Spanish luxury market rallies as Russians buy in
Spain’s luxury residential market is showing some resilience as Eastern European and non-mortgage buyers surge into the market, according to new research.
New reports from Lucas Fox International Properties show that the average prices in the areas remain way above the national average.
And as finance becomes less scarce the luxury market has shown more strength than others.
Russian buyers are particularly active in Barcelona according to marketing director Anthony Leaton.
“Most interestingly we have recorded a rise of 300% with Russian clients in the two last quarters,” he said. As an agency, we have seen a 230% in qualified enquiries from Russian property investors and buyers.”
“With a high level of enquiries and interest from other emerging markets and our traditional client base the first half of 2011 has been anything but bleak.”
The Lucas Fox Barcelona report also notes a strong growth in the demand for property By Swiss and Dutch nationals, closely correlating with the rise in tourism numbers from the countries.
In Costa Blanca “the main international groups of clients interested in…property are from the UK, northern Europe, Russia and the USA,” the report says. It also adds that the large number of Russian households with a high level of cash assets and minimal borrowings saw a 30% surge in demand for overseas properties, with particular interest in Costa Blanca.
“Demand for luxury properties continues apace, mainly driven by international clients from the Eurozone and a high level of demand for sea-front villas from buyers from Russia and former Soviet states,” said director of Lucas Fox Costa Brava Tom Maidment.
Ibiza has noticed an increase in cash-buyers from overseas, with key markets for luxury property being “the UK, Netherlands, France, Italy, Switzerland and the Middle East, with many of these clients buying without financing,” according to Lucas Fox’s Ibiza report.
“So far 2011 has seen high net worth international clients for luxury Ibiza villas for sale. The decreasing popularity of destinations such as Sant Tropez has definitely been a positive in the Ibiza market,” said Alex Vaughan, director of Lucas Fox.