Spain’s Property Market Update: 2024 Off to a Strong Start

Discover the latest data on Spain's property market in 2024, showing signs of growth and rebounding from previous declines.

The Spanish housing market has shown signs of growth in the first quarter of the year, with the second-highest level of sales in over 15 years, according to the latest data from the Spanish notaries’ association. Despite a fractional increase of 0.2% in home sales compared to the same period last year, the market has rebounded from five consecutive quarters of annualised declines. The exceptional sales boom in 2022, driven by pent-up demand from lockdown, set a high bar for comparison, making 2023 a strong year for the Spanish property market.

In Q1 of 2024, sales were 13% higher than the same period in 2019, indicating a new equilibrium in the market post-pandemic. Foreign demand, which played a significant role in the market's recovery, is showing signs of cooling down this year, though still above the 10-year average. Sales in regions popular with foreign investors varied, with increases in Murcia and the Valencian Community, but declines in Catalonia, Madrid, Andalucia, the Balearics, and the Canaries.

Spanish house prices in Q1 saw a national average of 1,698 €/sqm, a 5% increase from the previous year and a 35% increase over a decade in nominal terms. Prices surged by more than 12% in Murcia and the Balearics, while declining by 3% in Catalunya. Compared to other European housing markets, Spain has been outperforming in recent quarters, with strong and steady home sales and prices that should reassure investors.

The overall outlook for the Spanish housing market is positive, with steady growth and prices that compare favorably to other European markets. However, as with any market, uncertainties remain, and investors should stay vigilant for potential shocks in the future.