In the rapidly changing economic and international circumstances, the European real estate market is recovering after the pandemic. In 2022, the main driving force was the trend of strong growth in sales and prices for residential real estate. Interest in villas, condominiums and apartments in Europe has grown significantly, and Spain has become one of the most popular destinations.
The Spanish market attracts not only an ordinary buyer, but also a wealthy one. This year, about 41% of home buyers were looking for a property for 2.5 million euros or more. The remaining part of the customer base focuses on finding apartments. The most elite ones do not exceed 2.5 million euros.
The demand for virtual tours when buying luxury homes has grown significantly. This makes it easier to navigate and make purchase decisions, especially for foreign nationals who, for many reasons, cannot or do not want to move from country to country to evaluate real estate.
It is also worth noting that the Spanish cities of Madrid and Marbella have become one of the European leaders in sales of premium housing. We will run you through them all below.
Luxury houses in Marbella
The growth trends of the elite sector are prominent in Marbella. This place is home for some of the most expensive houses, which find wealthy buyers from all over the world. Especially those who are looking for a quiet place from the oncoming economic turmoil, because the premium segment of the market in Marbella has proved resistant to both the COVID-10 pandemic and the current shocks — sales growth remains stable throughout 2022.
However, in the second half of this year, there was a slight decline in sales and prices of residential real estate. According to forecasts, this trend will develop in the coming months. However, while sellers of the elite sector report a slight drop and indicate that there are many buyers who want to buy luxury housing at current prices.
Marbella is a city on the Costa del Sol. The region offers a favorable climate to stay all year round and quick access to various social amenities, such as shopping malls, entertainment venues, including golf courses, international airports for fast flights.
Luxury houses in Madrid
As mentioned earlier, the Spanish luxury housing market is booming. Various analytical sources point to this, including the international consulting company Knight Frank. The latest KF reports that Madrid is one of Europe’s fastest growing markets.
The capital of Spain is confidently strengthening its position as one of the most sought-after investment and relocation destinations among the super-rich international buyers. Thus, prices of luxury housing in the city are expected to rise by 6% by early 2023.
The market offers many different real estate options for sale, but the average large luxury housing in the capital is a property with an area of about 105 square meters for 1 million euros.
Trends in the luxury real estate market
Today, only the area and location are no longer important for buyers and investors in real estate. At the moment, various features of the property, its condition and history are also important for clients. Against the background of this approach, the secondary housing market is actively growing with the widest range of houses for sale.
Such houses are usually renovated and/or restored — everything, from windows to floor coverings, meets modern standards, and buyers have enough opportunities to find an offer to their liking. Often, old real estate is equipped with various modern automation, alarm and security technologies.
Perhaps, the most important trend of the last two years has been the demand for energy efficiency and environmental safety in housing construction. Individual sellers, real estate agencies and developers do not ignore this demand and try their best to satisfy it.
Old real estate is being restored with new, eco-friendly materials, and developers are launching their new projects using not only advanced materials, but technologies, structures and design to create a comfortable living space with minimal impact on nature.