Spain Property Market Sees First Quarterly Sales Rise in Over a Year

Discover how house sales in Spain have increased by 1.8% in the first quarter of 2024, breaking a streak of five consecutive quarters of declines.

House sales in Spain experienced a positive growth of 1.8% in the first quarter of 2024, marking the first year-on-year increase after five consecutive quarters of decline. According to data released by the Ministry of Housing on Thursday, a total of 160,884 new and second-hand properties were sold between January and March.

The uptick in sales comes after a challenging year in 2023, where home sales dropped by 11% primarily due to increases in interest rates. Despite the decline, last year's total sales of 638,522 properties ranked as the third highest in 16 years.

Second-hand homes continued to dominate the market in the first quarter of 2024, with 142,521 sales recorded, representing a 2.5% increase from the previous year. On the other hand, newly built properties accounted for 13,575 transactions by the end of March. However, sales in the first quarter decreased by 4% compared to the final quarter of 2023. Specifically, mortgage activity for second-hand homes decreased by 2.7%, while new property mortgages saw a steeper decline of 14.5%.

Foreign buyers played a significant role in the Spanish real estate market, with a total of 29,698 sales recorded between January and March. Among them, 16,848 sales were made by foreigners residing in Spain, while non-resident foreigners accounted for 12,850 transactions.

In terms of regional sales, Andalucia led the way with 31,095 home sales in the first quarter of 2024, followed by the Valencian Community with 27,357 sales (up 4.6%), and Catalunya with 23,938 sales (up 1.4%).

The increase in house sales in Spain during the first quarter of 2024 signals a positive trend after a period of decline. The market continues to be driven by strong demand for second-hand properties, while new property sales face challenges. Foreign buyers remain active participants in the market, contributing to overall sales figures.