Hot summer for luxury real estate

Hot summer for luxury real estate

The luxury real estate sector was no immune to pandemic. In the middle of last year, Barnes estimated the fall in prices in Spain to 20%. However, it can be said that the real estate market as a whole has coped with the pandemic quite well. And this applies more to luxury real estate, in particular.

“Luxury property has experienced a less pronounced fall in prices than real estate in general,” says Emiliano Bermúdez, Deputy Director General of DonPiso. As a result of the current situation, the market expects prices to rise this year by about 3%.

Costa del Sol, Costa Brava, Balearic Islands or Canary Islands are some of the most preferred destinations for high wealth. Do not forget cities such as Madrid and Barcelona, ​​which, according to a study of Barnes Global Property Handbook, are among the top destinations for real estate investments.

“Extensive cultural life of both cities, weather and the most attractive prices place them in the top ten cities in the world,” says Emiliano Bermúdez.

The features listed above are not the only advantages of these places: high quality of life or competitive prices compared to other cities in the area are also worth noting. In addition, a high-quality residential park, which generates interest in buying for the purpose of subsequent sale or lease.

Security issue

The fall in property prices was not as much prominent as it had been expected. There were even some types of real estate, the prices of which did not fall, but even increased.

One reason for this is that the current crisis is different from the 2008 crisis. "Back then the real estate market suffered from structural and systemic problems, while the current one is seeing a decline in demand."

This brake is gradually weakening, partially thanks to progress in vaccination campaigns. “In this sense, luxury real estate market is expected to start growing this year,” says Emiliano Bermúdez. Do not forget that premium property usually provides security for investors. “It has become a reliable property value due to its resilience to the crisis. There are always rich people,” adds Deputy Director General of DonPiso.

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