Hear this: In 2023, Spain’s real estate market flourished with a %5,33 price increase.
This isn’t unique to Spain, though. Many countries had an increase in price and population. Those embracing 21st-century renovations and knowing how to meet different needs received even higher attention. As a result, countries like Spain played a prominent role in 2023's real estate market.
Last year, even less crowded Spanish towns attracted home buyers. So, what should we expect from Spain this year? Let’s take a closer look at 2023 to understand what happened. Then, we may move on to 2024 to guess what will happen!
A Glimpse of the 2023
First of all, Spain is a beautiful country with sunny days, amazing views, and plenty of fun activities. As a result, its popularity is on the increase. This caused a population boom in Spain, reaching over 47.6 million people. Of all its cities; Estepona, Marbella, and Benalmádena experienced the highest growth.
Secondly, 21st-century problems need 21st-century solutions, and the Spanish government is aware of this. It developed systems like the Digital Nomad Visa and Golden Visa a few years ago. These novelties kept the newcomer rates on a stable increase.
Also, real estate companies in Spain aim to meet modern needs. They developed systems to make overseas purchases quicker and easier. Our Teleproperty ® service is one of them.
Lastly, the housing law in Spain had a minor update in April. This enabled a safer atmosphere for all parties involved in the real estate transactions and rentals.
All of these factors had a positive effect on the real estate prices to climb up in 2023. Let’s see the numbers:
Between January 2023 and December 2023, Spanish real estate had a 5.33% value increase. Its current annual yield is 7.25% and the amortization period is 14 years.
According to Endeksa, these are the rates in some cities:
An Outlook of the 2024 Market
Now that we revised 2023, we can understand the upcoming times better. Spain seems to keep on attracting expats in 2024. This is thanks to its natural beauty, developed infrastructure, and still relatively affordable prices.
But what’s next? Let’s have an outlook on 2024!
Many experts agree that house sales in Spain are on the increase. This will lead prices to go higher. It seems that even the unpopular Spanish towns will at least stay in line with the inflation rate. Experts are confident that popular destinations will display at least a 2-6% value increase.
What to buy and where to buy it?
Spain is a go-to destination for all kinds of seafront living. You may go with villas or apartments for this. Villas for sale in Spain offer a peaceful and detached living. They are favorites among retirees, holidaymakers, and digital expats.
Apartments, on the other hand, offer a modern living space. Most projects include a rich scale of amenities. They provide a safer environment too. As a result, families choose this lifestyle more often.
Costa del Sol, Costa Blanca, and the Balearic Islands gained the most popularity in 2023. Their coastal appeal, Mediterranean climate, developed infrastructures, and friendly locals have a big role in this.
The towns below seem to continue their value increase in 2024:
- Marbella, Orihuela, Estepona, Benalmádena, Villajoyosa, and Torrevieja to buy villas and for a rural life.
- Mijas, Marbella, Fuengirola, and Málaga to buy apartments and for a city life. These are the perfect destinations for finding job opportunities.
One of the emerging trends in Spain is sustainable housing. People’s awareness of nature’s importance is quickly increasing, and governments have a big role in this. The eco-homes in Spain are respectful of Mother Nature while still meeting the housing needs.
In addition, real estate buyers in 2024 give more importance to a property's location and design. Practical and contemporary features are also very important. The millennials buying homes in Spain go with them as well!
What to Expect in 2024? | FAQ
Here are the answers to the most frequently asked questions about market trends in 2024:
What are the downsides of the market?
Here are the current issues in Spain’s real estate market.
- Inventory Issues
In June 2023, the Spanish government warned about the low inventory of real estate in Spain. This means that there are not enough properties to match the demand. Spain attracts more and more home buyers each year. So, this may result in Spain’s property price trends increasing in 2024.
- High-Interest rates
Higher interests often make it harder to get a mortgage and buy a home. And, just like the globe, Spain has a high interest rate today. European Central Bank (ECB) doesn’t seem to lower the interest rates anytime soon. So, what now?
High interest rates make it harder to buy a house. So, demand for rental properties is likely to increase in 2024. Also, investors may turn their steps to affordable and smaller towns. As a result, these towns will become smart investment destinations.
Consequently, higher interest rates make houses more valuable. So, homeowners are likely to have higher returns in the future.
What are the main factors in the Spanish real estate market?
Various factors have effects on the market in Spain. These are the important ones:
- Domestic and external immigration
- Increasing demand for housing
- Motivating government policies
- Economic stability
- Interest rates
Is 2024 a good time to buy a home in Spain?
Yes! The prices are on the increase, and the amortization period is shorter than in most countries. As a result, property investment in Spain meets all expectations.
Increasing prices alone won’t mean much, but Spain is more than that. If your dream is to have a peaceful life in a seafront location with all amenities within your reach the answer is still yes!
Still, yet, Spain is more than sea-sun-sand. It has lots of activity options for different tastes and age groups. As a result, it attracted newcomers and seems to do so in the future.
Would you like a place in Spain's exciting and sun-kissed real estate market? Call us today to get it!