Spanish luxury real estate market remains a solid driver of the rest of the real estate market. This is one of the main conclusions of the new Lucas Fox Spanish Real Estate Market Report, which analyzes the first half of 2023, and reveals the strong growth of the super-luxury real estate market in Spain, in contrast to the stabilization of the rest of the sector. According to the report Lucas Fox’s transactions for this segment have registered a year-on-year growth of 10% in the first half of 2023.
The report, prepared by the leading real estate company in the luxury residential market in Spain, details that the growth of transactions in this segment is concentrated in areas such as Barcelona, with a 43% increase, in Ibiza and Madrid, with increases of 50%, and in the Costa Brava, which doubled in sales compared to the same period last year.
The same report shows that the average price of prime home sales has increased by 41% and the value of such sales by 54%.
Alexander Vaughan, co-founder of Lucas Fox, notes, “These results reflect the confidence and strong buying power of buyers in the luxury segment of the market, who are less reliant on financing and can cope with rising interest rates. Buyers in the luxury sector, moreover, are less sensitive to rising prices than buyers in other segments and are driven more by confidence in their investments than by price and financial issues.”
According to the report, the first half of 2023 has closed with some 13,300 luxury homes for sale published in Spain and Andorra, priced at €2.5 million or more. These represent 2% of the total supply of 650,000 homes on the market.
The report also states that the supply of luxury homes is highly concentrated in a few regions, with 97% of the supply distributed in only 9 of the 50 provinces, plus Andorra. The Andalusian province of Malaga is home to the flagship of the coastal luxury segment, Marbella, which concentrates the largest supply of luxury homes for sale with 4,416, closely followed by the Balearic Islands with 4,327 and Madrid, more distant, with 1,238.
According to the report, the luxury segment already represents 15% of the local market in the Balearic Islands, 9% in Malaga, 3% in Madrid and less than 1% in the rest of the Spanish provinces, which account for the remaining 80%.
Spain, an increasingly attractive international luxury market
The report also states that buyers of luxury homes in Spain are mainly from European Union countries, but clients from other European countries, such as the United Kingdom, North America and the Asian market also come to the Spanish market.
Stijn Teeuwen, co-founder of Lucas Fox, adds: “Spain has an increasingly mature local luxury market and at the same time is a country capable of attracting new buyers from all over the world, thanks to its mild climate and admired quality of life, while many people have re-evaluated their priorities in the wake of the pandemic.
With more than 30 offices in prime areas of Spain, Andorra and Portugal focused on real estate brokerage services for homeowners, sellers and buyers, both local and international, Lucas Fox has unique insights and its market reports help clients and business partners understand the current state of the Spanish prime real estate market.
Lucas Fox offers a personalized residency service for non-EU buyers, with a dedicated team focused on securing the best possible property for clients seeking to benefit from the Golden Visa program.
