THE RISE OF THE LUXURY MARKET IN SPAIN ATTRACTS AMERICAN INVESTORS

The luxury residential market in Spain is experiencing a phase of great dynamism, with notable expansion despite high interest rates and political and economic fluctuations. This growth is largely due to foreign demand, with a significant increase in investment from Latin American, British, French, and German buyers. However, a new and growing group of investors has begun to set the trend: Americans, especially in Catalonia. The attraction of these buyers focuses on the climate, the leisure offer, the competitive prices and the favorable tax measures that Spain offers.

Pull factors for Americans

Americans are being attracted to Spain not only because of its climate and cultural offerings, but also because of improved air connections and housing prices, which are very competitive compared to those in their country of origin. According to Bruno Rabassa, CEO of Berkshire Hathaway HomeServices Spain, new direct air routes from cities such as San Francisco and Dallas to Barcelona have significantly facilitated access to Spain, increasing interest and investments in the luxury real estate market. This phenomenon has led to a 15% increase in the number of American buyers in 2023.

Spain as a life destination

Spain has established itself as one of the most desired destinations to live, according to InterNation's Expat City Ranking 2023, with cities such as Malaga, Alicante and Valencia leading the ranking. Madrid and Barcelona also stand out among the favorite destinations, especially for Americans and Latin Americans. The Spanish capital, in particular, has been compared to Miami for its growing popularity among luxury buyers, who value its cultural and gastronomic offerings, and the welcoming nature of its inhabitants.

Impact of the Golden Visa

The Golden Visa, which allows foreign investors to obtain residency in Spain, has been an incentive for property purchases, although its impact on the luxury market is relatively limited. According to Rabassa, less than 0.1% of all transactions in Spain since 2013 have been carried out through this visa. Despite government proposals to limit this program, its elimination is expected not to significantly disrupt the luxury real estate market, which remains a safe haven for foreign investors seeking security and quality of life.