The luxury real estate market is experiencing moments of recovery after the slowdown caused by the COVID pandemic to transactions, as in the rest of the housing market in Spain. However, their prices have been maintained or increased in most of the neighborhoods and districts of the main capitals and coastal areas.
Using data from the latest Idealista price report, in which the average house price in Spain increased 3.7% year-on-year in October, we analyze the expectations of luxury home owners in those markets that have exceeded the € 4,000/m², and its comparison with the same in 2019, in the prepandemic period.
With these prices, more than 160 luxury housing markets appear in Spain, divided between districts and neighborhoods of different provincial capitals and a large majority of areas of coastal municipalities, known for their homes of more than one million euros.
The areas where luxury housing has risen the most are the Balearic Islands and Malaga. Among them, the growth that the Genova neighborhood of Palma has experienced in these two years stands out, with an increase in prices of 41.1%, reaching €5,881/m² at the end of October. Two years ago, it already exceeded the dividing line of € 4,000/m².
In the Montemayor-Marbella Club area in the Malaga town of Benahavís, prices have risen by 39.2% to €4,312/m². On the other hand, La Zagaleta-El Madroñal, where one of the most famous luxury developments in Europe is located, has had an increase of 37.7%, reaching € 4,957/m².
Although it is not among the top positions, Marbella is the city that appears the most among the main climbs. The neighborhoods that are among the 10 largest post-pandemic increases are Las Brisas (30.1%), Los Monteros (30%) and Los Naranjos (24.7%).
Along with them, there are three areas of the Balearic Islands that are added to the list as Es Camp de Mar (29.8%) in the municipality of Andratx; the Ibizan town of Sant Josep (27.2%) in Sant Josep de sa Talaia; and the Paseo Marítimo neighborhood of the Balearic capital, with an increase of 29.3%.
It completes the 10 largest increases among luxury housing areas, the Barri Vell district in Girona (29.9%).
On the contrary, there have also been price drops in these “luxury” areas such as Naut Aran (Lleida), where the expectations of the owners have fallen by 13.7% and remain outside that limit of € 4,000/m².
There are two neighborhoods in Barcelona that have also fallen compared to the prices seen in October 2019, such as Nova Esquerra de l’Eixample (-12.7%) and Diagonal Mar i el Front Marítim del Poblenou (-12.5 %), but the latter remains the most expensive neighborhood in Barcelona (€ 6,202/m²).
It should be noted that two of the five most expensive areas in Spain have seen prices fall by double digits. The area of Es Cubells in the municipality of Sant Josep de sa Talaia in Ibiza is the most expensive in Spain, € 8,641/m², and it continues to be, although it has dropped by 12.4% compared to 2019. Another outstanding area is the neighborhood from Miraconcha de San Sebastián, where it has dropped 10.6% compared to two years ago to stay at € 7,243/m².
Some of the most expensive districts of Madrid have also suffered falls in their prices, such as Sol (-11.1%), Gaztambide (-7.8%) and Trafalgar (-7.3%).
The most expensive luxury neighborhoods in Spain
As we have already mentioned, the area of Es Cubells, in Ibiza, occupies the first place and continues to be the most expensive in Spain after its decline with € 8,641/m² in October 2021. Two years ago it registered € 9,864/m².
In second place is the Recoletas neighborhood of Madrid, which reaches € 8,500/m² after an increase of 1.5% compared to two years ago.
In third place is the island of Formentera, which groups its entire real estate market due to its small size, and has a unit price of € 7,930/m², after rising 6.8%.
Behind them is the Jerónimos neighborhood in Madrid, with € 7,148 / m², and Port d’Andratx, in the Balearic Islands, with € 7,115/m².
Two other neighborhoods: the Romantic Area of San Sebastián (€ 6,930/m²) and Castellana in Madrid (€ 6,909/m²), together with two areas of the Balearic archipelago such as Santa Gertrudis (€ 6,764 / m²), in the Ibizan municipality of Santa Eulalia del Río; and the area of Costa d’En Blanes (€ 6,619/m²), in Calvià (Mallorca) complete the ranking of the 10 areas with the highest increase in Spain in the growth of the luxury market.