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