The pandemic has driven Barcelona into the luxury real estate market. After a few months of sales paralysis due to confinement, the recovery is being faster than anyone could have predicted in the first months of last year.
The recovery has been produced partly by the sales that could not be closed last year and on the other hand by the capital saved during this period and with which they are rethinking improving their priorities. The market has recovered with few international buyers (they are 83% compared to before the pandemic), and that its return, when mobility restrictions are completely relaxed, will give an additional boost to the market.
In the first half of this year, sales have exceeded the levels of 2019, prior to the pandemic, in all luxury areas, both on the coast and in Madrid and Barcelona.
Despite Brexit, British buyers remained the most important group during the first quarter of the year, followed by the French. On the other hand, the markets that have suffered the most from the pandemic have been the Chinese, with a fall of 58%, and the Russian, with a decrease of 32%, since in these the purchases are more linked to obtaining the residence permit with the Golden Visa. The global drop in foreign demand has been 18%.
The Ciudad Condal occupies the fourth place with 11% of searches to buy luxury homes in Barcelona by foreigners and who have a budget of more than 1 million euros. Visits from the USA are the most frequent (14%), followed by Germany (9%), the United Kingdom (9%), France (9%) and the Netherlands (5%).
International interest in luxury homes in Spain
Many great fortunes around the planet have their eyes on the Spanish luxury market, one with homes of more than one million euros. Even so, there are some countries in which their fortunes have a special interest in Spanish luxury homes: they are mainly German, who accumulate 18% of searches for luxury real estate; British (11%), French (10%), Americans (9%) and Dutch (7%), according to a study published by idealista, analyzing the origin of searches for homes of more than one million euros.
International interest in luxury housing is mainly concentrated in 10 provinces, which account for 93% of visits to homes of more than one million euros that occur in Spain.
1st - The Balearic Islands is the favorite area for large non-Spanish patrimonies, since 29% of luxury home searches by foreigners are concentrated on the islands. The main stakeholders in luxury homes in the island province are Germans (36% of total searches from foreigners), British (11%), French (8%), Dutch (8%) and Swedes (5%).
2nd Malaga, which accounts for 16% of luxury searches by foreigners. The nationalities with the greatest interest in Malaga luxury are British and Swedish (12% in both cases), followed by Germans (9%), Dutch (8%) and Americans (7%).
3rd Madrid, with 15% of searches. Although the distribution in the capital is widely distributed, the US is the country from which the majority of visits to luxury homes in the province take place (18%), followed by the United Kingdom (9%), France ( 6%), Mexico (5%) and Portugal (5%).
4th Barcelona, with 11% of searches for luxury homes by foreigners for luxury homes (more than 1 million euros). Visits from the USA are the most frequent (14%), followed by Germany (9%), the United Kingdom (9%), France (9%) and the Netherlands (5%).
5th Alicante, which accumulates 8% of the luxury searches that occur in Spain by foreigners. The Dutch are the most active (15%), followed by Germans (14%), British (11%), French (10%) and Swedes (6%).
6th Girona, with 4% of all searches, where the French are the most interested (39%), followed by the Dutch (13%), Germans (10%), British (7%) and Americans (6%).
7th and 8th Canary provinces, which share 3% of international searches in each of them. In both, the nationality most interested in their luxury homes is German, with 26% in the case of Santa Cruz de Tenerife, and 24% in Las Palmas. It is followed by the British, with 11% in both island provinces; Italians, with 9% in both cases, and French, with 8% in both cases. Poles are the fifth most luxurious nationality in Santa Cruz de Tenerife (6%), while that position is for Swedes (6%) in Las Palmas.
9th Valencia, with 2%. The main international luxury searches in the province come from France (13%), the US (12%), the United Kingdom (11%), Germany (10%) and the Netherlands (8%).
10th Cádiz, with 2% of all luxury searches. The British are the most searching there (23%), followed by Germans (18%), Americans (10%), French (8%) and Dutch (6%).
Housing in Catalonia in September 2021 had an average rental price of € 10.91 / m2, up 6.79% compared to last year, it is the third Spanish region to increase the rental price the most in the third quarter of year: 2.90%
According to the quarterly rental price report, the typical apartment in Catalonia registered an average rental price of € 10.91 / m2 in September 2021, which represented a quarterly increase of 2.90%, the third highest in Spain . Compared to September 2020, the rise was 6.79%, the highest national rebound. Monthly, it grew 0.93%, the second highest in the country.
Catalonia was the third autonomous region with the most expensive monthly payment for tenants, behind Madrid (€ 12.42 / m²) and the Balearic Islands (€ 11.38 / m²). For its part, rental housing in Spain had an average price of € 9.81 / m2 in September 2021. This figure marked a monthly rise of 0.82% and a quarterly increase of 1.87%. Year-on-year it was down -1.38%.
The implementation of teleworking and the speed of vaccination has given light to the recovery of various sectors, including real estate. In the current context, it is expected that, by the end of 2021, a large part of the buyers of luxury homes in Barcelona will be large investment portfolios, executives and international businessmen. The Ciudad Condal will be located in Madrid as the favorite destination for international buyers.
Investment or second homes are the main preferences of international executives and entrepreneurs. In fact, the vast majority of these high-end buyers believe that they will spend more time during the year in their second home, or they will alternate between their first and second homes for many periods.
Although individual buyers often choose to enjoy a vacation home, the luxury real estate market goes further. The objective is to be able to attract buyers so that they can establish their first residence in Spain. To carry this out, the Golden Visa will also be granted to those investors seeking to promote or build their own home on previously purchased land.
In the first half of 2021, foreign buyers accounted for a third of purchases in the luxury real estate sector in Barcelona. However, both its profile, its origin, and that of the offer is quite heterogeneous. If we put the focus on European buyers, the interest falls on renovated second-hand homes, in historic buildings or with cataloged architectural elements. On the other hand, the North American, Asian or Latin American profile opts for new construction properties, with home automation, high security and a style similar to that of the large cities of their selected countries.
Regarding the location of the house, the districts of Sarria-Sant Gervasi and Les Corts-Pedralbes are the most sought-after in Barcelona city. Followed by areas of the metropolitan area such as Castelldefels, Gava Mar or Esplugues de Llobregat.
The demand indicators in the luxury sector are encouraging and predict an increase in the second half of the year. One of the essential factors for the return of foreign investment has been the implementation of telework in many countries.
The new work habits will cause an increase in demand for homes located in peripheral areas of large cities. The competitiveness of the price of the property combined with the weather and the Spanish cultural heritage have become elements of great investment attraction for large international portfolios.
KH Porperty Investors awarded Sanjose Constructora the execution works for the luxury residential it has built in a 20-storey building located on Paseo de Gracia 111 in Barcelona, at the intersection with Avenida Diagonal.
The new residential, which combines in its more than 13,000 m2 of surface, will have 34 luxury homes and will be managed by Mandarin Oriental, in a formula similar to that used by Four Seasons with the luxury apartments of the Canalejas Complex in Madrid.
The property will also have a parking area and large common areas, including its main lounge, green areas, gym, wellness center, business space, as well as a roof with a garden, swimming pool and unbeatable views over the city of Barcelona. .
The building will have 20 floors and some thirty apartments with one to four rooms, with an area that ranges between 100 and 600 m2 and the price per m2 ranges between 16,000 euros and 20,000 euros.
Super Luxury Penthouses
The project houses four full-floor penthouses, but only one is the true jewel in the crown. It is the Grand Penthouse, on the top floor, of almost 600 m2 built, with a double height ceiling and whose terrace surrounds a large part of the property.
The ability of the architect Carlos Ferreter to create buildings that capture the essence of his surroundings have made his studio, OAB, a world-renowned firm and the ideal choice to design the Mandarin Oriental Residences, Barcelona.
Muza Lab Interior design
Designers Nathan Hutchins and Inge Moore are co-founders of the London studio Muza Lab, specializing in unique projects worldwide. Taking inspiration from the building's enclave and its unique connection with the city of Barcelona, they have created an interior concept that revolves around the framing of light and views. Pure, refined and exquisite spaces that undoubtedly need to make Las Residencias one of the most exclusive residential spaces in the world.
The most prestigious residences in the world. From New York to London, Boston to Bangkok, Mandarin Oriental offers a truly unique lifestyle.
KKH Real Estate Investors
With more than 20 years of experience in real estate development in Spain, the group specializes in the construction of luxury hotels and high-level residences.
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