The market for luxury apartments for rent, which starts at 6,000 euros per month and reaches 28,000, is not immune to rising prices, the lack of supply nor, strange as it may seem, to the demand for guarantees from tenants. which, sometimes, are “more strict than in the standard rental, due to the high value of the properties,” says François Carriere, CEO of Coldwell Banker Spain. This agency has one of the most expensive apartments in Barcelona in its portfolio: a 445-square-meter, three-bedroom apartment in the emblematic Casa Burés, located in the Dreta neighborhood of l'Eixample, which rents for 26,500 euros per month. The highest price is an apartment rented by the Bernadó Luxury Houses agency in Plaza del Marqués de Salamanca, in Madrid. They are 432 square meters and ask for 28,000 euros. Or one of the apartments in Centro Canalejas, which Viva Sotheby's International Realty rents for 25,000 euros per month. It is 344 square meters and has the exclusive services of the Four Seasons hotel. In Malaga, a 486 square meter apartment in Sierra Blanca Tower is offered for 15,000 euros, although in this city, as in Valencia, the prices They do not reach such high levels. Palma is another of the flagships of luxury, although the bulk of exclusive properties are concentrated much more in large houses – where prices can reach 60,000 euros per month – and somewhat less in apartments. Paloma Pérez, CEO of Viva Sotheby's draws the picture: “Luxury rental prices in Spain experienced growth of between 5% and 6% in 2023 and by 2024 they are expected to continue rising, although at a more moderate pace than 4%”. If the focus is on very high-end products, the increase in prices is more pronounced: “In the most exclusive areas, rental prices have increased by 20% in the last two years. We do not see indicators that make us think that it cannot continue rising at these rates,” says Iván Redondo, general director of John Taylor Spain and Andorra. It must be remembered, however, that these prices are still more attractive than those of the main cities in the world. This is one of the reasons why more and more people with high purchasing power, especially international ones, are looking for rentals in Spain. Money is not a problem. Clients are expatriates, businessmen, retirees, digital nomads, diplomats, executives, athletes and artists. Everyone demands properties adjusted to their high demands: a good location, a significant size (they usually have 200 to 600 square meters), quality of the finishes, careful interior design, spectacular views, large terraces and additional services such as security, gym, home cinema or swimming pool. “Having easy access to international schools, shopping centers, luxury restaurants and sports facilities significantly increases the value,” says Beatriz Alberte, director of Madrid rentals at the luxury agency Gilmar, whose portfolio includes apartments in the neighborhood. from Salamanca ranging from 10,000 to 13,500 euros per month.
The most demanded
The penthouses and apartments on the highest floors are the most in demand. “They must be in perfect condition, whether new construction or renovated, and the appliances must be of the latest generation and top brands,” explains Pedro Suyo, head of rentals at Lucas Fox Barcelona, in whose portfolio luxury apartments start from 9,000 euros per month. The existence of security and home automation systems, high-end kitchens or whirlpool baths is also essential. “In order to say that an apartment for rent is luxury, its general qualities must also be, and the bathrooms and kitchens in particular. If these pieces are not top, it will not be a premium property,” says Redondo. One of the peculiarities of these homes is that not all of them make it to the market. Michela Panteghini, rental director at Gilmar Málaga explains it: “They have a more personalized treatment, almost everything is done by client portfolio and they are not advertised.” The rental term is usually around one or two years, depending on the profile of the client. tenant, who is required to demonstrate that he has the ability to pay. As the average person is asked for “abundant documentation proving solvency,” says Mario Garnica, director of Engel & Völkers Málaga. And, “it is very important to make a good inventory and clarify insurance for works of art,” adds Albert González, team leader of Engel & Völkers rentals in Barcelona. The risk of non-payment also exists for the owner of a luxury home. For this reason, Alberte recommends “taking out rental insurance or asking for a minimum of three months of payment guarantee, apart from the legal deposit (two months if it is furnished)”. These rentals can be governed by the Urban Leases Law (LAU). ) or not, since there are properties that are excluded due to their size. A sumptuary or luxury home is one that exceeds 300 meters of constructed area or for which an annual rental income of more than 5.5 times the interprofessional minimum wage is paid. In these cases, the rental is not subject to legal regulation, it is freely governed by the will of the parties. Luxury housing for rent is concentrated, above all, in Madrid, Barcelona, Malaga, Palma and Valencia. In the capital, the most expensive areas are the Salamanca neighborhood, Los Jerónimos, Chamberí, El Viso and the urbanizations of La Moraleja, La Finca, Somosaguas, La Florida and Valdemarín. In addition to Latin American clients, demand from North Americans has increased in the last year, “due to the proximity to the rest of the European capitals at cheaper prices,” indicates Gilmar's rental director. Barcelona is one of the cities in the world where the price of luxury housing is growing the most. “Two years ago the most expensive apartments and houses were around 18,000 euros per month and now they are around 25,000 euros,” says González. These rentals are focused on Pedralbes, Sarrià-Sant Gervasi and Dreta de l'Eixample, according to Pedro Suyo. In Malaga the market is small. “Only in recent years have projects focused on clients with high purchasing power been carried out,” says Mario Garnica. Prices “have risen 13% compared to September 2023,” says Panteghini. In the case of Palma, focusing on the old town, “luxury is found in apartments starting at 7,000 or 8,000 euros,” the Engel & Völkers Palma agency reports. In Valencia “luxury is considered starting at 5,000 euros.” euros monthly. Unlike Madrid or Barcelona, the threshold is somewhat more accessible, due to the size of the market and the available offer,” says Karen Muiños, sales manager of Lucas Fox Valencia. There is a clear shortage of properties here compared to the growing demand, especially in Pla del Remei, in the L'Eixample and Ciutat Vella area.