Nationally, we are faced with the revaluation of property in the luxury sector. In the case of Madrid with a price increase of 6%, the third most attractive city for investors luxury home (2015 data), after Berlin and Dublin.
This revaluation is favoured by business dynamics, reductions in unemployment rates, concentration of total foreign investment and encourages in the hotel business, says Paloma Pérez Bravo, director of the Metropolitan Market Center (MMC) for Press World.
If we study the demand for luxury homes in our capital, we find press titles such as “A study says that Madrid is the 18th city in the world preferred by investors to purchase a luxury home” – Five Days (June 2015), or “The luxury housing in Madrid gets a boost: more expensive and sold in less time” – The Confidential (November 2015). Trending areas are Salamanca, Chamberí, Jeronimos and Justicia, highlighting the latter two. The upper middle class and foreigners with high purchasing power looking for well located and high quality housing.
Interior of a luxury penthouse, Madrid. Sales Presidence.
Studies of the first half of 2015 indicate that the number of sales increased by 45%, while rented properties went up by 60% – The World (July 2015). Spanish destinations with more demand for luxury homes are: Mallorca, Ibiza, Marbella, Madrid or Barcelona.
Therefore, we wonder what the reasons for the increase in this type of housing are. The real estate market of high class properties was also affected by the market crisis of 2008-2013, the main reason was loss of buyer confidence, who could not make the purchase, but postponed the acquisition decision until the sector stabilizes. Since 2014 the lost confidence recovers and market situation improves.
Main demand in domestic area:
- Balearic Islands. Main attraction for German, British and Scandinavian interested in properties in premium areas. Mallorca has registered a price increase of 10% -15%.
- Madrid, Barcelona and Valencia. In large cities and surrounding areas, the profile of the buyer is quite varied, ranging from national families interested in a change of residence to foreigners willing to make major investments or looking for work relocation.
- Coastal and mountain areas. They also have great demand in the Mediterranean coastal areas such as the Costa Blanca, the Catalan coast and the Cantabrian coast.
Internationally, London obtains the title of world’s most expensive city, office rental prices went up for the third consecutive year, followed by Honk Kong and New York.
The UK experiences a price increase of 25% in luxury homes, mainly due to the limited availability of property in the market.
In conclusion, we continue the process of market recovery. There is less overall demand for property, but the customer who wants to purchase new property is willing to pay a higher price.
Villa sea front, Mallorca. Mallorca-Sothebysrealty sale.
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