The luxury real estate market in Spain is currently experiencing a peak, especially due to the increasing interest from younger generations. Millennials, born between 1981 and 1995, already represent 25% of all transactions in luxury homes valued at over three million euros. This is revealed in the first report on the luxury real estate market in Spain by Hiscox, an insurance company specializing in solutions for affluent individuals.
The presence of these generations in the market is expected to continue growing. Together with the Centennials (born between 1996 and 2010), they are projected to represent over 60% of buyers in the luxury market by 2025. Moreover, their spending is expected to increase three times faster than other generations.
These younger generations are digitally savvy, highly connected, and place significant value on social and ethical aspects. Their primary professions lie in healthcare, science, research, and technology. Quality of life is paramount to them. Therefore, they prefer newly built or recently renovated top-quality homes. Flexibility in design, proximity to nature, and good physical and technological connectivity are essential factors for them when choosing luxury properties.
Currently, the purchase of luxury homes is still mainly led by Generation X, born between 1961 and 1980, mainly due to their financial capacity.
International buyers play a significant role in the Spanish luxury property market. Although the number of millionaires in Spain exceeded 1,130,000 in 2022, the majority of buyers of homes valued at over three million euros are foreign investors. They are seeking a secure investment or a second home to reside in for a few months each year. Especially investors from the European Union, notably from Germany, the United Kingdom, and France, are active in this market. In recent years, American and investors from the Middle East have also shown interest in the Spanish luxury property market.
Málaga is one of the most beloved destinations for British investors. Not only does the province of Málaga host 34% of all luxury homes in Spain, but a staggering 90% of buyers of this type of property in this area are foreigners. Particularly, British buyers have a strong preference for this destination. Despite Brexit, they continue to represent the majority of foreign buyers in this province, accounting for 20% of transactions. French, Swedish, Belgian, and increasingly German, Austrian, and Dutch investors are also becoming more active. In the La Zagaleta area, a significant sub-market in Spain, besides British investors, investors from Arab countries stand out, as well as Germans, Scandinavians, and Russians.
At the national level, residents of Madrid are the main buyers of luxury homes in Málaga, especially in Marbella. Since the pandemic and with the option of flexible working, many have chosen to settle here permanently. Regarding age, the typical buyer of homes valued at more than three million euros in Málaga falls in the age group between 40 and 55 years.
In Madrid, which houses 10% of all luxury homes of more than 3 million euros, it is challenging to pinpoint one specific profile of the buyer. Nevertheless, the primary investor in this segment comes from Latin America.
The profile and nationality of the buyer vary significantly depending on the part of the city under consideration. In the Salamanca and Almagro districts, investors from Mexico and Venezuela are particularly active, looking to settle in the most exclusive shopping areas of the capital. In Retiro, on the other hand, it is mainly national buyers looking for a home for personal use. In El Viso, there are many European diplomats, and in La Finca, there are mainly ‘new rich,’ both nationally and internationally, including media personalities such as athletes or famous artists. In La Moraleja, the buyer is predominantly national, with many successful business professionals, as well as television personalities, famous athletes, and renowned artists.
Regarding age, the typical buyer of homes valued at more than 3 million euros in Madrid falls in the age group between 40 and 50 years.”
The Evolution of the Luxury Real Estate Market in 2023 on the Costa Blanca: An Overview
Costa Blanca, the coastal area of the province of Alicante in Spain, is known for its beautiful beaches, sunny climate, and luxurious lifestyle. In 2023, the real estate market on the Costa Blanca is undergoing a remarkable evolution, especially in the luxury real estate segment. Let’s take a look at the trends and developments that characterize this market this year.
- Increasing International Interest The Costa Blanca has always had appeal for foreign investors and buyers. In 2023, however, this interest has further increased. People from around the world see the Costa Blanca as an ideal destination for a second home or investment. The beautiful Mediterranean climate, breathtaking coastline, and attractive lifestyle play a significant role.
- Focus on Sustainability and Modern Amenities Luxury real estate developers on the Costa Blanca are increasingly focusing on sustainability and modern amenities. Buyers prioritize energy efficiency, environmentally friendly building materials, and smart home technology. Sustainability is considered a sign of quality and responsibility in the increasingly conscious real estate landscape.
- Technological Innovation in Luxury Homes Technological advancement has also made its way into the luxury real estate market on the Costa Blanca. Smart homes with advanced security systems, integrated home automation, and energy-efficient solutions are in demand. Buyers want homes that are not only beautiful but also equipped with the latest technologies for a comfortable and efficient lifestyle.
- Flexibility and Adaptability Flexibility is high on the list for luxury homebuyers in 2023. The ability to customize the layout of the house to the resident’s needs, use spaces for multiple functions, and even the possibility of future expansion are crucial considerations. Buyers want homes that grow with their lifestyle and needs.
- Growth of Exclusive Communities and Amenities Exclusive communities with private amenities such as private beaches, luxury spas, golf courses, and private marinas are gaining popularity. Buyers are looking for homes that offer a complete lifestyle, where they can enjoy privacy and luxury within the community.
The luxury real estate market on the Costa Blanca is evolving rapidly, offering buyers more and more choices. Whether it’s for an investment, a second home, or a permanent residence, the Costa Blanca remains a top destination for those seeking luxury and comfort in beautiful Spain.
