Yesterday, we reported on recent news announcements that have reinforced the luxury property market in Spain predictions made by Lucas Fox Directors in the mid-year market reports on Barcelona real estate, along with forecasts made in reports for Ibiza luxury property, and luxury real estate in Costa Brava.
In the third quarter of 2011, Lucas Fox has completed transactions totalling 19.5 million Euros, the strongest quarter ever in the agency’s history.
According to Lucas Fox, the agency’s ability to encourage growth in the luxury property market in Spain has been due to a focus on understanding what buyers want.
”Simply, we match the right buyer, to the right property. We do not waste the buyer or seller’s time proposing properties that they would not be interested in”, explains Alex Vaughan, Lucas Fox Director.
It is a process that is evident in how the agency has described their clients in recent media interviews and in the company’s midyear market reports. Buyers from Russia, Sweden, Switzerland and Scandinavia have been understood as different markets, each with their own particular property interests.
Russian buyers – with a particular interest in specific areas within Maresme, Barcelona and Costa Brava – have been looking for hotel and other singular investments, wanting to invest without the weight of mortgages at home, and with ready access to cashflow.
In contrast, Swiss and Scandinavian investors have shown interest in other areas of Northern Spain and come from a new generation of financial professionals and entrepreneurs looking to invest their new wealth in properties that match their lifestyle demands and that are sure to hold their value over time.
Vaughan explains why Lucas Fox is facilitating a lion’s share of investment in the luxury property market in Spain, that Bank of Spain documented as growing by 32.8% in the first six months of this year: “We employ staff that know a buyer’s native market and negotiation process. They translate and compare these similarities and differences to the international buyer. This simplifies, and clarifies, the whole transaction.”
While other agencies were circumspect about the market at midyear, Anthony Leaton – Lucas Fox’s Marketing Director – oversaw the release of Ibiza, Costa Brava, and Barcelona real estate market reports that gave potential investors some clarity about the value of the luxury property market in Spain. “In the present market climate, you complete transactions at this level by analyzing and realizing the client’s expectations. Our team is consistently changing and adopting new processes, technology and marketing-communications to facilitate this, ” Leaton explained.
In continued response to client requests, Lucas Fox International Properties is now looking to establish still more services that match the changing property investment landscape. Like the agency’s establishment this year of new services facilitating access to quality country and sporting estates, Lucas Fox now plans to provide a range of other products and opportunities that match the changing demands from around the globe for quality opportunities in the luxury property market in Spain.
Keep up to date with the latest Lucas Fox analysis of the luxury property market in Spain by subscribing to the Lucas Fox blog.
This is the first of a 2-part special report on the changing nature of the global and Spanish luxury property market.
Recent property reports from the Bank of Spain and leading market analysts around the globe show a new wave of investors are taking advantage of Spain’s availability of high quality properties in some of the country’s best locations. 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.
Coming tomorrow in part 2: How the luxury property market growth occurred
5 Current Web Conversations About Sitges Property
1. “The Outlook Is Sunny” (Sitges Weather)
2. “Gorgeous” (Gay Sitges)
Urbanist Richard Florida has researched the most economically viable cities and found that they all have a high level of creativity. When he dug a little further, he found that all of the cities with a high level of creativity had a large, open gay population that was well accepted by everyone in the community. Sitges is well-recognised as being a gay beachside paradise, with ample gay bars and venues in the pebbled village streets, a gay beach, and a large gay resident population. Gay Sitges creates a welcoming and accepting atmosphere for everyone who visits or resides there.
3. “Scouting Property from a Penthouse” (Apartments in Sitges)
Sitges is the St Tropez of Spain. The beaches, the charm of the village centre, the proximity to Barcelona and the international airport, and the nearby Penedes wine region make it at a centre of paradise. Lucas Fox currently has a number of apartments in Sitges available for short or long-term rental, or for sale. A penthouse apartment was recently sold by Lucas Fox for €1,800,000. Many investors stay at one of our short term rental properties while they assess the market. Contact Lucas Fox for a private discussion and tour of Sitges property.
4. “Is your short in Super 8?” (Sitges Film Festival)
A signature event on the world calendar for the film industry and aficionados, the Sitges Film Festival focuses on fantasy, horror and science fiction films. Tweets are flying fast from film makers letting their followers know when they have sent off their competition entry or final footage for premiere screening. Budding actors and directors are checking through LinkedIn for which Hollywood contacts are planning to attend, and everyone else is Facebook liking the Sitges Film Festival fan page. It is going to be another big year for the festival, and the program hasn’t even been released yet.
5. “Try the Xato, It’s Very Good” (Sitges Restaurants)
Xato is a traditional Sitges dish and it is proudly served in many of the better Sitges restaurants.
Xato ingredients include:
- Escarole salad
- Aubergine (eggplant)
- Black olives.
Xato sauce is made of chillies, toasted almonds, garlic, olive oil, salt, vinegar and hot peppers.
Dine on a plate of xato while savouring a black wine from the Penedes.
(This post used wondergraphs and meoweather to present Sitges weather data, gay.cat on flickr to present gay Sitges, Lucas Fox property to show apartments in Sitges, the Sitges Film Festival site, and wikipedia to explain the ingredients ingredients Sitges restaurants use for xato.)