The luxury housing market in Spain will remain strong in the short term despite global uncertainty, thanks to robust foreign demand.
This is the scenario outlined by Bruno Rabassa, CEO of Berkshire Hathaway HomeServices in Spain, during the SIMA real estate fair, held in late May in Madrid.
In his address, Rabassa argued that despite the complex global economic, geopolitical, and commercial context, “currencies remain stable. The euro is still performing well against the dollar, which are the two most important currencies in the world, and European interest rates are much more favorable and stable than those elsewhere. Moreover, Spanish banks are not only able but also willing and eager to finance international clients — especially those buying luxury homes, as they have greater financial strength.”
He also highlighted: “We have a country that, seen from abroad, is spectacular. We live in an absolutely incomparable country, and what we sell is not property. We sell lifestyle, and our lifestyle is unmatched,” creating a favorable environment for international buyers, including the premium segment. Other contributing factors include Spain’s cultural offerings and safety.
Regarding the typical luxury homebuyer, the CEO says the profile is highly varied and depends both on the type of property (second homes or retirement residences) and its location.
“In all our offices across Spain — located on the Costa Blanca, Costa del Sol, the Balearic Islands, Barcelona, and Madrid — we find very diverse profiles. On the Costa Blanca, for example, Dutch, Belgian, and French buyers are predominant; in Madrid, there are many Latin American and North American buyers. Americans are coming in droves because they’re facing high taxes back home, and they realize that here, with the same money, they can do so much more,” he explains.
Rabassa illustrates this with the tax difference: for a luxury villa in Spain, the annual property tax (IBI) might be around €5,000, whereas for a similar property in California it could reach up to $350,000 per year.
Buyers also vary in age — from active professionals working remotely to retirees seeking to enjoy life in Spain.
Regarding financing, despite having the means to buy outright, “for tax reasons, and above all because many have their money invested at a higher return than a mortgage costs, they choose to take out a mortgage.”
Rabassa believes Spain is enjoying “good times” thanks to international tourism, which acts as a gateway to the property market. “Two years ago, we overtook France as the world’s most visited country, we did it again last year, and this year we’ll surely repeat it. That’s very important because people who come and get to know us want to stay,” he says. He predicts that many homes — including luxury properties — will continue to be sold to foreigners, acting as a stimulus for the economy.
Source: Idealista
Ana P. Alarcos
30 June 2025, 8:10