Summer Trends in Property Transactions and Prices
Experts in the real estate industry have observed a common trend where property transactions tend to increase during the summer. This seasonal surge is often accompanied by a slight increase in property prices. So far this year, prices have moderately increased by 1% to 2%, a figure that is lower than the expected inflation rate of above 3%. Alfa Inmobiliaria, a real estate company, predicts that new builds may see a higher price increase due to their scarcity and modern construction standards.
Factors Influencing Price Increase
Jesús Duque, the vice-president of Alfa Inmobiliaria, explains that the price increase is dependent on several factors. He believes that prices will rise because the issues causing the increase have not been reversed. He also anticipates an increase in the number of transactions during the summer, especially among private buyers who are at an advanced stage of decision-making, have pre-approved financing, and have a clear understanding of the market.
Summer’s Impact on Property Transactions
Summer is known to expedite property transactions, which could stabilize prices or even push them slightly upwards due to the readiness to close deals quickly. However, significant price increases are not expected.
Expectations for Rising House Prices
Leonardo Cromstedt, the president of Keller Williams Spain-Andorra, expects house prices to continue rising this summer due to several key factors. These include the expected downward correction of interest rates, which will make mortgages more affordable and stimulate buying. Additionally, housing is considered a safe haven during times of high inflation, attracting both investors and private buyers, especially in high-value urban areas.
Seasonal Market Activity’s Role in Price Increase
Cromstedt also highlights the role of seasonal market activity in the price increase. Many buyers take advantage of their free time during summer to arrange viewings and close transactions, which puts upward pressure on prices. Based on these factors, Keller Williams projects a slight increase of 1% to 3% in house prices between now and September/October.
Summer Home Buyers and Sellers
During the summer months, Alfa Inmobiliaria notes a mix of buyers who need a new home for the new academic year in September and the usual turnover in housing supply. Many owners put their properties on the market to take advantage of the seasonal peak in demand, while others withdraw them for various reasons.
Regions Expected to See a Rise in House Prices
Duque notes that the real estate sector picks up during this time of year on the coast and in large cities. This increase is driven by buyers who use their holidays to view and decide whether to buy a property. According to their data, property viewings increase on average by 10% during the summer, reaching up to 15% in coastal areas.
Coastal Areas and High-Value Urban Areas
Coastal areas become particularly sought after due to the large number of holidaymakers looking to purchase a second home or an investment property. This increase in demand translates into upward pressure on prices. In big cities, summer gives buyers more free time to explore and decide on purchases, which also generates an increase in prices.
Most Active Regions in Property Sales
The most active regions in terms of property sales in the coming months will be those with a dynamic economy, attractive for tourism, with good infrastructures and a better quality of life. Madrid and Barcelona continue to be the main economic centres that attract foreign buyers in Spain. Other cities such as Malaga, including Marbella and Estepona, the Valencian Community, with Valencia and Alicante leading the way, and the Balearic and Canary Islands are also very interesting destinations for both Spanish and Northern European buyers.
