luxury homes in spain They became an oasis of peace in the complex Real estate in times of mortgage restrictions. rapid rise interest rates It has created a crunch in external financing of residential housing, but this problem is ‘peccata minuta’ for high-priced properties. “The luxury market appears to be more resilient than other residential market segments.” Tecnitasa report It is based on monitoring the market through independent valuation reports since 2018.
According to this study, this number luxury home buying and selling transactions It increased significantly last year. In particular, the number of real estate appraisal reports increased by 55% last year. The increase in valuation reports published by Grupo Tecnitasa for this segment is a reliable indicator, showing that they have increased sixfold in the last five years.
Luxury homes are located in markets where average prices have increased rapidly in recent years and where foreign buyers are generally dominant. Luxury homes act as magnets in their areas for the promotion of more affordable homes. It’s no surprise that the Balearic Islands led the way last year, with the average price per square meter of luxury homes exceeding 9,000 euros per square metre. This average price across Spain has increased by more than 10% since 2021. housing bubble in this market segment? The answer of most experts is ‘no’, as the wealthy or foreign customer finds in Spain a market where prices are lower than in other European regions and with an adequate quality-price ratio.
More than 70% of luxury homes are villas, isolated houses with plots of land, and almost 30% are apartments or penthouses in ‘premium’ residential areas. The main investor profiles in luxury homes are Europeans (Germans, British, Swedes or Swiss) and increasingly Americans (Mexicans, Venezuelans, Americans and Canadians).
According to Fernando García-Marcos, technical director of Grupo Tecnitasa: “We have seen how the interest in the luxury residential segment has increased in Spain in the last five years, significantly increasing the number of transactions. We confirmed this with the growth. In the valuation reports published by the Group regarding this segment 1 “There has been a sixfold increase in properties between .5 million and 5 million in the last five years, while there has been an increase in reports of properties greater than five million. I multiply by nine.”
Considering that for economists, a wealthy person is generally considered to be someone with cash assets of around 20 million euros, in the case of home ownership, this figure increases from 1.5 million to approximately three million. But for a modest luxury, this figure would be an oxymoronic quality, because five million when the house is considered luxury is already 10 million, which is called super luxury. The price per square meter of premium, luxury and super-luxury homes in Spain has increased by more than 10% on average since 2021. This figure, which was over 6,700 Euro/m2 on average that year, increased to 7,660 Euro/m2 in 2023. The highest value is found in the Balearic Islands: more than 27,000 €/m2.
In the last two years alone, Tecnitasa has published more than 1,500 valuation reports for this luxury home segment, valuing it in excess of €5.2 billion.
The preferred location for premium, luxury and super-luxury homes is by far the Balearic Islands, followed by Madrid, Catalonia (Barcelona and Girona) and the Andalusian provinces of Malaga and Cádiz. Another expanding market is developing in the province of Alicante in the Valencian Community.
The Balearic Islands continue to top the list of the luxury and super-luxury market, which started at five million euros last year, followed by the provinces of Malaga, Madrid, Barcelona and Girona.
The areas where super luxury properties worth more than 10 million Euros are concentrated in the Balearic Islands are municipalities such as Andratx (up to 19 million), Calviá (up to 18 million), Eivissa (up to 15 million). ), Sóller (up to 13 million), Deyá (up to 11.7 million), Marratxi (up to 6.7 million), Palma de Mallorca (between 5 and 11.8 million euros, but there are some exceptions for houses valued over 16 million ) Euro), Sant Josep de Sa Talaia (between 5 and 11.3 million and up to 17.7 million), Santa Eulalia del Rio (up to 19.9 million and with a maximum square meter value exceeding 27,000 Euro/m2) and Soller ( up to 19.9 million) 10 and 13 million). Other houses in towns such as Alaro, Alcudia, Deyá, Esparles, Estellencs, Llucmajor, Mahon, Marratxi, Santanyl and Sant Antoni de Portmany exceed five million euros.
Barcelona and Girona are the provinces where the luxury segment is concentrated in Catalonia. In the first one, in addition to the capital, where detached houses, flats and penthouses reach 5, Cabrera de Mar, Sant Cugat del Vallés, Espulgues de Llobregat, Gavá, Sitges and Sant Andreu de Llavaneres (up to 9.7 million euros) stand out. There are exceptions up to 6 million euros and 12.5 million euros. As for Girona, you can find houses worth up to 9.5 million euros in towns such as Blanes and Castell-Platja D’aro.
In Andalusia, the luxury and super luxury segment is concentrated in the province of Malaga. Places such as Benahavís (isolated cases up to 12.6 million euros and above 26.5 million euros), Casares (up to 6 million), Marbella (up to 12 million) and Estepona (between 3 and 5 million) stand out; and in San Roque, Cádiz (between €8.4 and €11 million).
In the Madrid Region, houses worth more than five million euros are mostly located in areas such as Alcobendas (up to 9 million), Pozuelo de Alarcón (up to 9 million) and the capital, where the typology is more diverse. Properties, apartments and penthouses and duplexes up to €11 million.
Multi-family homes make up almost 22% of the luxury market, with an average surface area of 269 m2 (which can reach 500 m2), while detached residences top the list with 70% and an average surface area of 505 m2. , with data up to 3,000 m2. The highest values correspond to the villa type, while their prices can exceed 12 million, while the most expensive multi-family houses can exceed five million euros. Tecnitasa Group also valued properties with exceptional prices exceeding 50 million euros.
“The main profiles of luxury home investors are Europeans (Germans, British, Swedes or Swiss) and increasingly Americans (Mexicans, Venezuelans and Americans, among others); On the one hand, there are senior executives of companies aged between 40 and 60. those who are looking for a holiday home to spend their holidays with their family in their country of origin and rent it for the rest of the year; or, on the other hand, developers who make large investments and re-rent or sell houses after their renovation,” explains Luis Díaz.