Eurobrix.com: The European Real Estate Portal

Are European mansions still popular in Spain?

by Yuri Brixenmortar 18. October 2011 11:17

As Europe’s economic concerns keep growing and Spain’s property sales drop, it looks like the country’s main hope for real estate investment is the steady flow of British buyers looking for bargain holiday homes. As VAT stays at 50% on new build homes, the budget audience seems to be the future of the Spanish property market. Is there any room left for European mansions?

Actually, there is. A lot of room, to be precise.

Indeed, this month has seen one luxury estate agent report record sales in the third quarter of 2011. Lucas Fox International Properties sold 19.5 million Euros worth of luxury real estate, marking its most successful period in its six year history.

The record high figures reveal the demand that still exists from wealthy overseas investors looking for high quality homes within the familiar lifestyle of Spain, particular in towns such as Barcelona and regions like Costa Brava.

Director Alex Fox spoke to OPP: "There is a lot of negative press about the Spanish property market. However Spain continues to be one of the top destinations for high net worth property buyers.”

“We predict that the high level of demand from international buyers will continue to grow,” added Marketing Director Anthony Leaton.

It’s good news for the Spanish property market, which has seen prices and transactions fall in recent months. Last week, two of the most debt-ridden regions revealed efforts to sell a portfolio of government real estate worth $1.3 billion before the end of the year, in an attempt to balance out the country’s finance books.

With billions of dollars of debt outstanding, the demand for luxury homes may reassure Spanish investors. Indeed, as expensive homes continue to sell despite the country’s low property prices, European mansions may yet provide the answer to solving Spain’s growing deficit.

 

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