The supply of luxury homes in Spain grows 150% in five years and reaches historic prices

In the period between 2019 and 2024, the luxury housing market in Spain has experienced notable growth. According to a joint report by Fotocasa and Infinitum, a luxury complex owned by Criteria (the investment arm of the La Caixa Foundation), the supply of properties with a value greater than 800,000 euros has increased by 150%. During this same time, average prices have increased by 28%, going from 1.56 million euros to almost reaching 2 million, marking historical highs.

A luxury market with its own dynamics

While the traditional sales and rental market faces price increases due to the gap between limited supply and growing demand – Spain builds only 100,000 homes annually compared to the creation of more than 250,000 new homes – the luxury segment follows another logic. In this niche, both supply and demand have grown, driving a general increase in prices.

María Matos, spokesperson for Fotocasa, explains this particularity: “The rapid increase in real estate prices has led to properties that previously cost 600,000 or 700,000 euros now being classified as luxury homes. However, the supply in this segment remains limited, with barely 50,000 units available, which represents around 5% of the market. Despite this limited supply, demand continues to increase, putting additional pressure on prices.

Factors behind the 28% increase in luxury prices

The 28% increase in luxury home prices in the last five years – compared to 18% in the traditional market – is attributed to shared factors such as difficulties in construction, the increase in the cost of materials and the lack of labor. of work. According to Matos, these tensions are aggravated by regional imbalances in supply and demand. Madrid, for example, faces strong buying pressure with a very limited supply, while in Malaga, where the largest luxury supply is concentrated, prices are the highest in the country.

Luxury moves to tourist areas

Data from Fotocasa show that Málaga leads the luxury market, concentrating more than 23% of homes worth more than 800,000 euros, with an average price of 2.6 million. They are followed by Alicante (19% of the offer and 1.6 million average price) and the Balearic Islands (13% of the offer and 2.3 million euros on average). This panorama reflects a significant change: while in 2019 Madrid and Barcelona led the market with 23% and 21% of the supply respectively, today they only represent 9% and 11%.

The buyer profile: mostly Spanish

Although the luxury market has a notable international presence, the Spanish lead the transactions, representing 45% of the operations. Among foreign buyers, the Belgians stand out (15%), followed by the Dutch, Swiss, Poles and Ukrainians (3% each). By age, those over 45 years of age concentrate 70% of the demand, while those under 35 barely represent 7%.

In short, the luxury market in Spain reflects a unique dynamic, marked by growing demand, rising prices and a shift in prominence towards coastal and tourist regions.