With increasingly shorter winters and longer and more scorching summers, coastal towns and cities of the Cantabrian Sea, both in Cantabria and Asturias, have been concentrating a growing real estate interest for several years.
Trends 2025 in premium real estate: diversification in the face of growing demand and land shortage
Prices are not slowing down, and neither is the imagination in this sector: the lack of land means that buyers are looking to other areas on the premium periphery of large cities, which also allow them more square meters. And, for their part, developers and investors continue to develop movements aimed at what is known as flexiliving, with solutions designed for different stages of life.
La calle de Almagro, en Madrid, una de las más señoriales de por el otro lado castizo barrio de Chamberí. Una mezcla única que encandila a nacionales y extranjeros.
It is February, still a time of forecasts for the new year, especially in such a turbulent political and macroeconomic environment, and with the real estate market at record highs. Although data may vary somewhat from one consulting firm to another, the truth is that all of them agree that investment in this sector will maintain its growth path in 2025, around 15%. And focusing on the living segment, the estimated growth will be 30%. In the premium residential sector in Spain, and despite the sustained growth of international investment in recent years, the fact is that the majority of buyers are still nationals (around 60%) and it is expected to increase, as the latest government measures are aimed at curbing demand by non-resident foreigners, although for the moment they have not materialized. “The residential market for sale and purchase is solid thanks to the rapid decline in interest rates, the good pulse of the labor market and higher-than-expected population growth. Demand has grown by 6.5% in year-on-year terms, with 350,000 homes sold, favored, in part, by the impact of foreign sales,” they say in the latest Living report for December 2024 presented by CBRE.
Prices will continue to rise, around 5% due to the main problem on which all studies also agree: the lack of supply to satiate an unstoppable demand. Since 2015, prices have risen by 47% and in some autonomous communities such as Madrid, Catalonia or the Balearic Islands around 60%, according to data from the Housing Index of the National Statistics Institute (INE).
Foreign buyers have very clear ideas
We already know the reasons why Madrid has become a place of international confidence: legal and civil security; excellent communications and quality of life; good climate and a high level of cultural and health services. And the price per square meter, another incentive, because in spite of these incessant rises, we must not forget that Madrid is still a very attractive city in this sense; it is worth the comparison: with 1 million dollars in Madrid a foreigner could buy 100 square meters in a good central area; while in London or Paris he would not reach 50 square meters, to give an example.
The international buyer knows that he is buying in a good place and that the supply is scarce, so the decision time is very short: “The international client is especially clear, they are aware of the scarcity of product on the market, which drives them to make decisions more quickly, whether for personal use or as an investment,” says Silvia Hengstenberg, co-founder of The Sibarist.
Propiedad de 169 m2 con magnífica terraza en el barrio de Almagro, a la venta por 1,8 millones de euros con referencia THSSEMAD0776.
In terms of typology, they are also very clear about the areas and the models they are looking for in each of them. In Madrid they clearly opt for high-value apartments in the city center, with demanding levels of privacy and security and in neighborhoods with tradition and history, such as Salamanca, Recoletos, Chamberí or Retiro, among others. “Among Latin American and American buyers, the most sought-after properties tend to be large apartments or villas, with modern features, ample space and exclusive services. They are looking for a combination of design and comfort, in central or well-connected locations,” says Hengstenberg.
Vivienda de 510 m² en la zona de Lista, la milla de oro del barrio de Salamanca, a la venta con referencia THSSESMAD0713 por 7,5 millones de euros.
But at the same time the search for more square meters and other services, has led many in recent years to move to single-family homes in exclusive developments on the outskirts of Madrid. This option is not exclusive to international buyers, Spanish families are also increasingly moving to residential areas close to Madrid, or even in the towns of the Sierra de Guadarrama or Sierra Norte, in order to cover more square meters.
Espectacular vivienda de obra nueva en La Moraleja en parcela de 10.000 m2. La vivienda cuenta con 1.800 metros cuadrados y toda clase de comodidades y está a la venta por 14 millones de euros y referencia THSSESMAD0643.
Summering in Spain, and in their own home
Some of these foreigners have become residents through golden visas, by acquiring a real estate property of more than 500,000 euros. During the 10 years that this measure has been in force -it ends next April-, 22,430 procedures related to these residence permits were carried out.
Bonita casa de nueva construcción de 478 metros cuadrados en parcela de 629 en Lamadrid, Cantabria, una localidad muy próxima a Comillas. Mantiene el encanto de lo tradicional con la mezcla única de modernidad y confort muy bien integrada. A la venta con referencia THSSESCAN0094 por 1,10 millones de euros.
Many have taken the step from renting to buying, after stays of several months in Spain, and others are already opting for a second property in coastal areas. “They are becoming more interested in second homes in exclusive resting enclaves, such as recreational estates near Madrid, the Balearic Islands and the Cantabrian Mountains. This movement responds both to the need for a refuge in places of nature and tranquility and to a lifestyle that seeks a balance between work and leisure,” says the director of The Sibarist.
Branded residences: living with the best amenities
Prices are not slowing down, and neither is imagination in this sector. The already highly valued Branded Residences (homes with hotel services, mostly managed by international luxury operators) still have a long way to go, and are expected to grow by 55% until 2026, “Spain is consolidating itself as the new European epicenter for this type of property”, according to Hosteltur. In 2024 alone, 8 projects were confirmed that will see the light of day in the coming months, one of the most eagerly awaited being the SLS Madrid Infantas Residences complex, at number 40 Calle de las Infantas, and bearing the signature of the German hotel company Ennismore. And of course, the almost ready Mandarin Oriental Residences Madrid, on the site of the old building leased to Telefónica, at the intersection of Calle Hermosilla, 47 and Núñez de Balboa, and with prices ranging from 18,000 to 25,000 euros per m2.
Mandarin Oriental Residences en Madrid, un complejo de 30 apartamentos de lujo con servicios hoteleros en plena milla de oro de la capital.
According to Luis Valdés, managing director of Residential Sales Advisory at Colliers, “Madrid, Barcelona and Marbella will remain focal points for the expansion of branded residences, along with other luxury tourist enclaves, including exclusive locations in the Balearic Islands”. For its part, The Sibarist is a market that they are going to take very much into account, as their clients are demanding it, international buyers and investors, who are looking for a mix of luxury, first class hospitality and residential excellence in these projects. “We are always open to explore new horizons and adapt to the demands of a market that is constantly evolving,” concludes Silvia Hengstenberg.
Flexiliving: in the absence of land, models are on the rise
In the same way, segments such as Senior Living or Student Residences will provide an outlet not only for investment capital but also a response to a social demand for properties in line with current demographics and lifestyles. Thus, the number of international students in Spain and the growing tendency of young Spaniards to move to other regions to continue their studies have meant that 2024 will close with 9,000 more beds after a continued addition of 6,500 beds per year since 2020, according to the latest Savills report on these residences. More than 50% of this new supply is concentrated in Madrid (24.2%), Barcelona (14.1%), Seville (7.8%) and Granada (5.5%).
What is known as Flexiliving, refers to properties that provide services to a very varied typology of clients: students; professionals who need a short-stay season; accommodation for family members visiting Spain on a temporary basis; temporary situations while looking for a house. What all their clients agree on is that during this stage they want to feel, on the one hand, the sensation of home, and on the other hand, the comfort of common areas and services at the highest level.
Uno de los estudios de Livensa en Alcobendas, una promotora con varios fondos detrás especializada en flexiliving.
Senior Living, on the other hand, despite being the least mature product in the sector, has a promising future, because although it is currently very localized in coastal areas, and its buyers and residents for now are mostly foreigners (with English and Germans at the head), it is a model destined to grow among the national public. In 2020, the population in Spain over the age of 65 was 9.3 million, and is expected to grow to 15 million by 2050, representing a 60% increase.
That is why developers, real estate companies and service providers must increasingly act fast, in a very dynamic environment where the buyer is changing and often faster than what construction can offer. The Sibarist team has that philosophy, open and all-terrain, for all kinds of pleasurable experiences, starting with one of the most important: your home.