Demand for luxury homes in Spain is enjoying a remarkable surge, buoyed by a diversified supply and sustained interest from foreign buyers.
Jesús Abellán, CEO of Arum Group, shares his confident outlook for 2024, foreseeing a surge in sales during the latter half of the year. “After a cautious 2023 marked by economic and political uncertainties, we’re witnessing a resurgence in activity, with double-digit increases in purchases expected,” Abellán revealed to real estate portal Idealista.
Data from Grupo Tecnitasa corroborates this optimism. Since 2018, transactions involving properties valued between 1.5 and 5 million euros have multiplied sixfold. For properties exceeding €5 million, the rise is even more pronounced, with transactions witnessing a ninefold increase.
Aside from the superior quality of these properties, characterized by exquisite architecture and premium construction materials, their strategic locations further enhance their appeal. Spain’s political and economic stability, excellent transport and telecommunicationss connectivity to the rest of Europe, the year-round pleasant climate, and strong infrastructure make it a prime investment destination, particularly for buyers from Northern Europe.
According to Tecnitasa, the average price per square meter of luxury properties increased from €6,700 in 2021 to €8,110 in 2023. However, despite anticipating a slower growth trajectory for 2024, Abellán remains cautiously optimistic.
Regardless of macroeconomic challenges such as rising interest rates, the luxury real estate sector remains resilient. Sales prices continue to climb, with average prices in the Ultra High-End sector ranging between €10,000 and €18,000 per square meter, depending on the location.
Beyond Madrid y Barcelona
Spain is surpassed by only the United States, the United Kingdom and Australia for luxury real estate investments and comes in at a steady 4th. While Madrid and Barcelona remain perennial favourites among buyers, up-and-coming destinations like Murcia, the Balearic and the Canary Islands, particularly Tenerife, are gaining traction. These regions offer a diverse array of residential complexes, villas, and apartments, often integrated into high-end resort facilities.
Arum Group’s projects in La Manga Club, Murcia, and Abama Resort Tenerife exemplify this diversification.
La Manga Club Properties is leading the way in modern developments with projects like Las Orquídeas, featuring 42 apartments, and Las Acacias, offering 29 plots for the construction of independent luxury villas. These developments cater to discerning buyers seeking luxury living in breathtaking surroundings.
Abellán notes the high demand for modern luxury homes in Murcia, located between the Mar Menor and the Mediterranean. High demand driven by limited supply bodes well for price stability and is a favourable factor for both buyers and sellers. Similarly, Abama Resort Tenerife is also experiencing high demand, fuelled by clients seeking serene retreats with the potential for holiday rentals.
At Abama Resort Tenerife, Arum Group is seeing more people interested in buying luxury homes. These buyers want a peaceful place to retreat to for part of the year and have the option to rent out the property for holidays. Tenerife, the Canary Island where the resort is located, is currently thriving. Many construction projects are underway at present and could lead to competition among developers to attract buyers.
In light of these trends, the concepts of enhancing resort amenities and tailoring services to individual preferences emerges as a winning strategy for the development of luxury homes in Spain. By offering exclusive experiences and value-added propositions, the property developer can attract a diverse clientele and ensure the success of luxury real estate projects.
