Categorized | International

Luxury Real Estate Market in Spain Excels While Average Prices Drop

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In what appears to be a growing worldwide trend, the prices of luxury properties in the residential real estate market increased in the last month whereas average prices declined by nearly eight percent.

Spain’s largest cities have experienced the greatest decline in average prices, as they fell nearly nine percent. The prices for non-luxury homes along the Mediterranean coast also experienced similar declines.

Not all properties along the Mediterranean coast, however, are struggling. The luxury housing market, particularly those homes right along the sea, are thriving with strong demand and rapidly increasing prices.

The increased demand in the luxury market along the Mediterranean Sea can be attributed to an increase in foreign investors in the country. While overall foreign investment still has not reached levels similar to that during Spain’s real estate peak, it has continued to increase every quarter during the current fiscal year.

Sea-front properties continue to garner significantly higher demand and prices than homes that are even just five to ten minutes away, as tourism and the luxury lifestyle continue to attract the world’s wealthiest investors. Prices of luxury properties, particularly along the coast are expected to continue to rise into the next quarter.

Little has been said as to the expectations of the property market away from the coast. However, a vast improvement, if any, is not expected due to the looming debt crisis in Europe, as well as the threats of an overall worldwide recession. Average prices have decreased throughout the year in Spain’s housing market, and will likely continue to do so in the foreseeable future.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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