How has the pandemic affected luxury real estate growth?

How has the pandemic affected luxury real estate growth?

The luxury real estate sector in Spain is on a solid recovery path.

The pandemic has seriously slowed down markets across the board, including freezing deals. However, prices have stuck or increased in most neighbourhoods, major capitals, and coastal areas regarding premium housing.

The latest price report from the source Idealista reports that October’s average Spanish house price rose 3.7% year on year. Currently, the average cost of luxury housing per square meter is 4,000 euros.

In compiling the report, analysts compared more than 160 luxury housing markets in Spain, divided between districts and quarters in various provincial capitals and the majority of districts in coastal municipalities, known for their homes worth more than one million euros.

Where elite housing has risen in price the most

The primary growth in prices in the luxury real estate market is in the Balearic Islands and Malaga areas. Over the past two years, the cost at the end of October in the Genova area in Palma has increased by 41.1% and reached 5,881 euros per sq.m. In 2019, the indicator crossed the line of 4,000 euros per sq. M.

Among the ten neighbourhoods with the most significant increases in luxury house prices before and after the pandemic, half of them saw the price that owners ask for their homes above this benchmark.

These areas include:

  • Montemayor-Marbella Club in the Malaga city of Benahavis - an increase of 39.2% to 4,312 euros per square meter;
  • La Zagaleta El Madroñal - up 3.7%;
  • Cala Vignes in Calvia - 37.7% up to 4,957 euros per sq.m.

Even though Marbella is not in the first position, it is the city that most often breaks new records. Its districts Las Brisas (30.1%), Los Monteros (30%) and Los Naranjos (24.7%) are among the ten leaders in population growth since the pandemic.

Along with them, three Balearic regions have been added to the list:

  • Es Camp de Mar in the municipality of Andratx - 29.8%;
  • The village of San Jose in San Josep de sa Talaia - 27.2%;
  • Barry Well area in Girona - 29.9%;
  • Paseo Maritimo area in the Balearic capital - 29.3%.
Share
Subscribe to newsletter
Subscribe