Luxury Property Market Update: Where Are Spain’s Luxury Homes and Who is Buying Them?

The luxury property market in Spain is booming, with foreign buyers being drawn back to the country in their droves after a year bereft by lockdown and crisis.

Here’s everything you need to know about the state of the luxury property market in Spain right now, from where luxury homes are the most popular to who’s buying them, and everything else that’s happening in the Spanish property market this week:

Finding Luxury Properties

If you’re thinking of investing in a luxury property in Spain then look to the Balearic Islands or to Malaga. These are currently the two most popular places for foreigners to buy luxury homes in Spain right now. This information has been taken from a study published by the Idealista website, and is based on search data for properties that cost over one million euros.

The most popular destination was the Balearic Islands, which covers the islands of Mallorca, Menorca, Ibiza and Formentera, which saw 29% of the property searches for homes that cost one million euros or more. The second most popular search destination, with 16% of all searches, was Malaga, thanks in part to its excellent reputation, convenient transport links, and large ex pat community. In third place was Madrid, which saw 15% of all the searches for luxury properties.

Who is Buying Luxury properties?

The nationalities most interested in purchasing luxury properties in Spain varies by location, but it is fair to say that Germans, Britons, and the French are the nationalities most interested in investing in high-end property in Spain. 18% of searches for properties over 1 million euros were made by Germans, whilst 11% of searches were made by Britons, and the French came in third place, representing 10 percent of all searches. Fourth and fifth place were taken by Americans (9%) and Dutch (7%). For properties in Malaga, the nationalities most interested in buying property here are British and Swedish.

The Cost of Home Renovations in Spain

This week it has been revealed that, if you buy a property in need of work, the cost of home renovations is most expensive in the Basque province in Alava than they are in anywhere else in Spain. It has been forecast that a major home renovation here would cost approximately €35,000. This seems to be a consistent theme for Basque province, with the second most expensive location in Spain also in the province, in Guipuzcoa. The Balearic Islands and Navarra come in third and fourth place, and the province of Pontevedra secured fifth place on the list.

Ever Wanted to Live in a Cave?

It’s certainly a niche requirement, but if you’ve ever wanted to live in a cave then you’re not alone! There has been a huge rise in interest in cave properties, and the town of Guadix near Granada (which is home to 6000 cave homes, the greatest number in any town in Europe) is particularly in demand right now. As demand has increased, so too have prices, but there are still some cave home bargains to be had. If you’re hoping to secure a cave home you should be prepared to be consistent and persistent with your search. 

Introducing the Bank of Houses

Depopulation is negatively affecting many communities in rural Spain, but one town in Valencia has created a novel way to combat this. Their project is to create a bank of rental homes, using the city council into an intermediary between owners and potential tenants. This should attract new families and opportunities to the town of Vistabella, and stimulate supply and demand. According to Mayor of Vistabella, Jordi Alcon, the objective of the Compromís bank of houses is to create a registry of empty houses. “We have many houses but no offers to rent or buy,” he said. The bank will “put the owners of empty and unused houses in contact with people interested in renting a home in Vistabella.”

Are you thinking of taking the plunge and moving to Spain? There’s plenty of wonderful reasons to make this beautiful country your home! Why not let our local property experts help you with your property search: get in touch today. We’re perfectly placed to help you turn your dreams of Spanish homeownership into a reality.