Investment in luxury housing is up 20% this year, with Madrid and Barcelona leading the way

Investors’ appetite for luxury housing in Spain is growing. The improved socio-health situation after the pandemic has led to the fact that large investment portfolios have increased their presence in this market by 20% in 2021.

“In Madrid, the sale and purchase of luxury real estate have always been concentrated in the aristocratic quarters, especially in Salamanca and Chamberi. However, Madrid also appealed to Latin American investors from Mexico, Colombia and Venezuela. In these cases, the most sought after areas have always been La Moraleja, Pozuelo de Alarcón and Boadilla del Monte, ”explains Iñaki Unsain, President of the Spanish Association of Personal Property Buyers (AEPSI).

According to the latest figures released by the Tax Agency, Pozuelo de Alarcon is the most luxurious municipality in Spain, with a gross income of 82,188 euros.

In Barcelona, Pedralbes, Sarrià Sant Gervasi, Ensanche Derecho and Pueblo Nuevo are the most sought after areas among clients looking for luxury homes, according to Unsain. Barcelona’s provinces of Matadepera, San Vicente de Montalt, Sitges and Castelfedels are also gaining popularity in recent months.

European investors, namely the French, Germans and Belgians, are increasingly strengthening their presence in these municipalities. Moreover, their presence is starting to reach pre-pandemic levels.

Regarding the characteristics of luxury houses, the expert explains that although each property has its characteristics, some characteristics are the same in the most luxurious houses in Spain. “The most sought-after properties have an area of over 150 square meters, home automation, security and a unique style,” says a personal buyer.

Most of them cost more than 1 million euros, although this cost may vary depending on the location and characteristics of each property. In addition, self-isolation and other restrictions have generated new demand in the luxury real estate segment. Demand has increased for houses with open-space elements such as gardens and terraces.