So what is a prime or super-prime property?
Prime or super-prime property defines a prime home as one costing $1m or more, while many property professionals label homes worth upwards of $10m as super-prime.
- The prime market comprises properties in the top 5% of the market by house price and includes the most desirable and aspirational property by reference to location, standards of accommodation, aesthetics and value.
- Super-prime residential property is typically defined as the top 5% of the most valuable homes in a geographical area or postcode.
As wealthy investors shorten their search, super-prime properties are to include beautiful views of park, sea or city, allowing only a minute number of areas capable of achieving super-prime status.
As an example London, where world’s super-rich flock to snap up the super-prime residential property, although this has slowed greatly in recent years due to Brexit. Although London is still the world leader for the best super-prime homes which are limited to a few prestigious postcodes which surround the famous Hyde Park.
World leaders in Super Prime property
- New York
- Hong Kong
There’s a coincidence that the top three cities in the list are the only ones that can really claim to have a genuine super-prime residential property market. By examining the market for sales over the equivalent of $10m, it is just London, New York and Hong Kong that can claim more than 200 sales per year above this threshold.
So how does Spain fair in this market and which areas are the best in this sector?
The Spanish Department of Development reported the following statistics to there prime sales (sales over €900.000):
We have seen continued growth throughout 2018 in the Spanish property market so far with 217,539 properties exchanging hands in the first five months of the year, data supplied from the National Institute of Statistics
The number of prime sales transactions in the whole of 2017 also increased compared to those in the whole of 2016, by 34%
The best results are from the following areas:
- The number of prime market sales transactions in Málaga Province in the whole of 2017 increased by 31% compared to the prime sales in the whole of 2016.
- The number of prime market sales transactions in the Community of Madrid in the whole of 2017 increased by 54% compared to the prime sales in the whole of 2016.
- The number of prime market sales transactions (over €900,000) in Barcelona in the whole of 2017 increased by 36% compared to the number of prime sales in the whole of 2016.
- The number of prime market sales transactions in the Balearic Islands in the whole of 2017 increased by 23% compared to the prime sales in the whole of 2016.
The first two quarters of 2018 a number of agents have reported excellent growth in sales in the prime sector with reports of the average sale price of in excess of €1,000,000, and while super-prime sector in Spain growing areas such as Marbella, Madrid and Barcelona and an overall growth in sales across the board.
Current trends in Marbella show the most popular properties are Nueva Andalucía apartments from €150.000 to just under €1 million and villas from the latter price up to €2,5-€3 million. The most popular is apartments of around €500.000 in prime spots close to services. For villas, it’s for three-bed and up properties of up to €2 million in prestigious areas close to beaches and amenities. Gated communities and well-established areas are an important extra. In the segment above €3 million, the prestige of the area is important along with commanding views.
Its worth noting that some of the most exclusive and expensive property in Spain is found in Marbella with a beachfront estate available at 80 million Euros and a huge Neoclassical style mansion for 32 million euros both situated on the world famous Golden Mile, with another in La Quinta on one of Marbella’s most exclusive gated communities with a price tag of 23 million Euros just to highlight a few. So while Marbella has made its mark with Prime property in the world, the super prime market may be small but Marbella is the place to find some of the most exclusive homes in the world with an unmatched lifestyle free of charge!
Are you looking to buy prime or super prime property in Marbella? These properties are generally not advertised publicly. Let us know what your lifestyle and property requirements are and we will find your perfect property.