The Luxury Real Estate Market in Spain: Resilient and Growing

The Tecnitasa Group has conducted a detailed study revealing an astonishing 55% increase in luxury home transactions in the last year. This growth is reflected in a significant increase in valuation reports issued by the company, which have increased sixfold in the last five years. The Balearic Islands lead the market with an average price per square metre exceeding €9,000/m2, showing an increase of 10% nationally since 2021.

The study highlights that more than 70% of luxury homes are villas, while the remaining 30% correspond to other typologies such as flats or penthouses. This market mainly attracts European investors, especially German, British, Swedish, and Swiss, although more and more American investors, such as Mexicans, Venezuelans, Americans, and Canadians, are joining.

In terms of prices, premium, luxury and super-luxury homes in Spain have seen an increase of more than 10% since 2021, reaching €7,660/m2 in 2023. The Balearic Islands stand out as the region with the highest value, exceeding €27,000/m2.

The areas with the highest concentration of luxury homes include the Balearic Islands, Madrid, Catalonia, Malaga and Cadiz in Andalusia, as well as an emerging luxury real estate market in the province of Alicante, in the Valencian Community: Altea, Javea and Teulada-Moraira stand out with valuable properties exceeding four million euros.

The island of Mallorca in the Balearic Islands is the main enclave of luxury homes, followed by Ibiza, while in the Community of Madrid, luxury homes are concentrated in the capital and in the north of the region. In Catalonia, Barcelona and the Costa Brava are the epicentres, and in Andalusia, Marbella and Estepona lead the Costa del Sol.

The Spanish luxury market is attractive to foreign investors due to factors such as climate, security, and competitive prices compared to other international markets. Buyers of these properties are looking for exclusivity, maximum quality and sustainability, with KNX home automation installations for total control from anywhere and at any time.

In terms of valuation, luxury properties present professional challenges due to their uniqueness and the specificity of their market, differing considerably from the conventional real estate market.