The 2024 Spanish Real Estate Market Report by Luxe-villa delves into the latest trends, key statistics, and market dynamics shaping one of the most robust years in Spanish real estate history. With the IMF predicting a 2.9% growth rate for Spain – the highest among advanced economies – the Spanish market is outperforming EU averages in both sales and price growth. For example, Q2 2024 price growth in Spain was nearly three times higher than the EU average.
What’s Driving the Market’s Strength?
Several factors are fueling this exceptional performance:
- Falling Interest Rates: Reduced borrowing costs are expected to further boost local and foreign buying activity in the coming months.
- Lifestyle Appeal: Spain’s enduring status as a premier lifestyle destination continues to attract international investors, particularly from Latin America, the United States, and Northern Europe.
- Strong Domestic Demand: Local buyers are playing a key role in maintaining market momentum.
Key Highlights from H1 2024
- Home Sales Growth: Residential sales increased by 6% year-on-year, reaching the second-highest volume in over 15 years.
- Price Growth: National average house prices rose by 5% in H1, significantly outpacing EU averages.
- Foreign Buyer Surge: Foreign buyers accounted for 19% of total sales, representing a 28% increase compared to the 10-year average.
- New Home Sales: Sales of new homes surged by 24%, reaching a decade high, though housing starts dropped by 53% year-on-year.
- Premium Property Boom: High-end properties, particularly branded residences in Marbella, Barcelona, and Madrid, saw heightened demand.
In-Depth Market Analysis
Transactions on the Rise
A total of 350,818 residential property sales were recorded in the first half of 2024 – the second-highest in the last decade. With interest rates trending downward, sales are expected to gain further momentum in H2 2024.
Trends in Pricing
The Spanish real estate market has seen a 26% increase in asking prices since Q1 2019, outpacing the 21% rise in sales prices over the same period. Despite rising costs, the market remains resilient, with consistent growth quarter-on-quarter.
Mortgage Lending Stays Strong
New mortgage lending increased by 14%, with 21% more mortgages signed than the ten-year average. Even amidst higher interest rates, lending activity remains robust, buoyed by favorable Euribor trends.
New Developments Lagging Behind
Despite high demand, Spain faces a significant shortfall in housing supply. The rolling four-quarter total of planning applications is lower than in 2019 and has been declining for two consecutive years.
Foreign Buyers Propel Growth
Foreign buyers continue to play a pivotal role in the Spanish property market, accounting for 64,375 residential sales in H1 2024 – the second-highest level on record. Notably, foreign sales grew by 5% in Q2, reaffirming Spain’s global appeal.
Spotlight on the Prime Market
The prime property market – homes priced at €2.5 million or more – saw a 7% increase in listings, with 14,200 prime properties now available. Regions like Málaga and Mallorca dominate the segment, accounting for 57% of prime market supply.
Luxe-villa Buyer Profile
Luxe-villa continues to lead in serving a diverse clientele:
- 66.9% of buyers were international, while 33.1% were local.
- 48.3% of sales were apartments, and 38% were houses/villas.
- Among foreign buyers, 62.3% came from the EU, with the Netherlands representing a notable 8.2% share.
- 17.1% of buyers hailed from non-EU European countries, and 10.4% from North America.
Explore Your Opportunities with Luxe-villa
As Spain continues to set new benchmarks in the global real estate market, Luxe-villa offers unparalleled expertise, a curated selection of properties, and dedicated assistance in acquiring your dream home. Whether you’re looking in Sotogrande, Marbella, La Zagaleta, or Southern Spain, Luxe-villa is here to guide you.
For more information or to browse properties, visit www.luxe-villa.com
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Our experienced real estate agents are dedicated to helping you find your dream home in Spain. We have a deep knowledge of the Spanish market and can provide you with expert advice and guidance throughout the buying process.
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