Economic experts assure that investing in real estate is always a wise decision, taking into account that there must be a flow of capital in the area where it is located. Real estate includes homes and, on this occasion, we want to talk to you about one type in particular: luxury homes. The purchase of these properties can go far beyond enjoyment. Undoubtedly, prime housing is also an excellent investment. We explain the reasons.
Why invest in luxury homes?
Luxury homes are a true delight for the senses. Its location, top quality materials, the latest technology in home automation, the uniqueness of its equipment and its careful decoration are the main characteristics that define luxury homes. These are really attractive buildings for anyone, and their attractiveness is precisely what makes them interesting assets to invest in. Butwhat are the advantages of investing in a luxury home or villa? Let’s see.
Easy resale
If you are thinking of investing in a property to sell it in the future without much delay, a luxury home will suit you like a glove. These homes are completely finished, ready to move in. This means that selling luxury homes is a fairly quick process. In addition, there is a growing number of foreign homebuyers in Spain who are particularly interested in the luxury sector.
Guaranteed rental
If you decide to put a luxury house for rent, you will have an important source of income that, after the recent rise in inflation, is even more interesting. And, beyond the amount that you can receive, luxury homes have the advantage that they are usually rented to people with a very solvent profile that gives you security in the payment.
It is worth noting that experts foresee a lot of activity in the Spanish rental market in 2022 and beyond, especially if the property is located in high demand areas such as Madrid, Barcelona or San Sebastian.
High profitability
The profitability of housing in general was already at 7% during the second quarter of 2021, well above shares, bonds, deposits or inflation, according to data from the Bank of Spain. This is the result of the rise in housing prices, which in November 2021 accounted for 9.5% year-on-year. On the other hand, it should be noted that rising inflation and low interest rates mean that investing in luxury homes far outstrips investing in other similar assets that are considered safe.
Positive outlook
According to experts, this trend will continue in 2022, because supply in prime housing continues to lag behind demand, which has continued to drive up prices. In particular, prices are expected to rise by 5% this year. In addition, Madrid will be one of the five cities in the world where the price of luxury homes will grow the most in 2023, predicting an increase of 6% in the capital.
This is partly due to the arrival of new investors from Peru, Chile and Colombia, as well as national buyers looking for homes in privileged areas that meet the conditions.
In short, if you have money saved and are looking for a safe, highly profitable investment that can give you immediate benefits whenever you want, luxury homes are the best option for you. As we pointed out, few investments have as many advantages as the purchase of an apartment, house or villa of high standing.
