Luxury residential segment booms on the back of alternative financing
Luxury housing does not understand the crisis: more sales and soaring prices. The segment already represents 15% of the market in Autonomous Communities such as the Balearic Islands, with the majority of buyers coming from the European Union.
Sales transactions on this strip rose by 10% year-on-year in the first half of 2023, according to the Spanish Real Estate Market Report by 'Lucas Fox'. Ibiza and Madrid are, with Malaga, the most dynamic of the national geography: transactions grew by 50% year-on-year here. Furthermore, in areas such as Barcelona the increase reached 43%, while sales doubled on the Costa Brava. As for prices, in global terms, they grew by 41%.
These results reflect the confidence and strong purchasing power of buyers in the luxury segment of the market, who are less reliant on financing. Buyers in the luxury sector are also less sensitive to price increases than buyers in other segments and are driven more by confidence in their investments than by price.
Malaga is home to the flagship of the coastal luxury segment, Marbella, which concentrates the largest supply of luxury homes for sale with 4,416, closely followed by the Balearic Islands with 4,327 and Madrid, more distant, with 1,238.
From DEXTER, its Senior Risk Analyst, Rubén Miñarro assures that "Spain has an increasingly mature luxury market, developers and builders are aware of this and that is why they are turning more quickly every day, especially in the early stages of their projects, to alternative financing with private capital, which has already become an unstoppable trend," concludes Díaz.
Luxury residential segment booms on the back of alternative financing
Luxury housing does not understand the crisis: more sales and soaring prices. The segment already represents 15% of the market in Autonomous Communities such as the Balearic Islands, with the majority of buyers coming from the European Union.
Sales transactions in this segment rose by 10% annually in the first half of 2023, according to the 'Lucas Fox' Spanish Real Estate Market Report. Ibiza and Madrid are, with Malaga, the most dynamic of the national geography: transactions grew by 50% year-on-year here. Furthermore, in areas such as Barcelona the increase reached 43%, while sales doubled on the Costa Brava. As for prices, in global terms, they grew by 41%.
These results reflect the confidence and strong purchasing power of buyers in the luxury segment of the market, who are less reliant on financing. Buyers in the luxury sector are also less sensitive to price rises than buyers in other segments and are driven more by confidence in their investments than by price.
Malaga is home to the flagship of the coastal luxury segment, Marbella, which concentrates the largest supply of luxury homes for sale with 4,416, closely followed by the Balearic Islands with 4,327 and Madrid, more distant, with 1,238.
