At the recent launch of the 2nd Edition of Graham Associates’ report “Branded Residences: An Overview”, Daniel von Barloewen (Director of Savills International Development Consultancy) presented some interesting original data about who is buying luxury property around the Mediterranean, compiled from a survey of its regional offices and sales partners. Some of the main findings are as follows:
Mediterranean ‘Second Home’ Market:
• Strongest demand is for 2 & 3 bed apartments and 4 & 5 bedroom villas.
Who is Buying?
• 63% of buyers are Baby Boomers (50-70), with just under one-third being Generation X (35-50).
Sales Achieved by Price Bracket:
• 80% of all sales are under €1.5 million, with 49% spending under €500,000; 6% of buyers are spending between €3m – 5m.
What Are Buyers’ Budgets?
• 71% of buyers are looking to spend under €1.6m, with 43% looking to spend under €600,000. 9% of buyers are looking to spend over €5m.
What Is The Motivation Among Buyers?
In the 2 years from 2015 to 2017 there has been:
• A 75% increase in Primary Home buyers, driven largely by recovering domestic markets.
• 31% decrease in Holiday Home buyers (i.e. for own use only), from 64% down to 44%.
• 36% of all buyers are now driven by an investment angle (either as a pure investment or for some personal use and letting to generate income), increasing by 50% since 2015.
A complimentary copy of the full report ‘Branded Residences: An Overview’ can be downloaded at www.gagms.com.
