Renovating properties – the key for the capital luxury sector in 2018

The luxury housing market is brilliant. According to data from Lucas Fox's latest market report, a real estate agency specialized in these kinds of properties, the highest point since the housing crisis is the sale of new buildings in Barcelona and Madrid. This new analysis shows that 50% of the total sales in both cities included these types of houses.  propertyfinder qatar

Moreover, with an average selling price of EUR 830,000, the total number of transactions the company was part of grew by 39 percent in 2017, 14 percent higher than in 2016 (when it was EUR 730,000).

Madrid's transactions have grown most, with interannual growth of 92 percent. Followed by Valencia, sales increased by 86 percent. Despite political uncertainty at the end of the year, in Barcelona the sale of properties grew by 24%.

"Official data indicates that the market has recovered from the 2008 crash, and the number of transactions in some areas is reaching levels similar to the previous crisis, but prices remain generally lower than those reached in 2007, offering attractive investments across Spain," says Rod Jamieson, Lucas Fox's Director of Commerce.

Land deficiency in capitals

The development of new buildings in big cities – in particular in Madrid and Barcelona – is scarce because of the lack of land. In order to meet that demand, other roads must therefore be taken, such as renovation, which is not happening in other areas, such as the coast of Spain. "We believe 2018 will be a decisive year for the construction of a new building on the Costa Brava," says Tom Maidment, Lucas Fox partner.

"In 2017 there was an annual growth in new construction promotions in the province of Girona of 25 percent, and we expect this figure to increase significantly in the next two years. Despite these increases in building and selling properties of this type, we are still far from the 2007 prices. The recovery of the Costa Brava market, as in other tourist areas, is one step behind the recovery in major cities, "He adds. He adds.

Through these forecasts and to satisfy the demands of the luxury sector in the major capitals, Lucas Fox just launched the development of 27 luxury homes - 22 apartments, 5 penthouses - that have been renovated in the exclusive Chamberí area, at number 19, General Martínez Campos street.

Work will be completed by the end of 2019 / Lucas Fox

The development will feature an outdoor heated pool, fitness center, terraces and parking facilities. The property ranges from 200 m2 to 420 m2 and the price starts at EUR 1,56 million, up to EUR 2,65m, and goes from EUR 2,150 sq ft to 4,520 sq ft. Construction will begin in March and the homes are ready by the end of 2019.

In Barcelona, Casa Burés and Apartamentos Girona meet demand for high-end residences in central locations and with the most attractive historical elements for international buyers.

Profile of a luxury home buyer in Spain

As regards the profile of luxury home buyers, 34 percent of Lucas Fox' customers and international customers make up 66 percent of Spanish citizens, which corresponds very much to 2016. In particular, the British represented 10% of the total, while the North Americans and the French represented 8%. Buyers from Scandinavia, the Middle East and Asia also have a large show.

Why do they buy? Why do they buy? Just over a third (34%) of buyers purchased one of those properties as their second home, while 28% purchased their main residence. The same percentage (28%) of customers purchased for investments compared to 22% in 2016. The acquisition of property as an investment in the Spanish market appears to be in fashion.