The purchase of luxury homes will grow by 40% throughout 2024.

In general, it will be a great real estate year, with a mortgage war that allows lower incomes to re-enter the market.

The foreign buyer has a strong demand for the purchase of luxury homes.

The leg of luxury housing is one of the many support points that the real estate market can count on to have a very active 2024. To such an extent it may be so good that it may be at 2022 levels, the year of greatest dynamism since the outbreak of the 2007 crisis.

This was stated by Gonzalo Bernardos, professor of economics and director of the Real Estate Master's Degree at the University of Barcelona. Although the low supply of new housing (project sale) leads to something inevitable: "We are going to make records for used home sales." Bernardos estimates that sales will be around 650,000 properties at the end of the year, figures driven by a strong "mortgage war."

Most experts in the real estate market take it for granted that this war will occur, after the rise in interest rates last year greatly reduced the signing of mortgages. In the words of Bernardos, "to earn more than last year, banks are going to have to increase the base" of business, which is nothing more than the number of mortgages managed by the entities. This will have a direct impact on prices: if with the real estate downturn, properties did not stop becoming more expensive, this year when demand will be greater, they will do so and at greater speed.

Bernardos estimates a price increase of between 5% and 7% and an increase in the number of operations of 15%.

The downturn in the real estate market was short-lived, although it never occurred in the luxury segment. Even last year, when the market suffered a small dip in its dynamism, the purchase of homes exceeding one million euros remained in top shape. Well, throughout 2024 this will continue, to the point that the number of operations in this segment will grow by 40%. This is the forecast made by the leading luxury real estate brokers.

There is an unstoppable phenomenon that explains this furore for luxury housing in Spain. The advent of the foreign buyer, who has begun to make a strong impact in recent years but will continue to grow in prominence in the market.

What Spanish real estate offers this buyer is an unbeatable combination: a privileged climate, non-existent in many of the countries of origin of these buyers, and housing prices that are also much lower than those of other countries. Although buyers from other European countries such as Germany have traditionally had the greatest role, the range of places of origin is now opening like never before, causing the arrival of nationals from America, both from the north and the south, and from Asia.

At the forefront of this strong increase in luxury sales there are five main areas.

Malaga, Mallorca, Madrid, Barcelona, and the Costa Blanca north area.

They are the hot spots of the luxury segment. It is no coincidence, therefore, the large presence of foreign buyers in all of them. 65% of all luxury sales in Malaga are foreigners, more than 90% in Palma de Mallorca, 23% in Madrid capital, 50% in Barcelona, and more than 90% in specific areas of the Costa Blanca north (Altea, Calpe, Javea and Moraira).

Also, very related to the purchase and sale of luxury properties is the growth. Malaga and Balearic (Mallorca and Ibiza) are in front of the increase in demand of luxury properties and the lack of new construction could take second-hand luxury sales to all-time highs during 2024.