The pandemic punished most economic sectors in 2020, and the luxury home sales market was no exception. However, in 2021 demand strongly reactivated, and real estate agencies like Lucas Fox achieved growth of up to 60%. This surge is due to the fact that many operations that were pending in 2020 were finally closed last year, and also to the greater interest shown by international investors in buying properties in Spain.
"The rethinking of priorities by international investors has been key; following the pandemic, they have focused on Spain as the perfect territory to invest due to its climate, quality of life, and high stock of exclusive homes," explains Alexander Vaughan, managing partner of Lucas Fox and co-founder alongside Stijn Teeuwen.
The high-end real estate agency based in Barcelona closed 2021 with sales of 25.2 million euros, a 60% increase. This figure is the result of commissions derived from the intermediation of real estate purchase and sale operations valued at a total of 625 million euros. The average price of each home marketed was 944,000 euros. 63% of buyers were foreigners and 37% were national clients. The acquisition of a second home (34%) or a primary residence (34%) were the main reasons for purchase, followed by investment (22%).
These transactions have been executed through a network of own offices that has grown to 30 branches thanks to new openings in municipalities with a high concentration of luxury homes, such as Platja d'Aro, Alp (La Cerdanya), Sant Just Desvern, Seville, Pozuelo de Alarcón-Boadilla, Las Rozas, and Jávea. In total, the firm now has 196 employees.
According to Lucas Fox, the record turnover achieved in 2021 "is a reflection of the resilience that the prime housing segment usually shows in the face of crises." "Investment in residential luxury represents a refuge against the volatility presented by other markets in these cycles," notes the agency.
Demand from foreign buyers and investors fell by 25% during the toughest moment of the health crisis, but in 2021, purchases by foreigners recovered to 83% of pre-pandemic levels. The biggest buyers were British citizens, followed by Dutch, French, and Americans, states Vaughan. In the case of Madrid, the director of Lucas Fox also highlights the "strong investment interest" shown by Latin American buyers.
The founding partner is optimistic about 2022 and expects to recover pre-crisis levels of foreign demand. In addition, Lucas Fox will boost its international growth by brokering homes in Southern Europe and also plans to focus its efforts on growing in Northern Spain.
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