion of international clients.

In other areas, the profile is more varied. On the Costa del Sol, British buyers dominate, while on the Costa Blanca, there is a mix of Belgians, Poles and a more diverse international clientele.

An interesting trend we have observed is that many Latin American buyers, once established in Madrid, begin to explore other attractive areas. They often look for larger properties in locations such as La Moraleja, but also purchase second homes in destinations like Marbella, Sotogrande or the Costa Blanca. Some also invest in northern regions such as Cantabria, Asturias, Galicia and the Basque Country, although in smaller numbers.

American buyers tend to arrive with a more open approach: some look for city living, others prefer coastal properties, and many are also drawn to mountain locations.

It certainly works in our favour. We have more than 1,600 offices worldwide and over 60,000 agents.

At the annual convention in the United States, there were around 5,000 attendees. In the past, we had to introduce ourselves to the market – now the situation has reversed, and agents approach us because they have American clients interested in buying in Spain.

In the United States, high‑net‑worth individuals typically work with a trusted real estate agent. Our presence in Spain makes it easier for those professionals to recommend our services and properties.

In addition, many of these clients use financing, even if they have significant wealth. If they can secure a mortgage at around 2.5% while their investments generate returns of 7%, 8% or even 10%, it allows them to preserve their capital.

Ultimately, the association with Warren Buffett adds a strong layer of credibility, backed by rigorous processes. Clients often arrive with part of the groundwork already done, which gives them greater confidence and peace of mind.

If rates are increased again, I believe they would remain at reasonable levels. In my view, what was not sustainable was the exceptionally low Euribor levels during the pandemic, which did not make economic sense.

It is already happening. I have recently signed an agreement with a Kuwaiti company that is sending us buyers with very competitive offers.

Spain continues to act as a magnet for international investors. However, the main challenge lies in the lack of supply – although this is less evident in the luxury segment, which tends to be more stable.

The issue is that public and private initiatives are moving at different speeds. Administrative processes for licences, permits and utilities are often excessively slow. This is compounded by challenges related to electricity supply.

There are four key factors to consider: a shortage of available land, the fact that much of the land is not particularly attractive for development, rising construction costs – largely due to labour shortages – and the complexity of bureaucratic procedures involved in obtaining licences.

In the luxury segment, the elimination of the “golden visa” had a limited impact on overall property sales. While it served as a useful marketing tool, a large proportion of foreign transactions were not driven by it. Moreover, buyers in this segment are not competing with the middle class for housing, so its removal has had little effect on affordability.

Another example is the Solidarity Tax. High‑net‑worth buyers often respond by structuring purchases with financing, which reduces their tax exposure. In that sense, it becomes more of a political message than a real deterrent for international investment. Overall, these measures are not perceived as especially negative abroad.

COVID transformed the market. People’s mindset shifted significantly – there is now a stronger focus on enjoying life and making the most of it. Sales of yachts and private jets increased notably.

Spain also emerged as an especially attractive destination after the pandemic, which boosted investment in luxury assets within the country.

We are seeing that many luxury buyers are choosing to live in Spain with their families and children. When they need to travel to the United States or other parts of Europe, they can easily do so, as Spain is an exceptionally well‑connected country.

We have a fibre‑optic network that is the envy of many countries – for example, large parts of London still lack this level of connectivity. We also offer direct international flights to major destinations and one of the largest high‑speed rail networks in the world, second only to China – although it is currently not operating at its peak efficiency.

In addition, we have a strong healthcare system, a rich cultural heritage, renowned gastronomy, a favourable climate and a diversity of landscapes, from beaches to mountains. Altogether, Spain is an exceptional place to live.

As for international schools, they are a decisive factor. I recently met with a senior American executive considering moving to Spain, and he had three priorities: enrolling his daughter in an international school, practising scuba diving and having access to golf facilities.

Demand has not disappeared. However, domestic buyers perceive prices differently from international clients and are not fully convinced by current levels. Many may be waiting for some form of adjustment in the market before making a decision.