A survey by British real estate portal Rightmove reveals the current profile of the luxury property buyer: mostly male (62%), over 55 years of age (68%), still active (64%) and looking for a property to adopt a new lifestyle (49%).
The severe restrictions in the UK and Spain due to the coronavirus pandemic have almost completely paralyzed the luxury property market in Spain for British buyers, but the progressing pace of vaccinations in the UK and the expected resumption of flights to Spain in the coming months is projected to result in a boom of acquisitions in the first months of this normalization.
A survey conducted a few months ago in the UK by Rightmove, the UK’s largest real estate portal and collaborator of Spanish consulting firm Arum Group, reflected that the luxury property sector in Spain is simply in suspension and activity will quickly resume as the current restrictions on mobility between the UK and Spain are lifted. During the months of restriction and confinement, the study revealed, the demand for and interest in properties in various parts of Spain has held strong and even grown, auguring significant activity in the sector in the coming months.
Jesús Abellán, CEO of Arum Group, confirms that in recent months, “We have noted a substantial increase in online enquiries and virtual tours of luxury properties,” in the resorts managed by Arum in Spain, including Abama Resort, in Tenerife, and La Manga Club, in Murcia. Not being able to travel to the destination to make final acquisition decisions has suspended closing operations with the British market, but the level of activity, interest and exploration by potential buyers has been intense.
According to Rachel Beaton, Business Operations Manager at Rightmove, the most important factor in releasing this “pent-up demand” for Spanish luxury real estate from British buyers is the lifting of restrictions on mobility between the two countries. The pandemic, Beaton explains, completely suspended the market, with 72% of clients who are currently in market saying their property transaction had been paused or delayed as a direct result of the pandemic.
“The players in the Spanish-UK real estate market will be paying close attention in the coming months to the progress in the vaccination campaigns in both countries,” Jesús Abellán points out. This is corroborated by Rachel Beaton. In the United Kingdom, she says, “the forecasts are that by May the top 9 priority groups (people over 50 years of age) will have been vaccinated, and between summer and September the rest of the adult population of the country will be vaccinated.” The pace of Spain’s vaccination campaign will also heavily influence the resumption of operations and condition the current transport restrictions.
Rightmove survey: The profile of the British buyer in Spain
According to the data studied by Arum Group from the survey carried out by Rightmove, the British buyer of luxury properties in Spain is mostly male (62%), over 55 years of age (68%), leads an active lifestyle (64%); and is looking for a property that will allow him to adopt a new lifestyle (49%), retire (45%) or have a holiday home (44%). Significantly, 11% of respondents in the study stated that Brexit was the main factor in wanting to purchase a property.
Of all potential buyers, 48% were exclusively interested in properties in Spain, 31% in France, 18% in Portugal and 12% in Italy. The survey, carried out in November of 2020, demonstrates how the coronavirus pandemic stalled buyers’ progress in the market. Seventy-two percent of respondents said they had delayed or paused their research. This includes forty percent decided to suspend their search until the return to normalcy. Surprisingly, 6% accelerated their purchase plans.
Respondents were also asked how long they had been actively looking for property abroad. 41% began looking for a property post-Covid-19 and half planned to close their property purchases within 6 months of travel restrictions being eased.
The conclusion Rightmove draws from the survey is that the luxury real estate sector in Spain should be prepared when the travel restrictions are lifted, as interested buyers “will be looking to act quickly.” A significant number of potential buyers, moreover, are well positioned to do so, being “highly educated cash buyers that are unfettered by young children or location.”
