Spain Property Market Sees 20 percent Decline in March Sales

The INE's recent figures reveal a 20% year-on-year decrease in property sales in Spain for March. Stay up to date with the latest developments in the Spanish real estate market.

The property market in Spain took a hit in March, with a 20% decrease in sales compared to the previous year, as reported by the National Institute of Statistics (INE). This decline has raised concerns among industry experts and potential buyers alike. As the real estate landscape continues to shift, it's crucial to stay informed on the latest trends and developments in the market.

Spain Property Market Sees 20% Decline in March Sales

The real estate market in Spain experienced a significant decline in home sales in March, with a drop of almost 20% compared to the previous year. According to data released by the National Institute of Statistics (INE), a total of 44,878 transactions were carried out, marking a 19.3% decrease from the same period last year. This negative trend followed a brief rebound of 5.8% in February, which had ended a streak of 12 consecutive months of year-on-year declines.

The decline in home sales in March was primarily driven by a decrease in transactions involving new flats, which saw a 14% drop year-on-year, totaling 8,917 deals. Additionally, second-hand home sales experienced a significant decline of 20.5%, amounting to 35,961 transactions. On a month-to-month basis, home sales fell by 15% from February to March. In the first three months of 2024, there was an overall reduction of 5.6% in home sales, with a 3% increase in new property transactions but a 7.6% decline in second-hand home sales.

Regionally, Andalucia led in home sales for March with 8,805 transactions, followed by the Valencian Community (7,423), Catalunya (6,802), and Madrid (5,944). Only two regions experienced an increase in home sales compared to the previous year, namely Navarre (+37.6%) and Cantabria (+3.5%). On the other hand, 15 regions saw annual reductions in home sales, with the Balearic Islands (-39%), Castilla y Leon (-30%), Extremadura (-28.9%), and the Basque Country (-25.9%) being the most affected.

The real estate market in Spain witnessed a significant decline in home sales in March, with both new and second-hand properties experiencing a decrease in transactions. The regional variations in sales performance highlight the diverse impact of market conditions across different areas of the country.