Why do house prices continue to rise if fewer flats are coming?

The current dynamics of the real estate market in Girona present an interesting paradox. Despite the fact that sales have fallen by 30% in the last quarter, house prices have registered an outstanding annual increase of 5.7%, marking the steepest rise among the Catalan provinces.

This phenomenon seems to be driven by the persistent demand for housing, yet the decline in transactions. This has created a supply-demand imbalance, with many owners reluctant to adjust prices downwards, hoping for an eventual market recovery.

Concerns also arise from the economic and legal context. Some forecasts take a pessimistic view, anticipating falls of 10% in sales and 5% in prices, attributing this to factors such as the rising cost of living, rising interest rates and legal uncertainty arising from the Housing Act.

A notable aspect is the continuity of foreign demand, which accounts for approximately 30% of real estate transactions in Girona. This trend has remained resilient after the pandemic, offering a certain balance to the local market.

Despite the uncertainties, some projections point to a possible stabilisation of prices during the first quarter of 2024, with an estimated year-on-year variation between +1% and -2.5%. This would suggest a continuation of the moderation observed in the market during 2023, after the acceleration experienced in 2022.

 

Why do house prices continue to rise if fewer flats are coming?
This website uses its own and third-party cookies to improve the browsing experience as well as for analysis tasks.

What are cookies?

A cookie is a small file stored on the user's computer that allows us to recognize it. The set of cookies help us improve the quality of our website, allowing us to monitor which pages are useful to the website users or and which are not.

Acceptance of the use of cookies.

Necessary technical cookies

Always active

Technical cookies are absolutely essential for the website to work properly. This category only includes cookies that guarantee the basic functions and security functions of the website. These cookies do not store any personal information.

Analytic cookies

All cookies that may not be particularly necessary for the website to function and are used specifically to collect personal data from the user through analysis, ads and other embedded content are called unnecessary cookies. You must obtain the user's consent before running these cookies on your website.