For almost two years now, the pandemic has affected the lives and economy of the world. Amongst these struggles, the real estate sector has bounced back with a bang, more so the Spanish housing market. The real estate sector, in 2020, had seen a sudden drop in transactions. But the recovery rates are giving a ray of hope.
Similarly, the luxury sector in the Spanish housing market has made a solid recovery too. Most importantly, in the areas of coasts and main capitals, the prices have been sustained or increased even. As such neighborhoods are the most connected with luxury housing, this proves to be good news for Spain’s economy.
Where is Luxury Housing’s Growth the Most?
Malaga and the Balearic Islands have shown the greatest increase in prices for luxury housing markets. Whereas Palma’s Genova neighborhood is the cherry on top with an increase of 41% in prices, approximating to 5,881 euros/m2. It had already exceeded the 4,000 euros/m2 score, which is a significant dividing line for luxury real estate.
The rates have gone further up in the post-pandemic season. This can be seen in the top 10 areas with the most increased rates in luxury housing.
In Montemayor-Marbella Club in Malaga town of Benahavis, prices have gone up by 39.2% to 4,312 euros/m2. When compared with its neighbor La Zagaleta-El Madroñal, where there was just a rise of 3.7%, the jump seems to be impressive.
Additionally, Cala Vinyes in Calvia comes in the top 3 areas with the highest price increases. The rates there have seen a rise by 37.7% to 4,957 euros/m2.
Although Marbella did not have any neighborhoods listed in the top three, it is the city with many neighborhoods witnessing large rises in property rates. Las Brisas (30.1%), Los Naranjos (24.7%), and Los Monteros (30%) are all neighborhoods in the top 10 housing markets with increased rates post-pandemic.
There are three Balearic areas that are added to the list alongside the aforementioned areas. They are as follows.
- Es Camp de Mar (2.8%) from the municipality of Andratx
- Sant Josep’s Ibizan village (27.2%) in Sant Josep de sa Talaia
- Paseo Maritimo of Balearic capital (29.3%)
Lastly, the Barri Vell district of Girona (29.9%) concludes the ‘top 10 largest increases in the luxury housing markets’ list.
Fallen Prices of Some Famous Areas
The owners’ asking rates for their houses have gone down by 13.7% in Lleida’s Naut Aran. They remain below the 4,000 euros/m2 score. Diagonal Mar I el Front Maritim del Poblenou (–12.5%) and La Nova Esquerra de l’Eixample (–12.7%) are Barcelona’s neighborhoods. Both these neighborhoods saw a fall in prices as compared to 2019. Yet, the former remains the priciest neighborhood in Barcelona with 6,202 euros/m2.
Es Cubells in the municipality of Sant Josep de sa Talaia in Ibiza had a rate drop by 12.4% from 2019. But it was also the most expensive property in Spain and, surprisingly, still remains so, with 8,641 euros/m2 being its rate. Another expensive area is the Miraconcha district of San Sebastian. Its rate, too, dropped by 10.6% in comparison to last two years’ rate, which was 7,243 euros/m2.
Some Priciest Neighborhoods of Spain
After Es Cubells in Ibiza comes the neighborhood of Recoletos in Madrid. It reaches 8,500 euros/m2, with an increase of 1.5% when compared to two years before. Next comes the island of Formentera. It has a unit cost of 7,930 euros/m2 after an increase of 6.8%, making it third on the list. This brings it closer to the select cluster of ‘eight thousands’.
Then stands Jeronimos in Madrid, with 7,148 euros/m2, followed by Port d’Andratx from the Balearic Islands, with its 7,115 euros/m2. The rest of the places in the top 10 list of areas for the luxury market in Spain are as follows.
- The Area Romantica from San Sebastian (6,930 euros/m2)
- Castellana from Madrid (6,909 euros/m2)
- Balearic Archipelago, Santa Gertrudis (6,764 euros/m2) from Santa Eulalia del Rio’s Ibizan municipality
- Costa d’En Blanes (6,619 euros/m2) in Calvia (Mallorca)