The luxury real estate sector was among those areas that suffered the least during the crisis caused by the pandemic. The latest update of Knight Frank's Prime Global Cities index reflects the good performance of the luxury residential real estate sector worldwide: for the period from January to September, an average growth of 9.5% was demonstrated compared to the same period last year. In this ranking, Madrid is ahead of other well-known cities such as London and New York, and stands out as a city with one of the best indicators both in terms of prices and transactions.
Take into account Prime Global Cities Index, owned by the real estate consulting company Knight Frank, which analyzes the dynamics of prices for luxury residences located in 46 major cities around the world. According to it, prices for luxury real estate in Madrid have increased by 2% over the past year, including September data.
It is also worth noting that the growth in the volume of luxury real estate in the capital during the third quarter of 2021 amounted to 0.5% compared to the second quarter of this year. The Spanish capital also stands out in terms of the number of transactions: the growth in housing sales was more than 100% compared to 2020.
«Madrid's luxury sector has not lost its appeal during the pandemic», said experts attending SIMA Autumn, which was held recently at Ifema. The same speakers explain: as for the situation with Madrid, there may be a problem in the coming months, which will consist in a lack of supply of this type of luxury real estate.
With regard to the national composition of investors, the situation looks like this: real estate in Madrid is mainly interested in Mexican and Venezuelan secured investors. «In the case of Barcelona, these are more European sources of investment», the same SIMA Autumn speakers add.
In terms of the dynamics of the number of transactions, the main cities of the world are also Spanish Madrid and Barcelona. In the case of the capital of Spain, the growth compared to 2020 was more than 100%, which is more than in Catalonia, and that is more than twice the growth recorded in Lisbon, which ranks third in this indicator according to the Knight Frank report.
«The data for the third quarter shows us a clear recovery that is taking place in the luxury housing sector around the world», explains Carlos Zamora, partner of Knight Frank Spain. «The Madrid data is starting to reflect how demand is recovering in major cities», Zamora adds. On the other hand, the capital of Spain arouses the interest of investors and large owners as a region with a cosmopolitan character and a dynamically developing society, which, in turn, acts as the economic engine of the country.