Two years have passed since the pandemic turned our daily lives upside down and slowed down most of the global economy. As people adapted to the new situation, Spain’s real estate market proved to be one of the most resilient sectors of the economy, with an impressive recovery after a sudden drop in the number of transactions in 2020. In particular, this applies to the luxury real estate sector. You can get more details about which markets were in demand at https://spain-real.estate/.
The situation in the luxury housing market
By the end of 2021, the average annual price of high-end housing in Spain increased by 3.7% and reached 4,000 per 1 m2, which indicates the evolution of prices and the demand for these properties. Most of the luxury housing areas in Spain are located in coastal areas and municipalities.
Where was the highest price increase?
The highest price growth in Spain was in the Balearic Islands and Malaga. Among them, the largest increase in the cost for 2 years was in Genoa – here prices jumped by 41.1% to 5,881 euros per 1 m² of living space, which was the best record in the last two years. Among the 10 districts with the highest increase in prices for luxury real estate compared to the period before and after the pandemic, in half of the cases the price that owners pay for their homes exceeded this baseline value.
In the Montemayor-Marbella club district in Benahavis, prices increased by 39.2% to 4,312 per 1 m² of living space, compared to its neighbor La Zagaleta El Madronyal, where the growth was only 3.7%, you can understand how high the jump was. Cala Viñas in Calvia ranks third in the list of areas with the highest price growth – here the increase in the cost of housing was 37.7% to 4957 euros per 1 m².
Although the world-famous Marbella may not have areas in the top three, it is in this city that there are most areas with a significant increase in real estate prices. Its neighborhoods of Las Brisas (30.1%), Los Monteros (30%), and Los Naranjos (24.7%) are one of the 10 largest housing markets with post-pandemic growth.
In addition to them, the list includes three Balearic districts:
• Es Camp de Mar — 29.8%;
• Ibiza Sant Josep — 27.2%;
• Paseo-Maritimo — 29.3%.
Prospects of the Spanish residential real estate market in 2022
Experts of most large real estate agencies operating in the Spanish housing market are optimistic about 2022 and expect to return to the “pre-pandemic” level. And, based on this situation, there are several good reasons for optimistic forecasts.
First of all, this concerns the growth in the number of purchase and sale transactions, which should exceed 550,000. This may be affected by a moderate rise in housing prices in Spain (on average – no more than 5% year-on-year), so they will remain the most affordable in the entire European Union.
The improvement of the sanitary and epidemiological situation and the opening of borders should also have a positive impact on the recovery of the market. During the pandemic, remote home buying in Spain became widespread, and the development of modern digital technologies will help improve this experience.
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