Second hand property sales in Spain expected to slow down during 2024
On the other hand, new builds throughout Spain should retain their high demand
The Spanish property market has experienced a significant recovery in recent years, driven by a strong economy, low interest rates, and increased demand from foreign investors. However, the market is expected to slow down in 2024, particularly when it comes to second-hand homes.
For the moment, it looks as though favourable rates, government stimulus policies and a strong labour market will guarantee that the sale of new homes remains stable, at least for the first few months of the year. This means that "the stock will be reduced at the same rate as there is a lot of demand and little supply," explained Miguel Ángel Gómez Huecas, president of the real estate associations FADEI and AMADEI.
On the other hand, the experts all agree that fewer second-hand homes will be purchased as the banks are making it increasingly difficult to secure a mortgage. This doesn't impact new-build buyers as much, since they are usually clients who can save and later finance, or because they have sold a previous property.
In any case, Casavo's Francisco Sierra expects used housing to remain a key player in the real estate market in the coming year: "Despite a more moderate growth observed in the first quarter of 2023, which could reflect a possible stabilisation in demand or available supply, it is important to note there is currently a reduced stock of homes on sale accompanied by lower demand."
Will house prices continue to rise in 2024?
According to the president of FADEI and AMADEI, new construction prices are expected to increase steadily across Spain, but "hopefully not more than 5%". However, the second-hand market is anticipated to experience more modest growth, with price increases of between 1% and 3% per year.
Nevertheless, certain regions may face challenges in maintaining their prices due to difficulties in securing mortgages and a subsequent need to reduce purchase prices to attract buyers.
Also of interest: Legal aspects of property modifications in Spain
Image: Freepik
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