The unstoppable interest of Americans in luxury housing in Spain is growing.

PUBLISHED ON

Julio 05, 2024

CATEGORY

Real Estate

The luxury residential market in Spain is going through a period of great dynamism, one could even say that it is in the midst of a golden age. Unaffected by high interest rates or political and economic turbulence, this segment continues to grow, largely driven by foreign buyers. Latin Americans (with a strong presence in Madrid), the British, French and Germans are the traditional investors in the most exclusive domestic segment, but they have recently been joined by the Americans, whose presence is expanding rapidly throughout Spain, especially in Catalonia.

Until now, the Americans did not represent a very significant market share, but they are now setting their sights on Spain, attracted by the climate, the country's leisure offer, house prices, tax measures and air connections. It is a practically unstoppable trend that is backed by new developments in terms of transport and accessibility to our country, with new flight connections and more and better frequencies.

The favourable fiscal measures, together with very competitive prices compared to their country of origin and the lifestyle on offer, represent an excellent opportunity for this client who is looking for security and quality of life as their motto.

As for air connections, since May it has been possible to take a direct flight from San Francisco to Barcelona, and more recently, since June, Dallas has also had a direct connection to Barcelona. In addition, and by extension, Malaga and Mallorca also benefit from these connections with the United States. All of this has a direct impact on the sales and investment prospects of these clients.

The luxury market is very exclusive and is not affected by changes that do have an effect on the rest of the sector. This makes it a safe haven for investors and buyers, mainly foreigners, who see luxury real estate as an opportunity for personal and professional growth.

Spain's attractiveness

Several Spanish cities have been chosen as the best cities in the world to live in, according to the latest Expat City Ranking 2023 report, prepared by InterNation. Malaga, Alicante and Valencia top the list, although other locations such as Madrid (6th position) or Barcelona (13th position) stand out as some of the most desirable destinations for Americans and Latin Americans to settle in.

There is a euphoria about buying property in the capital. This is making Madrid the Miami of Europe. What is most repeated about Madrid is the number of museums, the gastronomy, the climate and the character of the Spanish people.

As far as the Golden Visa is concerned, and despite the government's plans to limit it, experts say that, although it is a beneficial incentive to stimulate sales, it is not a decisive element when it comes to buying a home. Less than 15,000 buyers have opted for the Golden Visa - since it was established in 2013 - which represents only 0.1% of all transactions in Spain. If this visa is removed, it is not expected to alter the luxury market.