This year 2021, in Spain, luxury housing grows again and consolidates itself, as one of the most appealing real estate products considered by investors. Little by little, the negative effects caused by the pandemic are being overcome. In addition, our economy shows signs of recovery, a fact that can be seen in our real estate market. Spanish people are, once again, investing in housing, therefore, property purchase and sales are growing month to month, and luxury housing has not remained on the sidelines of this growth. The facts and figures of high standing property in Spain show that there has been an increase of 20% in 2021 as regards luxury property investors in our country. This means that, even though we have still not overcome the health crisis, investors consider that luxury property is a product which is worth betting on. In our national territory, Madrid and Barcelona continue to be the two most demanded provinces in which to invest in luxury housing. Regarding the capital of Spain, Barrio de Salamanca and Chamberí are the most preferred areas for luxury real estate investors. However, we must not forget other favourite neighbourhoods such as La Moraleja or Pozuelo de Alarcón both located in the outskirts of Madrid. As for Barcelona, the most sought-after areas for luxury real estate investors are Pedralbes, Sarria Sant-Gervasi, Ensanche Derecho and Pueblo Nuevo. In the outskirts of Barcelona the most demanded areas are Sitges, Matadepera and San Vicenç de Montalt.

A SECTOR IN GREAT SHAPE

The growth of luxury housing has not taken experts on real estate by surprise. At the beginning of this year, we wrote an article in this blog saying that real estate investment was expected to increase in 2021. It was logical to imagine that if, in those days, housing deals grew in spite of the problems caused by COVID-19, then the luxury real estate sector would not fall behind as is happening in our country. We can say that the luxury real estate sector is in great shape and high standing property investors demand more and more housing in our country. According to the Colegio de Notarios de España, there is a very clarifying data which shows that in 2020 a decrease of around 14%, compared to 2019, in the sale of luxury housing took place. This is an interesting fact if we take into account that in those days we were in the middle of the coronavirus irruption. Nonetheless, it is a less severe drop than the one which happened in 2008 just after the burst of the real estate bubble. Those days luxury housing deals fell no less than 34%. Currently, we can state that in Spain luxury real estate has withstood the coronavirus.

FOREIGN INVESTORS AGAIN TAKE CENTRE-STAGE

In Spain, the health crisis brought about a change in the luxury housing buyer. In 2020, foreign high standing property investors lost prominence in favour of domestic buyers (it is estimated that in those days foreign demand for luxury housing dropped 25%), but in 2021 it is becoming important again. It is calculated that, nowadays, the demand of foreign investors for high standing property is 17% lower than the days previous to the coronavirus (2019), and this fact leads us to think that soon records may be equaled. For one reason or another, it is undeniable that luxury housing in Spain is going through good times. Let us see if these good sensations are materialized with new facts and figures in the forthcoming months.