Prices increased 13% due to active participation in sales of millennials

Prices increased 13% due to active participation in sales of millennials

According to Sotheby’s, millennials are now leading the demand for luxury houses worldwide, and this group already accounts for more than a third of luxury goods sales. At the same time, transactions are concluded both on a call-out basis and remotely.

This trend is actively felt in Spain, where the value of the transactions has grown by 13.3% this year. The number of transactions is already significantly higher than the indicators of 2020 and is approaching the indicators of 2019. The rise in prices was particularly noticeable in the Community of Madrid, where the cost of housing increased by 29.5%. The Balearic Islands are in second place, where prices increased by 15% compared to 2019.

In addition to a 13% increase in deal value, new construction transactions have been up more than 40% since the start of the pandemic. It was 58% in the Valencian Community, 56% in the Madrid Community and 45% in the Balearic Islands. The price per square meter in Spain is also rising, especially in the archipelagos. In the Balearic Islands, offers increased by 12%, which led to an increase in the cost per square meter to 2,183 euros, while in the Canary Islands, the value of real estate increased by 6%, and the price per square meter reached 1,417 euros.

Another novelty in the sector is the increased investor demand for so-called “green” products. Experts say premium brands, manufacturers and retailers are facing increasing pressure from consumers to offer sustainable products. Buyers already know that sustainable houses benefit the environment and are also attractive to consumers regarding electricity bills.

Remote work also played a role. Many people did not have homes suitable for work and decided to move to larger premises due to the forced habits changes caused by the pandemic. In addition, experts note an increased interest in houses that have special devices, such as air purifiers, to create a clean and safe environment in rooms that do not receive fresh air.

“One of the buyers’ priorities is the pursuit of well-being, which is expressed in improving the internal environment quality. Most are willing to pay more to enable some of these features,” says Alejandra Vanoli, Managing Director of VIVA Sotheby’s International Realty.

All these data show that the market is actively developing despite the pandemic has significantly changed the business model and parameters of housing search, analysts say. Sustainable development, open spaces and ecology are three trends that have become synonymous with luxury after the coronavirus hit the country.

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