The national bank reported this week that foreign property investment has grown by almost 33% this year, while media analysts have pointed to how Spain is sharing in the global luxury property market growth in 2011.
It is part of a resilience at the luxury end of the property market that, according to Spanish newspaper El Mundo, has seen 10% increases in exclusive property prices around the globe: from Sydney to Singapore, Mumbai to Maresme. Here at the Lucas Fox blog, we recently noted that, looking at luxury real estate in Costa Brava, the more exclusive end of the market has been growing all year, with second quarter prices jumping substantially over first quarter prices for 4 and 5 bedroom luxury properties.
Much of this growth in demand is coming from international investors. The Bank of Spain’s data released this week showed that there has been a 32.8% growth in foreign property investment in Spain this year, with the second quarter even stronger than the first 3 months of the year. Investment from April to June was 16.1% greater than the strong first 3 months of 2011.
Speaking to El Mundo earlier this week, Lucas Fox Director Alex Vaughan said: “We are experiencing high growth in demand for high-end homes and luxury properties on the coast. Most are foreign clients seeking homes in the Maresme, Sitges, Costa Brava and Ibiza, especially Swiss, Scandinavian and Russian buyers.”
Based on an analysis of the luxury property market and from listening intently to their clients and potential investors, Lucas Fox Directors had boldly predicted that the second half of the year would consolidate a trend of growth at the luxury end of the market. It was a somewhat controversial stance, as other property analysts were speaking of the Spanish housing market as if it was one common beast, and at the time cautioning that further price drops were to be expected as housing held by Spanish banks was released onto the market.
Now, as the 3rd quarter of 2011 draws to a close – and only 2 and a half months after Lucas Fox Directors published their predictions – further proof of the company’s astute forecasting has come to light. For Lucas Fox International Properties, the third quarter of 2011 has been the strongest ever in the agency’s history, with 19.5 million Euros transacted between July and September this year.