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Demand for Luxury Property Increases 80% in Three Years

Luxury property demand, According to leading property portal in Spain, Idealista.com, the number of clients making appointments to visit luxury properties (those valued at more than 1 million euro) has increased by a huge 78.8% since the country’s worst year in real-estate business, 2013.

Despite this headline, we’re still talking in small figures. In August 2013, only 3.6% of the searches on the property site fell into the luxury category, while this year, the figure has risen to 4.2% of the total.

With regards to prices, the average price tag of a luxury home in Spain now registers at around 2 million euro, which is 6% higher than in 2013.

The number of luxury properties currently on the market has also gone up, with 2.3% of the total up for sale in 2013 to the 2.7% that are now waiting to be sold.

Three quarters of the total number of luxury homes are concentrated in just four provinces within the country: Madrid, Barcelona, Malaga and the Balearic Islands.

And, 84% of these have four bedrooms or more, while 65% have an area of between 200 and 600 square metres.

Not all of these properties, luxury property demand, however, boast a swimming pool; only 60% of them are equipped with this luxury, although this is dependent on where the property is located.

Properties situated within the following areas are the most likely to contain a pool: Sotogrande (Cadiz), Los Monteros (Marbella), Javea, Sierra Blanca (Marbella), Castelldefels (Barcelona), Sitges (Barcelona) and Montealina (Pozuelo de Alarcón).

Variation of prices

Prices have varied in the last three years, and have increased more in some areas than others. For example, properties situated on the coast in destinations that are popular with international buyers have seen their value increase as much as by 35%.

Areas where luxury property prices have increased by more than 15% include Vila de Eivissa (Ibiza), Sant Feliu de Guixols (Girona), Sierra Blanca (Marbella) and Los Monteros (Marbella).

However, prices have remained stable since 2013 in Palma de Mallorca, the Salamanca district of Madrid, La Moraleja (Madrid) and Pla de Remei (Valencia).

Greater interest

As with everything, trends change, and what was once popular no longer is. This is the same with property and the various destinations that people choose to live.

In the last three years, some destinations have become more popular than before, luxury property demand, while others not so much.

Idealista has reported a greater interest in luxury homes in the following areas: Sant Feliú de Guixols (279%), Sant Josep de Sa Talaia (177%), Palma de Mallorca (173%), Javea (158%) and Sierra Blanca (150%).

At the other end of the scale, buyers are not so interested in city areas including La Finca, Montealina, La Moraleja and El Viso, all located in Madrid.