Tag: Lucas Fox

Lucas Fox: Luxury House Prices Rose by 18% in Q1

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

Luxury Home Sales Soared in Marbella, Ibiza & Valencia in 2017

8 March 2018 – Eje Prime

Although the focus in the residential market tends to be on Madrid and Barcelona for almost all indicators, Marbella, Ibiza and Valencia are emerging as the leaders of the luxury home segment in Spain. The offer of sun and beaches along the Mediterranean Coast, accompanied by the economic recovery across the country, attracted lots of big shot investors in 2017, who purchased more homes at higher prices.

Along the Coast del Sol, where the exclusive Marbella resort stands out, the luxury residential market grew by 28% during the first half of last year. In total, 160 luxury home sales were recorded during the first two quarters of the year, up from the 125 transactions signed during the same period in 2016.

Moreover, the value of those homes in the area multiplied by almost five times during the year. The percentage of international investors in prime residential properties along the Málaga coast reached 31% during the fourth quarter of 2017, according to data collected by Lucas Fox for its report about luxury housing.

Estepona and the coast of Mijas are tipped as the two areas to watch this year since they will see the most new build projects (…).

Meanwhile, in Ibiza, the lack of residential stock and the high permanent demand that has existed on the island for several years, caused prime house prices to rise to €5,165/m2 on average in 2017, up by 51% compared to 2016.

Similarly, the volume of sales in the Balearic Islands rose by 10% last year, with a total of 215 transactions. Of its many highlights, “the interior of the island is a ‘love at first sight’ place for many overseas buyers”, says Rod Jamieson, Commercial Director at the real estate agency. Areas such as the town of Santa Gertrudis “are a magnet for artists and writers”, states the executive.

Making a beeline from the Balearic Islands to the peninsula, Valencia is also taking advantage of the recovery in the luxury residential market in Spain. Sales of high-end properties grew by 85% according to data from Lucas Fox, with an increase in the sales value of 72% (…).

A hopeful outlook for 2018 

For 2018, forecasts in the sector indicate that more luxury homes are going to continue to be sold with a value that will also record increases. Juan Luis Herrero, Partner at Lucas Fox in Valencia, highlights that in the city “confidence in the real estate market is going to continue to grow”. In his region, “there is going to be more movement in the market for new build developments, both in Valencia as well as on the outskirts, and international buyers are going to continue to play a very important role in the market, especially in areas such as Eixample, Ciutat Vella, Alameda, Ciencias and Patacona” (…).

Meanwhile, Jamieson points out that “the official data indicates that the market has recovered from the crash of 2008, and in some areas, the number of transactions is reaching similar levels to those seen before the crisis” (…).

Along with Valencia, another province that is aspiring to grow significantly over the next few months and years is Girona. “We believe that 2018 is going to be a decisive year for new build developments along the Costa Brava”, says Tom Maidment, Partner at Lucas Fox. “In 2017, the province of Girona saw a YoY increase of 25% in the sale of new building developments, and we expect that this figure will increase considerably over the next two years (…)”.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Lucas Fox Triples Presence in Valencia to meet Demand from International Clients

31 January 2018 – Eje Prime

Lucas Fox has multiplied its network in Valencia by three. The real estate agency has opened the doors of its third office in the regional capital. Located in the Ciutat Vella neighbourhood, the company’s newest branch is located at number 42 Calle del Mar.

The objective of the multinational firm with this opening is to be closer to vendor clients to increase its portfolio in Ciutat Vella, in order to respond to demand from international clients in pursuit of the Spanish sun.

Currently, Lucas Fox’s delegation in Valencia employs a team of twenty professionals, including five architects. In 2017, the real estate firm launched a portal for prime transactions as one of the new drivers of its growth. It is also considering expanding into other regions of Spain, including Madrid.

Original story: Eje Prime

Translation: Carmel Drake

Madrid’s Gran Vía To Be Part Pedestrianised By 2019

10 November 2017 – Expansión

On 4 April 1910, King Alfonso XIII seized a silver pick to symbolise the start of the construction of Madrid’s Gran Vía. It took 21 years to finish the 1,306m long thoroughfare, which, as well as connecting the east and west of the capital, became a showcase for large department stores (today’s multi-nationals fashion chains), cinemas and theatres (of which less than half of the original spaces are now left) but, above all, a catwalk for passers-by of every kind; because Gran Vía is a concentrated example of the 21st century society.

And this road is going to be subject to construction once again from February next year, with the aim of restoring value for two of its major stars: the pedestrians and the historical buildings that stand tall on this street, which we barely have time to appreciate given the frenetic pace of life today.

This change will undoubtedly have consequences for the real estate market in this area, which is already quite unusual. “It is a neighbourhood with just a few, very special homes and so logically, they are going to go up in value significantly”, says Julio Rivero, real estate consultant for the central region at Engel & Völkers.

For Daniel Díaz, architect and agent at Lucas Fox in Madrid, “giving pedestrians more space is something that is being done in all of the major cities in Europe. It makes a lot of sense on Gran Vía because it has more people walking along it nowadays than it does vehicle traffic”. Díaz recalls the case of Serrano and how the reduction in the number of lanes and the widening of the pavements there has been a revulsive, improving trade in the area.

Expansive effect

Gran Vía has so much force that it magnetises the area, and almost twenty streets flow into it, with a lot of life of their own, such as San Bernardo, Valverde, Fuencarral, Hortaleza and Barquillo. The manager at Lucas Fox predicts that this reactivation will have a porous effect: “The benefits of pedestrianisation are going to expand to the adjoining streets and squares, such as Plaza de Pedro Zerolo and Calle Fuencarral, which have more homes that are going to go up in value”. For Díaz, this will attract the domestic market to the area once again, which has been dominated by tourists and young people in recent times.

Although none of the experts consulted doubts that the quality of life will improve, it is clear that some people will inevitably lose out. Ana Calderón, Director of Real Estate at Home Select, the real estate consultancy that manages several tourist apartments in the area, indicates the damage that the limitations on traffic will have for properties owners in buildings such as Gran Vía 48; they also purchased parking spaces in a large underground car park there (…).

The Town Hall’s future project has been explained in several different ways (…) and the details of the plans have not been completely defined, but it seems certain that the current six lanes will be reduced to four. In this way, the 55,000 vehicles that currently travel on this thoroughfare every day will be reduced to just 10,000, according to the Town Hall’s forecasts (…).

According to Sergio Fernández, Director of Retail at JLL, the changes will have a clear beneficial effect for shops, above all due to the plan to widen the pavements, which will be undertaken to resolve the severe pedestrian (traffic) jams that the street suffers from on the weekends and during peak shopping times (…).

The new face of Gran Vía will require an investment of €9 million and is likely to be ready by the spring of 2019.

Original story: Expansión (by Loreto Ruiz-Ocaña)

Translation: Carmel Drake

Latin American Investors Bought One Third Of Madrid’s Luxury Homes In H1

6 October 2017 – Expansión

Yesterday morning in Madrid, the luxury real estate agency Lucas Fox presented its “Real Estate Market Report”, which analyses the behaviour of the property sector during the first half of the year, and more specifically, the profile of purchases in the premium segment in Madrid during the period.

Undoubtedly, the most significant finding is that, according to the agency, buyers from Latin America accounted for almost one third (31%) of all the transactions undertaken, compared to 11% in 2016. In terms of the reason for their purchases, 62% of the buyers at Lucas Fox Madrid acquired a home for investment purposes, whilst the remaining 38% were looking to purchase a second home.

We have seen sales increase by almost one third compared to the volume of transactions last year and we expect them to multiply five-fold by the end of this year. Increasingly more international buyers are choosing the Spanish capital as the best option for investing, thanks to the high medium and long-term yields, the strong rental income and the excellent lifestyle that Madrid offers”, said Rod Jamieson, Partner at Lucas Fox Madrid.

In its recent report, Spain’s National Institute of Statistics (INE) indicated a 15% increase in the volume of property sales in Madrid during the first half of 2017, with respect to the same period in 2016. The number of transactions completed during this period was just 9% lower than the peak levels recorded at the height of the market. Meanwhile, according to data from the Ministry of Development, the volume of sales in the luxury residential market (homes worth more than €900,000) increased significantly, by 27%, due primarily to the increase in international demand.

Prices at the end of June 2017 in the Community of Madrid had increased by 6% with respect to the same period in 2016. Nevertheless, according to data from the real estate portal Idealista, prices rose by even more in the most prime areas of the city, such as Salamanca and Chamberí (by 10% and 14%, respectively), where demand is greatest. For this reason, Lucas Fox inaugurated its second Property Lounge in Madrid yesterday, located on Calle Bárbara de Braganza, 8; it is designed to respond to the growing demand for luxury properties in the capital.

Original story: Expansión (by L. Ruiz-Ocaña)

Translation: Carmel Drake

Rockefeller Family To Sell Luxury Homes In Madrid For €8,200/m2

6 October 2017 – El Confidencial

They won’t obtain the building permit from the Town Hall of Madrid until the end of this month, but they will start taking the first reservations from next week. The latest development of luxury homes to come onto the market in the heart of the Spanish capital is located on Calle General Martínez Campos 19 and it has a very special owner: The Rockefeller Group International. The company was founded by the magnate John Rockefeller, who created a genuine fortune thanks to his business in the oil sector at the end of the 19th and beginning of the 20th century, and whose youngest grandson, the magnate, banker and philanthropist David Rockefeller, died just a few months ago at the age of 101.

The building was acquired by the real estate fund Europa Capital last summer, in partnership with Richelieu Developments, for €25 million. This fund, which is headquartered in London, is the vehicle through which The Rockefeller Group – which also controls the Japanese company Mitsubishi Estate – undertakes its investments in Continental Europe.

The property, constructed in 1931 and completed refurbished, has a surface area of 6,5000 m2 spread over seven floors and is located just 500m from Paseo de la Castellana, in Chamberí, and very close to the sought-after neighbourhood of Salamanca. The property will contain 27 luxury homes, with all kinds of amenities – a 24-hour concierge service, an indoor swimming pool, a rooftop swimming pool, a gym and spa area, a car park and storerooms – and will include five penthouse apartments, of which three will be duplexes.

The average price of the homes will stand at €8,200/m2, according to Alexander Vaughan, founder together with Stijn Teeuwen of Lucas Fox, a real estate agency specialising in the sale of luxury homes and which has made a strong commitment to the high-end market in Madrid.

The properties will be three and four bedroom homes as well as two and three bedroom penthouses with terraces. The homes will range in size from 200 m2 to 457 m2, and so the price of the units will vary from €1.6 million to €3.9 million. The three duplex penthouses will also have their own private terrace, off of the living room, and an additional terrace on the rooftop. The homes are expected to be ready by the end of 2019.

As is often the case with investments by foreign companies, Europa Capital, has sought out a local partner to construct the development. In this case, it has teamed up with the Madrilenian property developer Richelieu Developments, which specialises in luxury projects (…).

Luxury homes in Madrid are booming

The luxury residential market in both Madrid and Barcelona is in full swing. In the Spanish capital alone, there are more than twenty projects underway. Not in vain, according to the real estate agency Lucas Fox, an enormous appetite exists for these types of properties, which are still a lot more affordable than similar assets in other European cities, with a clear potential to appreciate and with returns that range between 4% and 5% in both cities. The “independentista effect” has not been felt yet in Barcelona, according to Rod Jamieson, Partner at Lucas Fox Madrid, who also marketed José Abascal 48 (a project that the fund Shaftesbury built) and Fernando VI 19 (a project that has been completed by Gran Roque Capital, owned by the Venezuelan Capriles family).

The agency is seeing huge bullish potential in the luxury market in Madrid, where the firm has increased (its turnover) by 30% in one year and see a 170% rise in its transaction value. Moreover, Lucas Fox has detected increasingly more international investors in the market. In fact, Latin American buyers now account for almost one third (31%) of all of the company’s sales, compared with 11% in 2016, whilst just under half (46%) are domestic buyers. Moreover, 62% of sales are being closed for investment reasons (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

Lucas Fox: Luxury Home Sales Soared By 31% In 2016

27 February 2017 – Expansión

Luxury homes enjoyed a buoyant 2016. Sales soared by 31% thanks to the boost from foreign investors, above all in cities such as Barcelona, where the purchase of high-end residences increased by 69%, according to the latest report from the real estate company Lucas Fox, which specialises in high-end homes. In Madrid, the increase amounted to 12%.

The study attributes this mini-boom to the declining demand for properties in London following the Brexit referendum. That “has caused citizens from outside the EU to be more interested in Madrid and Barcelona, and the trend is set to continue in 2017”.

Foreign investors will continue to be the main driver behind Spain’s luxury residential sector. They now account for 65% of the market, according to the real estate company. The remaining 35% are Spaniards.

Buyers from the UK and Ireland accounted for 11% of overseas purchasers in 2016, whilst French buyers accounted for 5%. Purchasers from the Middle East were the cohort that grew by the most, to account for 8% of all luxury residential property purchases. Scandinavian buyers accounted for 6%.

In terms of buyer motivation, 30% acquired a property as a primary residence and 43% as a second home. It is worth remembering that 75 million tourists visited Spain last year, a historical record. There was also a considerable increase in the number of buyers who purchased properties for investment purposes (22% of all purchases by overseas buyers). Finally, 3% bought because they were looking to obtain a Golden Visa, in other words, the permit to reside in Spain that is granted to real estate investors from outside the EU.

In fact, Lucas Fox estimates that demand for Spanish properties from buyers outside the EU, including from the USA and the Middle East, “will cause the current bullish trend to continue throughout 2017, thanks to the Golden Visa program”.

During the first three quarters of 2016, foreigner buyers spent just over €47 million on new build and recently renovated properties, which represents a YoY increase of 9%. The apartments that are most in demand are those located in classic buildings in prime areas, measuring between 150 m2 and 200 m2 and worth between €1 million and €1.5 million.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake

17 Luxury Homes Go Up For Sale In Madrid

7 October 2016 – El Economista

The luxury housing market in Madrid is booming, however, the supply of newly built homes is very limited. In fact, José Abascal 48, located in the sought after Madrilenian neighbourhood of Chamberí is marketing itself as the only luxury development in the centre of the capital with an occupancy licence.

Knight Frank and Lucas Fox will be responsible for marketing the 17 homes that comprise this exclusive development. The properties will go on the market priced at between €600,000 and €5 million.

“Four units have already been reserved and we have 65 visits booked for the next few days”, explained Humphrey White, the CEO of Knight Frank in Spain. Given the product shortage and the high quality of these apartments, both consultancy firms expect that these homes will be sold very quickly.

The project, which comes onto the market today, is not what was originally designed for this nine-storey property, which was initially going to contain twice as many homes. “We have adapted the building to the current needs of the market, given that the previous plans were designed during the real estate boom”, explained Frédéric Mangeant, Director of Shaftesbury Asset Management in Spain. The fund is the owner of this property, which was constructed in the 1940s and will now set the bar for prime house prices in this area of Madrid.

The properties in José Abascal, 48 will be sold for between €6,000/sqm and €12,000/sqm following a comprehensive renovation, carried out by the architect firm Touza. It contains apartments ranging from 100 sqm properties with one bedroom to two- to five-bedroom attics and duplexes measuring more than 400 sqm in some cases, as well as some four-bedroom homes.

Behind the protected, neo-classical façade, which represents the bourgeois scenery of the street, the homes contain living rooms measuring between 70 sqm and 100 sqm, with large terraces, bedrooms with en suite bathrooms, dressing rooms and large kitchens with islands.

The common areas represent a particularly important part of this project. The building has a gym and 160 sqm of water, with a spa comprising a jacuzzi, sauna and Turkish bath. The new residents will also have a very large atrium with natural light, thanks to the skylight, and events may be held there on the ground floor.

The luxury of this development is also evident in the garage. With a robotised parking system, managed by the company Integral Park Systems (IPS), the residents of this building will not have to park their own vehicles and may also request their cars from their living rooms, because the homes are all automated.

(…). In this way, the software records the activity of each car and if several users tend to pick up their cars at 8am, the system will move the vehicles so that they are as close as possible to the pick up point at that time.

That is the icing on a cake that has already whetted the appetite of many potential buyers of luxury homes in Madrid.

Original story: El Economista (by Alba Brualla)

Translation: Carmel Drake

Marbella, The Most Sought-After Spanish Real Estate Market

3 February 2016 – El Mundo

All the agents of the Spanish real estate market agree on stating that 2016 will be the year for the real estate recovery to settle down completely in Spain. One of the markets that reflect so perfectly is Marbella (Malaga), where an increase in the number of operations involving luxury properties has been observed, as declared by Lucas Fox, a real-estate agency specialised in top-quality market.

According to the Association of Architecs of Malaga, in 2015 492 planning permissions were authorised in Marbella. This town has presented a new-work property demand that exceeds supply.

Such new luxury dwellings are the most wanted, and most of them get sold in few months after release. Lucas Fox Marbella sale prices were positioned around 3.5 million Euros in 2015. Their most significant sale was to a US purchaser who bought a 12.5 million-Euro property in the exclusive residential area La Zagaleta.

And Marbella still remains one of the most appealing Spanish markets, particularly for the foreign investor. According to Stephen Lahiri, director of Lucas Fox Marbella, this destination “remains to be a favourite for many customers from the north of Europe, specially United Kingdom, Benelux and Scandinavia.” This reflects on the increase of foreign purchasers, whose profile is changing, since “there are ever younger and focus even more on lifestyle, design and quality”, adds Lahiri.

Lucas Fox opens new branch due to growing demand

As a response to such property demand resurgence in this popular Spanish area, Lucas Fox has recently inaugurated its sixth Property Lounge in the luxury district of Nueva Andalucia. The office will operate in luxury areas in Marbella and the surroundings regions, in addition to emerging zones such as Estepona and Benahavís.

“Since its conceiving in 2013, Lucas Fox Marbella has turned into an essential part of overall business,” adds Lahiri. “Our new Property Lounge reflects the need to place the good-quality property demand resurgence in this popular location in Spain,” he states.

Original story: El Mundo

Translation: Aura Ree

“Lifestyle Investors” May Be Essential For The RE Recovery

9 July 2015 – El Mundo

The international estate agency Lucas Fox has published a report about the Spanish real estate sector, which illustrates the changes that the market has experienced since 2005, with prices peaking in 2007 and subsequently dropping until the middle of 2013. During 2014, the sector experienced a period of moderate stabilisation, before the current recovery kicked in with a stronger emphasis on high-quality properties and a long-term view of investment linked to lifestyle.

According to the agency, prices peaked in 2007, and remained stable in popular areas, such as the Costa Brava and Sitges, where they peaked in mid-2008. House prices then decreased by up to 40% in most areas, but less significant declines were observed in the “lifestyle markets” of Ibiza and the most sought-after areas of Marbella.

Meanwhile, prices experienced a steady decrease in Barcelona until Q3 2013, when the sector began to recover gradually to reach €3,263/m2 by the beginning of 2015.

On the other hand, Madrid and Valencia followed a similar pattern, but with lower values. The report prepared by the estate agency shows that both cities still have to maintain their quarterly growth rates in 2015. According to Alexander Vaughan, “over the last two years, thanks to the growing confidence in the recovery of the Spanish economy and in the Euro, in general, we have seen a revival in the market, with price adjustments at the global level”. Moreover, he adds that “Spain is as charming as ever and we are seeing a huge boom in the number of “lifestyle investors”.

Since mid-2013, the number of transactions has increased continuously in all of the regions served by the estate agency. This, the agency explains, indicates greater confidence in the market and more recognition from buyers. Nevertheless, there is still a long way to go before sales volumes return to their 2007 levels.

Original story: El Mundo

Translation: Carmel Drake