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The larger market for prime homes
The luxury property is claiming an increasingly larger share of the real estate market globally and in Spain specifically. The county has around 2% of the world’s millionaires, who account for 3% of all resident adults.
This figure has steadily increased over the last two decades. For example, according to the latest Credit Suisse Wealth Report, Spain’s millionaires numbered just 0.5% of the population in 2000.
However, the next five years are set to show the most interesting figures. Credit Suisse’s predictions forecast that Spanish millionaire residents will rise by 57.3% by 2025.
More focus on sunny southern Spain
Top of many of the world’s wealthy’s wish lists are homes in pleasant climates and surroundings. On this count, Costa del Sol excels as increasing numbers of high-net-worth individuals have been discovered since the arrival of the pandemic.
Over the last two years, Costa del Sol has seen an exponential rise in the number of wealthy house hunters keen to make the most of the area’s high-quality lifestyle and fine property.
Change in lifestyle
The rise in the popularity of the Costa del Sol has brought with it shifts in lifestyle preferences. Wealthy investors want more spacious homes with large private outdoor spaces to fit into the new working from home paradigm.
In addition, sustainability has come to the forefront with high-end buyers looking for smart homes with environmentally friendly characteristics. New builds on the Costa del Sol tick all the new boxes, explaining in part the rise in demand for luxury real estate.
Rising prices in the sector
Recent research suggests that prime real estate in Spain fully recovered from the pandemic in 2021 when it saw increases in both sales and prices. As a result, analysts believe that the continued demand will keep pressure on house prices in Costa del Sol, although in moderation.
Predictions range from 6 to 8% increase in new builds and stand at around 2% for resale properties.
The biggest share of luxury real estate
The Costa del Sol takes the lion’s share of high-end homes in Spain. In autumn last year, 23% of the country’s listings priced at least €1 million were on the Costa del Sol.
When it comes to ultra-luxury homes (priced over €3 million), this share rises to 36.8%, well ahead of the Balearics, Barcelona and Madrid, other hot spots for premium property in Spain.
Secure investment
Property at the highest end of the market has shown its capacity to keep its value and remain the desired asset. As a result, luxury real estate on the Costa del Sol presents a solid case as a secure investment. As safe as houses, as the old adage goes.
At Realista, we believe that the current demand for prime properties will continue throughout this year, particularly as travel restrictions gradually disappear. As a result, we expect a busy market over the next three quarters as more wealthy investors focus on Costa del Sol.
If you’d like to join them, get in touch with our friendly team. We’ve been on the Costa del Sol for three decades and know more than a thing or two about the market and what’s available.
