If there is one key segment within the real estate market that is immune and practically crisis-proof, it is undoubtedly luxury residential real estate. Prime assets maintain their appeal, and during this second quarter of the year, they will continue on a growth path. Prices, on the other hand, will continue to rise due to notable demand versus the shortage of supply, but they will do so more moderately, according to experts.
The real estate network specialized in managing luxury assets, The Simple Rent, estimates that luxury properties will, in fact, lead one of the largest growths: around 43%.
Our country is the third favorite European power for real estate investment and the eighth in the world ranking, according to Colliers. But it is also the fourth country in the world and the first in continental Europe where “ultra-rich” buyers, those fortunate enough to have wealth exceeding 30 million euros, invest the most.
As stated in the latest Engel & Völkers report on the 2023 real estate market, Madrid, Barcelona, and Malaga are consolidating as preferred destinations. The real estate company specializing in high-end properties forecasts a 15% increase in transactions and a 5-7% rise in prices in 2024. It also estimates that the purchase of properties priced above one million euros will grow by 40% in 2024.
The most expensive square meter in spain
In general, luxury housing in Spain is experiencing a boom, but one of the locations that stands out as a focus of attention and investment in the segment is Marbella (Malaga). For more than six decades, it has boasted being one of the most exclusive locations in the Mediterranean. The town has earned its leadership in the prime market with villas that, in some cases, even exceed 36 million euros. Marbella attracts great fortunes from different parts of the world – both long-established and emerging – but its appeal goes even further. It is not only one of the favorite destinations as a holiday residence in our country but also becomes the home of many foreigners.
The city and its surroundings are home to distinctive homes and streets with the most expensive properties in our country. According to Idealista, Marbella is one of the “epicenters of ultra-luxury.” Specifically, it has the highest transacted square meter in Spain – 33,379 euros per m2 – and is located in the Marina Puente Romano urbanization, with properties situated on the beachfront. The square meter in Marbella is thus positioned on a global scale at the level of major European hubs like Paris or London.
Panorama Properties, the oldest real estate agency in the area, reflects in its latest annual report on the luxury market that the sale of high-end housing (those exceeding two million euros) has increased by 20% in Marbella compared to the figures recorded in 2022. This represents the highest sales volume in the last 16 years, with 42,744 residences sold and a growth of 119% in the last decade.
Majority presence of foreign buyers
According to this real estate agency’s analysis, at least 90% of homes worth more than two million euros are sold to foreigners. The British continue to be the buyers par excellence, accounting for 16% of total transactions. They are followed by Swedes and Dutch, with 12% and 8%, respectively, along with Belgians, French, and Germans.
Among the nationalities that are growing the most, there is a notable rise in Swedish and Norwegian investors and a strong surge in Polish buyers, as well as from Eastern Europe. On the other hand, it remains one of the favorite destinations for tourists from the Middle East since the late 1970s. Additionally, the American market has been emerging strongly since 2022.
Besides being a top residential destination, Marbella also attracts major fashion brands, which project their significant real estate ventures here. This is the case with Dolce & Gabbana, which has chosen the town as the location for its real estate debut in Europe, in partnership with Sierra Blanca Estates.
Investing in prime assets through crowdfunding
Marbella and its luxury properties are no longer restricted to large investors. Small savers can also partake in significant opportunities through participatory financing. Urbanitae has already carried out several crowdfunding projects in this line. Among the most recent are the financing operations of two luxury villas: Villa Alcalá and Villa del Generalife. With 2,175,000 and 2,240,000 euros, respectively, both had the participation of more than 1,000 investors in each case.
