Madrid and Barcelona strengthen their weight within the luxury residential market on an international scale, according to the latest edition of the report "Savills Prime Residential World Cities Index," which studies the evolution of the main high-end housing markets in 30 major cities around the world, covering the ultra-luxury, luxury, and emerging markets within the 'prime' scope of each city.
In the aggregate of these cities, prices recorded an average increase of 0.6% in the first half of the year, in a scenario marked by geopolitical instability, economic slowdown, and an increasingly uneven advance among markets.
In this context, Madrid recorded an increase of 2.4% and Barcelona of 1.5%, which places both capitals clearly above the global average and confirms the strength of their high-end residential markets, according to Savills.
Resilience of the prime segment and international comparison
"While the pace of global growth has moderated compared to the more dynamic years of the cycle, the overall market behavior remains positive and the 'prime' residential segment continues to show resilience, supported by the scarcity of supply and the wealth strength of its buyers even in a more complex international environment," the consultancy detailed.
Despite recent increases, prices in Madrid and Barcelona remain below those of other established reference markets.
The average price of 'prime' housing according to the international Savills index stands at 11,700 euros per square meter in Madrid and 9,600 euros per square meter in Barcelona, far behind the 19,000 euros per square meter in Paris, the 18,200 euros per square meter in London, the 25,000 euros per square meter in New York, or the 26,300 euros per square meter in Geneva.
Prices on the rise and forecasts for the second half of the year
The director of new residential construction in Madrid at Savills, Yolanda Rueda, has pointed out that "Madrid continues to align its prime residential market with Europe."
"Considering only the 'high-end', the average prices are between 15,000 and 18,000 euros per square meter and in the coming months we foresee the incorporation of new projects in some of the main 'prime' areas of the capital, with prices around 25,000 euros per square meter," he pointed out, adding that there is a "clear evolution towards higher tickets, with a growing number of homes exceeding six million euros compared to previous years."
For his part, the director of residential Barcelona at Savills, Pablo Balea, indicated that in the Catalan capital, focusing on the most exclusive segment of the market, the average prices range between 10,000 and 12,000 euros per square meter, with highs of between 15,000 and 18,000 euros per square meter in unique new build promotions in locations like Paseo de Gracia or Turó Park."
"Looking ahead to the second half of the year, we expect sustained growth, as what is moderating is the volume of transactions, not the value; the buyer maintains their interest," Balea concluded.
In the chapter of forecasts, Madrid and Barcelona are included in the small group of cities for which Savills anticipates increases above 2% in the second half of the year, along with other markets like Lisbon (Portugal) and various Asian cities that lead the global evolution due to the limited supply of quality product against a robust national and international demand.
According to the consultancy, only Cape Town (South Africa) will register an advance above 4%, and it emphasizes that, compared to the greater synchronization observed in previous cycles, in the coming months the trajectory of the 'prime' market will be increasingly determined by local factors.