The year 2023 in the Spanish real estate market is characterised by an increase in the prices of homes for sale and a decrease in mortgage transactions. Despite this, demand remains high, causing prices to rise. The new housing law has had a negative impact, reducing rental supply and pushing up prices. Home sales have declined by around 8-10%, but still rank as one of the best years in the last 15 years.
In the rental market, prices have increased by 9.2%, and permanent supply has decreased by 12%, while the temporary rental option has grown by 40%. The profitability for investors varies from city to city, with Murcia and Lleida standing out with 8.3% and 8%, respectively. Difficulty for tenants and the need for changes in rental policies to increase supply stand out as persistent problems.
2024 is expected to be a year of continuing trends in the Spanish property market. No significant drop in house prices is foreseen, and demand could reactivate, increasing tensions in the market. In renting, the upward trend in prices continues, especially with the rise in seasonal rentals. Mixed mortgages could continue to be popular, and uncertainty in interest rates could influence the affordability of loans. In short, challenges persist in the real estate sector, with demand potentially driving up prices.
