The decade of the 90’s brought with it much more than iconic music, incredibly viral TV shows and questionable fashion sense. This last part of the 20th century also brought with it two generations of people who are today succeeding in rethinking an industry as important as luxury real estate in Europe. With the emergence of Millennials and Centennials, generations characterized by a digital focus, hyper-connectivity and a search for quality of life, a new direction is being set in the acquisition of high-end properties.
Situation of the real estate market in Spain
In recent years, the luxury real estate market in Spain has experienced an unprecedented boom, driven in part by the arrival of international investors and the growing demand for exclusive properties. The supply of luxury homes has increased significantly, especially in sought-after destinations such as Malaga, Madrid and Barcelona. This growth has been reflected in an increase in the number of transactions, with a notable increase in the participation of foreign buyers. According to the latest analysis prepared by the consulting firm Colliers, “Insight Branded Residences 2023”, an exponential growth in the development of luxury units is expected in the next four years.
Currently, these exclusive properties are around 300 units distributed in five developments, mainly in the Canary Islands, Madrid and Barcelona. However, it is estimated that by the end of 2027, the number of units could rise to 1200, with a main focus on the Costa del Sol, a region that presents itself as an ideal environment for the development of this market.
In this context, the so-called “Millennial” generation has found an attractive market for real estate investment, so much so that the presence of these people born between 1982 and 1994 already represents 25% of luxury property purchases in Spain, and according to Idealista, it is estimated that together with the “Centennial” generation (born between 1996 and 2010), they will represent 60% of purchases by 2025. This is a trend that neither investors, nor developers, nor real estate companies can ignore, as we are about to see a change in the luxury property game in Europe.
What is the buyer profile of these generations?
With a quality of life and experience-oriented mindset, Millennials and Centenialls are looking for properties that offer a balance of comfort, modern design and cutting-edge technology. Their focus on sustainability and ethics also influences their purchasing decisions, opting for homes that reflect their personal values.
The ideal buyer representative of these generations is looking for a home that meets a number of key characteristics. First and foremost, they value the quality of construction and materials used, preferring new or recently renovated properties. Flexibility in design and the ability to customize are key, as they want to adapt the space to their individual needs and preferences. In addition, physical and technological connectivity is crucial, as they are looking for homes that allow them to be always connected and enjoy modern conveniences.
What about the location of investment properties?
As for the most desirable areas or cities for these generations to live in, Malaga, Madrid and Barcelona stand out. Malaga, with its Mediterranean climate and diverse real estate offerings, attracts both international investors and national buyers looking for second homes. Madrid, as a financial and cultural epicenter, offers a wide variety of luxury options, from exclusive neighborhoods such as Salamanca to high-end residential developments in La Finca. Barcelona, meanwhile, continues to be a magnet for young tech entrepreneurs and startup founders, who are looking for a cosmopolitan and vibrant lifestyle in Barcelona.
The future of the luxury real estate market in Spain looks set to be defined by the growing influence of Millennials and Centennials. With their focus on quality of life, technology and sustainability, they are transforming the way exclusive property is perceived and acquired. From Nolabwe will be attentive to this dynamic and exciting evolution of the market, ready to offer innovative solutions that meet the changing needs and preferences of these new protagonists.
