- This year the foreign buyer has stood out above the national buyer, with the French being the most interested in acquiring properties from 1.5 million euros. The most sought-after homes continue to be those with terraces, gardens, patios or communal areas.
- It will be “a good 2023” linked to the evolution of the macroeconomic outlook. In 2023, prices will remain stable with slight increases in the premium segment. The increase in the cost of financing will bring supply more in balance with demand.
With barely two weeks left until the end of the year, the real estate sector closes 2022 showing its resilient character and consolidating its importance as a safe haven for investment after a year marked by the war between Ukraine and Russia, inflation and interest rate hikes to combat the generalized escalation of prices.
In this regard, the premium residential segment continues to be a favorite of large portfolios seeking a safe investment with a stable return that does not depend on macroeconomic factors and is much less volatile than other markets such as the stock market or cryptocurrencies. In addition, the high-end market for first and second home buyers has also confirmed its definitive recovery from the pandemic.
In this context, the average price of premium housing in Catalonia and the Balearic Islands has increased by 8% in 2022, an indicator that has been the main driver in the number of transactions recorded during the year in this segment. With regard to the average profile of the demand for real estate in this market, this year the foreign buyer has stood out above the national buyer, with the French being the most interested in acquiring properties starting at 1.5 million euros.
Elizabeth Hernández, director of BARNES in Catalonia and the Balearic Islands, emphasizes that “premium residential in the main regions of the country is in a good moment and is reaching very high levels of sales and purchases”. “A real estate property resists inflation well, is the best way to protect capital and is an excellent asset shelter for long-term investments.“The expert stresses.
What have been the most searched homes this 2022?
The most sought-after homes continue to be those with areas such as terraces, gardens, patios or communal areas. And the fact is that properties with exterior elements are much more attractive after the pandemic, so those that do not have them are the most sensitive to a reduction in their listing price so that their sales terms are not so long.
The regions with the most interest in high-end real estate in Catalonia are the province of Barcelona (Barcelona, Esplugues de Llobregat, Sant Just Desvern, Valldoreix, Sant Cugat, Sitges and Sant Andreu de Llavaneres), the Costa Brava (Begur, Cambrils, Cadaqués, Calella, Empuriabrava, Llafranc, Pals, Tamariu and Tossa de Mar) and the Costa Daurada (Altafulla, Calafell, Comarruga, L’Ametlla de Mar, Roda de Berà, Salou, Tarragona and Torredembarra). In the Balearic Islands, the islands of Ibiza, Mallorca and Menorca account for most of the demand for premium real estate.
“While the trend of people looking for homes in which to spend long periods of time to make them their second home is still present, in recent months we see how, given the imminent increase in the price of mortgage financing due to rising rates, more and more people are also looking for properties to be put up for sale or rent in the future.”says the director of BARNES in Catalonia and the Balearic Islands.
It will be “a good 2023” linked to the evolution of the macroeconomic outlook
BARNES predicts that 2023 will be “a good year” for the domestic premium market. Housing will continue to be the best option for those families who wish to protect their savings and increase their quality of life by acquiring a property with better features. On the other hand, there will continue to be an upward trend of buyers who are currently renting and wish to own their own home, especially foreigners who, after living a year renting, make the decision to buy due to their desire to continue residing in Spain.“In 2022 demand has been stronger than supply. In 2023 prices will remain stable with slight increases in the premium segment. The increase in the cost of financing will bring supply more in balance with demand. Therefore, the evolution of the real estate market, marked by instability, will be strongly related to that of the international war conflict and that of interest rates.”Hernández predicts.