Sure! Here’s the translation into American English:
—
The luxury real estate market in Spain has shown remarkable resilience in the first half of 2025, primarily driven by growing international demand. This phenomenon is evident in key locations such as Madrid and the Costa del Sol, where supply has remained scarce, contributing to rising prices for high-end properties. According to data from The Avenue Select Real Estate, a 5% increase in prices is estimated compared to the previous year, set against a backdrop of declining interest rates and a sustained recovery in investment in luxury residential assets.
Locations such as Marbella, Benahavís, and Pozuelo de Alarcón continue to attract both local and foreign buyers. In Madrid, the city is positioning itself as a strategic destination for residential investment in Europe. Juan Luis Sáez, Chief Production Officer at The Avenue, notes that transactions in this segment are becoming increasingly sophisticated, focusing on international clients who value aspects such as legal security, quality of life, and heritage value. Neighborhoods like Salamanca and Chamberí are experiencing demand that significantly exceeds the available supply.
Despite the recent elimination of the ‘Golden Visa’ program in April, the participation of foreign buyers remains strong, with a surprising 92% of luxury transactions conducted by non-residents. This interest primarily comes from Latin America, the United States, and Western Europe, and is starting to include investors from Central and Eastern Asia.
In the Costa del Sol, projects linked to international brands and featuring high construction standards have bolstered their appeal, with average prices exceeding three million euros in locations such as Benahavís and Casares. In the metropolitan area of Madrid, municipalities like Boadilla del Monte and Majadahonda stand out for their strength and attractiveness to high-net-worth buyers. Alberto J. Bermejo, Corporate Development Director at The Avenue, clarifies that the profile of national buyers has evolved, now seeking contemporary products that offer energy efficiency and technological features.
The shift in the type of demanded assets is reflected in a growing preference for luxury apartments, such as penthouses and high-floor units that provide terraces and modern design, in contrast to traditional villas. These types of properties now represent more than 60% of the prime offering in the capital.
Looking ahead to the second half of the year, the outlook is positive. Analysts anticipate a continuation of moderate growth in the sector, driven by the limited supply of new properties and a favorable macroeconomic context, along with competitive prices compared to other European capital cities. All of this suggests that the luxury real estate market in Spain will continue to solidify.
Referrer: MiMub in Spanish
