The European property market has shown clear signs of recovery so far this year; with the increase in house prices being the main trend. In this sense, searches for villas and condominiums in Europe have increased exponentially, with Spain being one of the most sought after destinations.
Demand is active, supply is tight, and mortgage costs remain low. That is why the demand for luxury homes in Spain continues to rise, and the news about the real estate boom continues. In short, the consolidated real estate sector has been one of the main engines of economic recovery in Spain. In this context, the luxury market looks with good forecasts and spends this 2022 with optimism.
Growth of the luxury housing market in 2022
With stock market earnings booming, mortgage rates locked in, pent-up demand and renewed consumer confidence, the luxury housing market is experiencing a busy season.
Working from home and remote training allowed people to enjoy the benefits of a resort lifestyle. In fact, it is estimated that the second home market will see a large number of buyers willing to buy luxury homes even in the off-season.
Luxury housing: a safe investment
Considering that the stock markets are in a time of many fluctuations, many investors decided to invest in the safest assets. But what are the alternatives?
For one thing, keeping money in a bank account is not a good option. According to data from the National Institute of Statistics, inflation in July was 10.8%. So, in this case, the purchasing power goes down if the money is not profitable. In addition, banks charge their customers 0.5% of savings when the amount exceeds 500,000 euros. On the other hand, in this context, luxury residences add to their appeal by their safe haven quality. Which means it's a good long-term investment. In fact, this is the reason for the increase in demand.
High-end housing movements in the coming months
When looking for homes in the Spanish luxury market, around 41% of buyers are looking for properties above 2.5 million euros, while the majority are looking for luxury flats; that is, less than 2.5 million.
For its part, the demand for virtual tours for the purchase of luxury homes is increasing, since the journey is easier, especially for international buyers, who wish to buy homes without having to visit Spain. In this sense, unlike the classic home purchase destinations for foreigners, such as the islands or the Mediterranean regions, the cities of Madrid and Marbella currently lead the first-tier global market.
Luxury houses in Orihuela Costa
This trend is especially notable in Orihuela Costa, where some of the most expensive houses on the market are being bought by wealthy owners who smell an opportunity to invest their money in a property that will protect them from further economic turmoil.
The luxury home market in Orihuela Costa has proven to be resilient to the pandemic, with sales volume remaining stable throughout 2022. Although sellers continue to see some price reductions on their properties, they tend to be modest. , and buyers remain willing to pay close to the asking price for luxury homes in this area. And the reason is that Orihuela Costa is a city that is located on the Costa del Sol. It has a favorable climate to live all year round, and easy access to various services such as shopping centers, golf courses and international airports.
The area is also home to many celebrities and other wealthy people. With so many amenities available, it's no wonder that Marbella was one of the first places in Spain to see property prices rise over the past decade.
Luxury houses in Benidorm
As has already been seen, the luxury markets in Spain are booming. In fact, according to a new report from international consultancy firm Knight Frank, it has been revealed that Benidorm is now Europe's fastest growing city in terms of high-end property sales.
Benidorm is consolidating its position as one of the preferred destinations for the ultra-rich, and luxury housing rates are expected to increase by 6% in 2022. On average, the largest supply of luxury homes in Benidorm stands out in residences of 105.5 square meters for one million dollars.
Trends in the luxury real estate market
Beyond space and location, investors focus on the features and condition of the property. The closing activity corresponds to second-hand homes that have been renovated to the buyer's liking, or that are homes with high quality materials in elements such as windows, floors, kitchen and bathroom.
In general, homes are usually equipped with the latest technologies in home automation, which facilitate automatic and efficient management, and provide security and comfort. Furthermore, sustainability and efficiency will continue to be increasingly important criteria, but will not have a significant impact on the final price of a property.
Similarly, the most important green trends in the luxury residential area are the use of renewable energies, the strategic direction of the property and the integration of artificial intelligence in the operation of the home.
In short, experts believe that quality real estate has a great future ahead of it. In fact, high-end real estate is still the best answer to price inflation. In addition, it is the most profitable investment in the world because its happy owners will enjoy it with their families for a long time.