The ongoing housing price escalation is impacting the luxury real estate market as well. Properties priced above €800,000 have seen a significant increase in value, with average prices rising 28% since 2019. By May 2024, the average price for luxury homes had reached €1.99 million, according to The Luxury Housing Market in Spain 2024 report, prepared by Fotocasa and Infinitum, a high-end resort in Tarragona managed by Criteria Caixa’s real estate portfolio. Comparatively, general housing prices have increased by 24.3% during the same period, based on data from Spain’s National Institute of Statistics (INE).
The report, released this Thursday, also highlights a 150% increase in the availability of luxury properties over the past five years. María Matos, spokesperson for Fotocasa, attributes this growth primarily to the overall housing price surge. Properties valued at €600,000 or €700,000 just three or four years ago have now crossed the €800,000 threshold, the benchmark Fotocasa uses to define a luxury home.
Key Locations for Luxury Real Estate
Despite the growth in the market, luxury properties remain concentrated in a few key locations. Málaga leads with 23.2% of Spain’s luxury home listings, boasting an average price of €2.6 million. Alicante follows with 18.9% of the listings at an average of €1.6 million, while the Balearic Islands hold 12.7% of the market, averaging €2.3 million. Barcelona ranks fourth with 11.5% of listings and an average price of €1.6 million, and Madrid comes in fifth with 8.8% of the offerings, averaging €1.8 million.
Interestingly, Madrid held the top spot in 2019, followed by Barcelona, but their dominance has since diminished in terms of listings.
Demand Trends in Luxury Housing
While the distribution of listings has shifted, Madrid and Barcelona remain the strongest markets in terms of demand. Over the past five years, interest in luxury homes has surged by 97%. Madrid leads as the most sought-after province, attracting 36% of prospective buyers searching for homes above €800,000. Barcelona follows with 14.6%, Málaga with 11.6%, the Balearic Islands with 9%, and Alicante with 3.8%. This ranking has remained relatively stable since 2019, although regions like Bizkaia and Gipuzkoa no longer feature prominently.
Property Types and Buyer Preferences
Detached homes, or chalets, dominate the luxury housing market, representing 42% of inquiries and 62% of the properties listed. Their average price exceeds €2 million. Apartments, typically located in shared buildings, account for 13% of listings and 35% of buyer interest, with an average price of €1.5 million.
In addition to price, buyers of luxury homes often prioritize specific features. According to the report, the most requested amenities include private garages, swimming pools, and access to recreational facilities such as sports areas. These preferences highlight the importance of lifestyle enhancements in the luxury housing sector.
A Growing Market
The luxury real estate market in Spain has shown remarkable growth in recent years, driven by a combination of rising property values and increasing demand. While the focus remains on a few key regions, the market continues to expand, offering opportunities for buyers seeking premium properties and unique features.