Post by account_disabled on Mar 13, 2024 3:27:02 GMT -5
François Carriere is the CEO of the American real estate company Coldwell Banker for Spain and Andorra. In addition, he is a leader in the real estate sector with a professional career of more than 20 years. Originally from Monaco and linked to the Monegasque Pastor family, he began his career in the luxury real estate sector in Europe in 1998, where he applied the philosophy of the “American Way of Work” that comes to him from his years in San Diego, when he was studying for a Bachelor's degree. in Business Administration and Management at the University. The manager, based in Barcelona, sees the luxury market as a 'rare bird' within Spanish real estate , and assures that it will become increasingly polarized.
How is the first half of the year going for the luxury market?
Luxury, in general, is a business that moves at a different pace than the rest. Talking about luxury is talking about a very small portion of the real estate sector and is not Phone Lead characteristic of the evolution of the market. Luxury has exploded in the last two-three years, with post-covid. We had a very strong stoppage and then a very strong reactivation, with many buyers closing transactions. This was also helped by the fact that interest rates were very close to 0%, inflation was down, economic activity was very strong... now everything has changed, and all these indicators have skyrocketed. Since the beginning of 2023, the panorama has changed drastically. Day and night. From living an idyllic panorama to a very turbulent one, with skyrocketing inflation, rates close to 3.5%, an energy and political crisis, a war... all this has caused the real estate market to contract very strongly.
However, luxury has continued its path. Foreigners still want to buy in Spain, since they have money, especially Americans, who take advantage of the strength of the dollar, who already buy with a 20% discount just for the currency exchange.
Madrid is becoming the European Miami in terms of luxury. Marbella, for the urban configuration it has, for its product mix, for the quality of its properties, architect houses. Ibiza, obviously, and Mallorca. These are the four poles. Barcelona is a somewhat smaller market that, although it has carried out very important operations, does not have the volume or the capacity to generate assets as unique as is being done in other cities in Spain.
You work a lot in the Barcelona area. How has the last year been in the city and what do you expect the change of city hall for luxury to be like?
The real estate sector in Barcelona has been in struggle for the last eight years, and this has meant that the residential park is not renewed, for example. There is a policy of challenging the owner, of legal uncertainty, and this makes investors hesitate. Until today, if they had to invest in Barcelona or another city, they chose other options. This has also led to the price in Barcelona stabilizing a bit, but also to the absence of spectacular projects, which is what this city should have.
Until there is an active regeneration of the residential sector, we will continue with some specific operations. But people looking to invest in spectacular properties will have to go to other cities.
How is the first half of the year going for the luxury market?
Luxury, in general, is a business that moves at a different pace than the rest. Talking about luxury is talking about a very small portion of the real estate sector and is not Phone Lead characteristic of the evolution of the market. Luxury has exploded in the last two-three years, with post-covid. We had a very strong stoppage and then a very strong reactivation, with many buyers closing transactions. This was also helped by the fact that interest rates were very close to 0%, inflation was down, economic activity was very strong... now everything has changed, and all these indicators have skyrocketed. Since the beginning of 2023, the panorama has changed drastically. Day and night. From living an idyllic panorama to a very turbulent one, with skyrocketing inflation, rates close to 3.5%, an energy and political crisis, a war... all this has caused the real estate market to contract very strongly.
However, luxury has continued its path. Foreigners still want to buy in Spain, since they have money, especially Americans, who take advantage of the strength of the dollar, who already buy with a 20% discount just for the currency exchange.
Madrid is becoming the European Miami in terms of luxury. Marbella, for the urban configuration it has, for its product mix, for the quality of its properties, architect houses. Ibiza, obviously, and Mallorca. These are the four poles. Barcelona is a somewhat smaller market that, although it has carried out very important operations, does not have the volume or the capacity to generate assets as unique as is being done in other cities in Spain.
You work a lot in the Barcelona area. How has the last year been in the city and what do you expect the change of city hall for luxury to be like?
The real estate sector in Barcelona has been in struggle for the last eight years, and this has meant that the residential park is not renewed, for example. There is a policy of challenging the owner, of legal uncertainty, and this makes investors hesitate. Until today, if they had to invest in Barcelona or another city, they chose other options. This has also led to the price in Barcelona stabilizing a bit, but also to the absence of spectacular projects, which is what this city should have.
Until there is an active regeneration of the residential sector, we will continue with some specific operations. But people looking to invest in spectacular properties will have to go to other cities.