As we step into the new year, the Spanish property market continues its upward trajectory, building on the momentum gained in 2023. January of 2024 has witnessed sustained and even increased property sales in various locations across the country.
Despite the prevailing stability, interest rates appear resistant to immediate reductions, prompting speculation about the upcoming trends in the Spanish real estate landscape.
According to Tinsa’s latest monthly report, Spanish property prices have experienced a notable 4.3% increase in the year leading up to October 2023. The European Central Bank (ECB), however, shows no imminent plans for a substantial reduction in interest rates. Consequently, the Spanish mortgage market is anticipated to maintain a level of stringency.
The BBVA bank forecasts a 3% rise in property prices for the coming year. In contrast, Fotocasa, an online property platform, contends that prices will likely remain steady. They attribute this stability to a robust job market, sustained demand from investors and foreign buyers, and stress that average property prices are still 22% below the 2007 peak.
Experts also highlight a ‘chronic’ shortage of supply in the Spanish property market, a trend expected to persist in 2024. This scarcity is particularly noticeable in coveted locations such as Spain’s major provincial capitals, the Costa del Sol, the Balearics, and certain parts of the Costa Blanca.
So, based on current information, Spain is poised for a year of stable property prices, potentially with localized increases in areas of high demand throughout 2024.
