23 April 2018 – Eje Prime
Luxury homes in Spain are becoming increasingly more expensive. The luxury residential market saw the value of prime homes increase by 18% during the first quarter of this year. The average price paid during the 3 months to March for these kinds of properties amounted to €924,000, significantly more than the €780,000 recorded by this exclusive branch of the segment during the same period last year, according to data from Lucas Fox.
The strong performance of the Spanish economy in recent times is once again stimulating demand from domestic and overseas investors to purchase homes in the country, above all along the coast and in the major cities.
According to the report from the real estate agency specialising in luxury homes, Marbella and Sitges are the most prime area of this market, and they are monopolising business along the coastlines on which they are located, the Costa del Sol and Costa Brava, respectively.
In the case of Marbella, the city accounted for 67% of the sales that were completed in the region, whilst on the most southerly coast of Cataluña, Sitges accounted for half of all the business on the Costa Brava. “We saw a tremendous rate of growth in sales in Girona and its coastline during the first quarter of 2018”, said Tom Maidment, Director of Lucas Fox Prime.
Foreign investors account for 13% of the prime market
“International buyers of second homes have been more active, with a notable increase in the number of British buyers”, explained Maidment. In this regard, the director added that “confidence in the market and in the Spanish economy has been consolidated and concerns over Catalan independence have disappeared”.
In total, in 2017, 13% of the purchases undertaken in the luxury residential sector in Spain were made by overseas investors, who acquired 61,000 homes, almost as many as the 65,000 properties bought by foreigners in 2007.
By nationality, the British were the most active buyers, accounting for 15% of the sales made by foreigners, followed by the French, 8.6%; and the Germans, which accounted for 7.8% of the acquisitions of this type of luxury real estate by foreigners.
In the case of Lucas Fox, 77% of the operations that the agency closed during the first quarter of the year related to international clients, most of whom came from the United Kingdom, but also from neighbouring France, the Scandinavian countries and the USA.
Original story: Eje Prime
Translation: Carmel Drake