Three Reports Outline the Resilience of the Spanish Luxury Real Estate Market

Lucas Fox International Properties today release a formal analysis of the Spanish luxury real estate for the first two quarters of 2011.

Projections and data feature the regions of Barcelona, Costa Brava and Ibiza.

Key insights from the reports include:

• The lack of property finance available and changes to mortgage taxation have led to an overall slowdown in Spanish property sales in the first half of 2011, the luxury property market has shown more resilience than other sectors of the market.
• International buyers are acquiring luxury properties in Barcelona, the Costa Brava and Ibiza without mortgage financing.
• There is a growth in property investment in Spain from Russian, Dutch, and Swiss buyers and investors.
• Tourism growth in Barcelona, Costa Brava and Ibiza in 2011 has had a positive effect on demand for short-term rental properties.

Based on the analysis, Lucas Fox Directors offer forecasts for the remainder of 2011:

Barcelona Property Market
Alex Vaughan, Director of Lucas Fox said:

“While the first half of the 2011 has seen further drops on key housing indicators in Barcelona, the luxury end of the market has held steady in sales prices and seen some increases in rental price for exclusive properties located in the centre of Barcelona. The lack of quality luxury apartments and houses should mean that prices in this segment of the market will remain stable.

We predict that for the immediate future buyers will be able to secure Barcelona properties at competitive prices. Given the current economic conditions and lack of finance available to local buyers, international clients should be willing to hold on to their properties for longer as it will be several years before the next growth cycle. ”

Costa Brava Property Market

Tom Maidment, Director of Lucas Fox Costa Brava said:

“The high demand, for high end luxury properties in the Costa Brava region make these properties more price resilient than those in other parts of Spain.  Demand for luxury properties continues apace, mainly driven by international clients from the Eurozone and a high level of demand for sea front villas from buyers from Russia and ex Soviet states.”

Ibiza Property Market

Alex Vaughan, Director of Lucas Fox said:

“We expect a very positive second half of 2011 with a large amount of transactions in the €1m plus segment of the market… We believe that the luxury property market on Ibiza has great potential and that there will be a return to annual capital growth next year.”

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Notes to Editors:

Company: Founded in 2005, Lucas Fox specialises in offering quality luxury properties, a professional approach and a high level of service. The company has offices in Barcelona, the Costa Brava and Ibiza.

Data: Collated from leading Spanish real estate portals, national  and governmental statistics, and luxury buyers. Data in the reports is specific to Barcelona, Costa Brava and Ibiza.

Alex Vaughan
Director,
Lucas Fox
Tel: +34 933 562 989
Email: info@lucasfox.com

Anthony Leaton
Marketing Director,
Lucas Fox
Tel: +34 933 562 989
Email: info@lucasfox.com

Press photos can be provided by request: info@lucasfox.com

Reports.

The reports are available for download at no cost at:

Barcelona Market Report
Costa Brava Market Report
Ibiza  Market Report