The sale of luxury homes will skyrocket in 2024
Real estate agencies specialized in the high-end housing segment have reported an impressive growth of 43% in luxury property transactions last year 2023, consolidating themselves as the epicenter of the real estate market in 2024. This trend, which had already experienced a increase of 175% in 2023 compared to the last three years, reflects the growing preference for this exclusive segment. Currently, around 26% of new housing constructions are aimed at this market, a proportion that shows an increasing trend in the coming years. Demand is mainly concentrated in Barcelona and Madrid, representing 78%, with Andalusia and Levante emerging as particularly attractive regions for international investors.
Luxury property management experts anticipate growth will continue throughout 2024, pointing to significant increases in key areas, such as 47% in Barcelona, 50% in Ibiza, and 55% in Madrid, as well as a notable increase in sales on the Costa Brava compared to the previous year. In terms of prices, the report reveals a 41% increase in the average price of luxury homes and a 54% increase in the total value of these transactions.
In the first half of last year, approximately 13,300 luxury homes, with a price equal to or greater than 2.5 million euros, were available on the Spanish market, representing 2% of the total supply of 650,000 properties.
The sale of luxury homes in Spain is concentrated in 9 key provinces, which cover 97% of the market. Marbella leads as the epicenter, followed by the Balearic Islands, Madrid and Barcelona. This segment represents 15% of the local market in the Balearic Islands, 9% in Malaga, 3% in the capital, 2% in Barcelona and less than 1% in the rest of the Spanish provinces.
The profile of luxury home buyers in Spain is diverse and international. Citizens of the European Union, the United Kingdom, North and South America, and Asia are the main interested parties in this offer. In 2024, continued growth in demand is anticipated, especially from international investors, consolidating itself as a key factor in the luxury real estate market.
The year 2023 marked a historic milestone for transactions in the luxury housing market, with record turnover and growth figures. Real estate agents expect 2024 to maintain this positive trend, emphasizing that their main target audience is foreign buyers. In the second quarter of 2024, the proportion of foreign buyers reached a maximum of 24,000 sales, generating a year-on-year increase of 76%. This phenomenon highlights the growing influence of international investors in the Spanish luxury real estate market