Spain is strengthening its position as one of the leading destinations for real estate investment in the European Union, with Catalonia emerging as a key hotspot. In particular, foreign investors are increasingly drawn to the region’s high-end and luxury property market. But which areas stand out as the most desirable? And what can we expect from the market in 2025?
The power of Barcelona for luxury
Lucas Fox’s report on the Spanish property market analyses several regions in Catalonia, concluding that property sales in the province of Barcelona rose by 6% in the first half of 2024, with a notable 12% increase in the second quarter. This growth has been driven by rising demand from both local and international buyers.
Sales to foreign investors grew by 8% in the first half of the year and surged by 14% in the second quarter, highlighting strong international interest. Foreign buyers accounted for 17% of total sales during this period.
Regarding Lucas Fox’s own operations, 37.5% of its transactions in the first half of the year were concentrated on the Costa Brava, 12.5% in Barcelona, 12.5% in Garraf, 12.5% in Ibiza and the same percentage in Madrid. Meanwhile, Alicante and Andorra each accounted for 6.3% of the company’s total transactions. This reinforces Catalonia’s position as a key hub for high-end property sales.
The areas considered premium in Catalonia
Alvise Da Mosto, Managing Partner at Barnes Spain, highlights that the prime property markets in Catalonia are mainly in Barcelona, particularly in the neighbourhoods of Sarrià, Sant Gervasi, Pedralbes, Eixample and Gràcia. On the Costa Brava, key locations include Begur, S’Agaró, Cadaqués, Palafrugell, Peralada, Tamariu and the Maresme region.
These areas are also highlighted in the Lucas Fox report, which notes that property sales in the province of Girona – home to the Costa Brava and Empordà – rose by 1% in the first half of last year. This growth was driven by increased Spanish demand, which helped counterbalance a 14% decline in foreign buyers.
The report also highlights that total sales in the Pyrenean regions of La Cerdanya and Andorra – both key areas in this segment – declined by 17% in the first half of the year, largely due to a drop in sales volumes in Andorra, the region’s largest market. However, in La Cerdanya, which lies in the Catalan province of Girona, east of Andorra in the Pyrenees, sales grew by 19% in the first half and surged by nearly 50% in the second.
Meanwhile, home sales in the province of Tarragona – which includes the historic capital and the Costa Dorada – rose by 2% in the first half of the year. This increase was driven by growing local demand, which helped offset a decline in purchases by foreign buyers.
International and local entrepreneurs, luxury housing profiles
According to a Barnes spokesperson, buyers of luxury properties in Catalonia are predominantly international, with demand coming from French, German, British, Scandinavian, American and Asian investors, as well as local professionals and business leaders. These include entrepreneurs and executives working in Barcelona’s key industries, such as tourism, technology and finance.
In Barcelona’s prime areas, average property prices reach €7,200 per square metre. On the Costa Brava, prices vary significantly depending on the type of property. Farmhouses typically range between €3,000/m² and €5,000/m², while flats and houses are generally priced between €4,000/m² and €6,000/m². In the Maresme region, prices can easily exceed €4,000/m².
An unstoppable market in 2025
Alvise Da Mosto, Managing Partner at Barnes Spain, predicts that demand for prime properties in Catalonia will likely increase in 2025. The key drivers behind this trend include the continued attraction of international buyers, who account for a significant share of luxury property investment in Catalonia – particularly in Barcelona and the Costa Brava. Additionally, the expected drop in interest rates is set to encourage buyers who have been waiting on the sidelines.
According to Da Mosto, investing in prime assets remains a safe haven. “Given the global instability we are experiencing, buyers are looking to place their capital in secure investments,” he explains.
The trend is clearly on the rise, with no signs that the number of prime property transactions will decline in 2025. On the contrary, the market is expected to remain strong.
According to the Lucas Fox team, Spain’s property market reflects the country’s economic outlook, population growth and appeal to foreign investors – all of which are moving in a highly positive direction. The IMF has raised its growth forecast for Spain to 2.9% this year, the highest among developed economies, with similar expectations for 2025.
“Its enduring appeal as a destination offering a unique lifestyle continues to attract growing interest from an increasingly diverse pool of foreign investors, particularly in the high-end segment,” notes the report. “This is a key factor for international buyers, especially those from Northern Europe, as well as North and South America. Additionally, falling interest rates are lowering financing costs, which may boost purchasing activity among both local and foreign buyers in the coming months. Overall, we expect the market to maintain its positive momentum for the rest of the year and into 2025.