Forecasted Rise in Housing Prices in 2024
The Spanish real estate market is expected to witness a steady rise in housing prices in 2024. The first quarter of the year has already seen a recovery in transaction volumes, albeit lower than the figures recorded at the start of 2023. The 1st Solvia Market View 2024 predicts a slight upturn in housing costs towards the end of the year, with increases ranging between 2% and 3%. This is primarily attributed to the supply shortage in the market.
Overview of House Prices in Spain
In the first quarter of 2024, housing prices reached €1,998/m2, reflecting an increase of 0.8% compared to the previous quarter and 4% compared to the same period in 2023. The new build sector saw a year-on-year increase of 4.7% and a quarterly growth of 3%, reaching €2,233/m2. Used housing prices also showed a year-on-year upward trend, with a growth of 3.6%, standing at €1,940/m2. However, they experienced an adjustment of 0.2% in year-on-year terms.
Property Transactions Expected to Adjust Between 3% and 5%
A total of 151,476 transactions were carried out, representing an increase of 16.6% over the previous quarter, indicating a recovery in activity. However, this figure represents an adjustment of 5.9% compared to the same quarter last year. New home sales reached 31,226 transactions, 20.6% of the total, reflecting a quarterly increase of 30.1% and a year-on-year rise of 2.5%.
Barcelona, Madrid, and the Balearic Islands: The Most Expensive Rental Areas
The 1st Solvia Market View 2024 reveals that rent continued to rise in the first quarter, reaching €12.5/m2 per month, representing an increase of 2.5% compared to the previous three months and an even more notable increase of 7.8% compared to the same period in 2023. Barcelona continues as the province with the highest rent, with an average value of €17.9/m2 per month.
Decrease in New Building Permits in 2024
The 1st Solvia Market View 2024 reports that 25,284 permits were issued for building new homes. This represents a drop of 5.3% compared to the previous quarter and a decrease of 11.1% compared to last year, indicating a downward trend in granting building permits.
Coastal Housing in Spain: An Overview
The growth of tourism, the start of the summer season, and the economy’s gradual improvement mean that it is now a good time to invest in a second home in coastal areas, both for investors and private individuals. The coastal areas with the highest house prices include Santa Eulalia del Río in Ibiza, Balearic Islands, with a cost of €5,195/m2, Ibiza Town itself (€4,625/m2), San Sebastián (€4,378/m2) in Guipúzcoa, Calvià in Mallorca (€4,273/m2), Castelldefels (€3,628/m2) in Barcelona, Getxo (€3,334/m2) in Vizcaya, and Marbella (€3,255/m2) in Málaga.
