The Luxury Real Estate Market in Spain

One thing above all others is very clear in Spain amongst a plethora of other countries, that is that the real estate sector has suffered horrendously in the last couple of years. The market can be segmented though and some areas have responded better than others of course. The better areas were cushioned from the recession and the areas of individual luxury Spanish villas and luxury real estate in Spain have fared a lot better than the areas where there are an oversupply of similar properties aiming at the middle or lower ends of the Spanish property market.
In Spain the luxury real estate market is now looking reasonably healthy. Prices have certainly dropped but they were the first to stabilise as soon as the excess stock was absorbed. Many people who had overstretched themselves got into trouble as interest rates rose to levels they hadn't been before and others in that area were bankers, lawyers and other professionals etc... whose industries disappeared almost overnight and they were unable to pay the large mortgage repayments that came with the territory.
The now famous distressed sale market grew and virtually disappeared quite quickly as this excess was soaked up by those who had previously wanted to buy in the luxury areas but the price was slightly out of their range. As distressed sales appeared and were comparatively cheap they dragged the market down with them of course. Now they are largely gone the anchor on the market has gone too of course.
Not that I am suggesting price rises but with low interest rates in all of Europe, where many of the luxury property buyers come from, and the fact that those counties are slowly coming out of recession, many people now looking to buy in Spain at good prices. It is unlikely that in this particular sector at least there will be any further price falls. As there are limits on the number of luxury Spanish properties on sale the scarcity principle should come into play and maintain prices long and medium term.
So where are the luxury properties? Spain has many areas that are havens for the super rich, the obvious candidates are Marbella, Andratx in Mallorca, Catalunya, sprawling city centre pads in Madrid and Barcelona, the more exclusive golf resorts dotted around the country and the Canary Islands noted for their weather all year round are also popular in this field.
Valencia, where I am based, also has its luxury areas where the professionals, football players, and those with a lot of spare money have set up home. The areas of Monasterios and Alfinach near to Puzol nestle into the mountainside overlooking the Mediterranean while Campolivar has probably the largest agglomeration of ego homes in the area being just five minutes from the. Rocafort and Santa Barbara tend to be the favourites of the Politicial class and the area around the two golf courses at Betera and El Bosque near Chiva are packed with million Euro homes with beautiful views over green fairways and manicured lawns.

For more information on the properties available in these areas, where there is still an overhang of bargains available then click on the links in the author box below.