The average price of luxury housing in Spain rose 6% in 2017, according to Barnes
The average price of luxury housing in Spain increased 6% year-on-year at the end of 2017, to an average of 6,600 euros per square meter, despite the paralyzing effect of the Catalan independence challenge in the region until mid-November, whose Impact will cease to be noticeable in a few months, according to the '2017 Barnes Report' on the luxury real estate market.
In large cities such as Madrid, Barcelona, Seville, Valencia or Alicante, as well as in regions with a large tourist influx such as the Andalusian Costa del Sol, the Valencian coast, the Catalan Costa Brava, the Balearic Islands and the Canary Islands, the increase in prices was above 12% year-on-year, with absolute values above 10,000 euros per square meter.
In this sense, the average time of sale of a luxury property during 2017 was 5.5 months nationwide (6 months in the second half of the year) and only 2 months in the areas with the highest tourist demand (2, 5 months in the second semester).
By nationalities, the French were the fastest buyers of luxury properties, with an average of 2.5 months and 4 visits to the home , followed by the British (3.5 months and 6 visits), the Belgians (4 months and 5 visits) and the Germans (6 months and 6 visits).
Meanwhile, Spaniards and Italians needed an average of 7 months and between 8 and 9 visits to make the final decision to purchase the property . The Chinese were once again what lengthened the home buying process the most, with an average period of 8.5 months and an average of 14 visits.
The founding partner of Barnes Spain, Emmanuel Virgoulay, stressed that the real estate sector has experienced a "historic year" in 2017, since "not only has the economic crisis been definitively left behind, but much-needed stability has been achieved in order to the market".
"The annual balance is very positive, especially due to the good start recorded during the first three quarters and the leading role of the first home", stressed Virgoulay, who pointed out that in the last quarter, despite the influence of the political conflict in Catalonia , the response of the sector was of "great capacity of reaction and altitude of sights".
In terms of financing, Spanish buyers of luxury homes required 42% financing to buy. The French needed the least financing (15-18%), followed by the British and Belgians (20-23%), while the Germans and Italians required more financing to close the real estate transaction (25-40%).
The impact of the crisis in Catalonia will end "in a few months"
Regarding the political conflict in Catalonia, Barnes points out that it had a “paralyzing effect” in terms of generating new operations during the period between October 1 and mid-November, with a drop in demand and the average price of luxury housing, especially in the city of Barcelona.
Despite the fact that there were operations in progress that were left on standby while the situation was clarified, Barnes notes that there was no 'domino effect' or an investment flight to Madrid, the Balearic Islands, the Valencian Community or other markets, since the rest of the country is "politically alien" to the Catalan question and the buyer profile that invests in other parts of Spain is different from that of Barcelona, being compatible and complementary markets.
"The political situation in Catalonia is temporary, so the effects of the conflict will cease to be felt in a few months when tranquility is restored and buyers and investors return to see Catalonia and Barcelona as they have always perceived it: one of the regions economically more prosperous in Europe with many tft cheat sheet opportunities, "said Virgoulay.
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