Luxury housing in Spain is going through the best of times. A report carried out by the consultancy firm Capgemini, shows that in 2017, Spanish people with high purchasing power have increased in number up to nearly 11% (exactly 10,9%) with regard to 2016. This means that in Spain in only one year, from 2016 to 2017, there has been an increase in 22.100 of more millionaires. When we observe the evolution since 2008, facts and figures are even more significant: in Spain, great fortunes have risen up to 76%. This relates directly to the good times that luxury housing in Spain is going through. According to the Capgemini report, people with high purchasing power invest money in property and in the Stock Exchange. It is no coincidence that the Spanish real estate market is booming. Some weeks ago, we wrote in this blog about the purchase of luxury property by very wealthy people. According to this report, the most exclusive real estate properties in Spain have more and more potential buyers.

PROPERTIES WHICH COST UP TO 12 MILLION

It is estimated that people with high purchasing power can invest up to 12 million euros in a single property. However, the average amount is around 900.000€. In Spain, the most demanded real estate areas are experiencing the greatest peak in the last decade. In Madrid, the prime areas are La Finca, El Viso, Barrio de Salamanca and Chamberí. Each type of buyer is attracted to a different kind of high level property. Some time ago, we wrote an article about wealthy Latin American people who have become the main growth drivers of exclusive property in Spain. In that article, we said that these buyers usually prefer property located in the centre of Madrid, so as to be near the cultural attractions and also close to all the services that the city offers. This is why they like the areas of Justicia, Chamberí or Barrio de Salamanca. As for the area of El Viso, the buyer is usually Spanish or European and normally looks for a large detached house with a garden and a recreational area with a swimming pool, and tennis and paddle courts so as to practise sport.

THREE DETERMINING FACTORS

Luxury housing in Spain has three main determining factors: on the one hand, there is a great demand and this has led to making the product very scarce, especially in the most sought-after areas. As a result of these two factors, the prices have risen. In addition, the number of potential buyers for this product has not decreased, and sales have continued to rise. According to the PRI (Prime Residential Index), facts and figures show that Madrid holds the 10th place in the world regarding the purchase of luxury housing. Undoubtedly, this is a sign which makes us aware of the importance of this real estate sector in Spain.