Housing prices

Housing will continue to rise in 2024. During the first quarter of 2024, the Spanish real estate market experienced a recovery in the volume of transactions, although with lower figures than those recorded at the beginning of 2023, and a slight increase in property prices. According to the 1st Solvia Market View 2024, a slight upturn in the cost of housing is expected towards the end of the year, with increases ranging between 2% and 3%, mainly due to the supply shortage in the market.

Perched majestically in Caldera del Rey (Adeje) on the Island of Tenerife, this luxurious estate is a gem of the Canary Islands real estate market.

Housing in coastal areas - considering first and second homes - rose by 5.7% year-on-year in the first quarter of 2024, to €1,740/m2, compared to an average increase of 3.3% in house prices in Spain during this period, according to Tinsa.

Economic theory pointed to a significant crisis in housing prices due to the rise in rates to contain inflation. But the reality is that the fall has been brief and that practically all real estate markets in the world have ignored the rise in rates observing price increases.

Property transactions tend to rise during summer, according to the experts consulted, which is why a slight increase in prices is also predicted. Prices have generally increased so far this year, but only moderately, by between 1% and 2%, a figure lower than inflation, which is expected to remain above 3%. According to Alfa Inmobiliaria, new builds could experience a greater increase in price due to their scarcity and more modern construction standards, which justify a higher price.

The phenomenon of squatting, or "okupación" as it is known locally, has become a significant issue in Spain, impacting property values and creating a complex legal and social landscape.

House prices in Spain rose by 3.3% in May compared to the previous year, with an increase of 0.5% compared to April, but with a particular impact in the island areas, where house prices soared by 8% in the fifth month of the year in year-on-year terms and are only 0.1% below the peak reached during

The growth in the most expensive residential prices on the market reached 7.7% year-on-year in April. The rise in properties located in the 90th percentile of prices, or in other words the 10% of the most expensive homes, was higher than that recorded by the market as a whole, which increased by 6.9% year-on-year, according to the study published by idealista.

The general "Tinsa IMIE General and Large Markets" statistics index for April reflects a year-on-year increase of 3.2%. Still, this increase is more than doubled in the "Mediterranean Coast" (+6.8%) and almost tripled on the "Islands" (+9%). The monthly rate (April vs.

Spain's luxury residential market is experiencing a boom. Climate, infrastructure, quality of life and security are the main reasons why buyers of luxury and ultra-luxury homes (over €5 m) choose Spain to live in. Marbella is one of the epicentres of ultra-luxury. Specifically, the most expensive square metre is in homes on Marbella's beachfront in Marina Puente Romano complex, reaching €30,000 per square metre. And when the property is good... the sale takes place “off market”, that is, it does not go on sale publicly and takes only between one and three months to sell.

According to the latest idealista report with data from February, the largest year-on-year increases have occurred in Jerez de la Frontera (14.6%), San Cristóbal de la Laguna (12.9%) and Telde (10.3%), while Marbella (€4,526/m2) and the university city of Tenerife (€1,637/m2) are the only places in this study to reach maximum prices.

The high-end residential market in Madrid continues to attract foreign investment, especially American buyers, who consider the region as the “European Miami”, according to Lucas Fox, the real estate agency specialising in luxury housing. According to its data, renovating a home in the capital's 'prime' neighbourhoods can increase its price by more than 70% to over €10,000/m2. Jerónimos (€20,800/m2), Recoletos (€17,300/m2) and Goya (€15,000/m2) stand out the most but La Moraleja (€12,000/m2) and Pozuelo (€11,500/m2) are also noteworthy.

Knight Frank's latest 'Wealth Report 2024' on the luxury market reveals what $1m can buy in the most expensive real estate markets in the world. Prime housing prices remain high in Monaco, Hong Kong and Singapore, where $1m can barely buy 15 to 30 m2 of luxury property. In Spanish destinations, the values change from 96 m2 in Madrid to just 50 m2 in Ibiza.

Buying or selling a home is one of life's milestones, as it requires a major investment and many hopes and dreams are poured into it. However, a great deal of stress is also involved. Preparation is needed for everything to run smoothly and for the transaction to be successful.

Homeownership is losing ground in Spain in favour of renting.

Sixty-five per cent of the properties listed for sale on idealista in the fourth quarter of 2023 were under €150,000, according to a study published by idealista, southern Europe's leading real estate marketplace.

If you've been looking at the property market for some time and want a first or second home in Spain, you should take the plunge this year. Some factors suggest you should buy a property in 2024.

New-build housing prices in Spain will continue to rise in the first part of the year (4.1%), although at a slower rate than in previous quarters, to settle at an average of €2,925/m2, according to Sociedad de Tasación (ST)'s outlook for the residential market.

The gap between demand and supply is a key factor that marked the real estate market in Spain during 2023. This is likely to continue in these first months of the year, just as there is a difference between new and used housing.

In 2023, the Community of Madrid experienced a year of falling sales and rising housing prices and rent.

Foreigners buying homes in Spain between January and June accounted for 21.4% of the total number of transactions, despite a 7.5% drop compared to the same period in 2022, according to statistics from the General Council of Notaries.

Between April and June 2023, house prices rose by 3% compared to the previous quarter and by 1.1% compared to the same period last year, according to Solvia's II Solvia Market View 2023 study. The real estate services firm for individuals explained that after several months of slowing rises, house

The Community of Madrid is one of Europe's most cosmopolitan regions; living there can be a unique and enriching experience.

As it does every year, the General Directorate of the Cadastre has already published which towns and cities will be reviewed next year.

Foreign investment in Spain, without Foreign Securities Holding Entities (ETVE), has fallen by 26.6% in the first six months of 2023 compared to the same period last year, reaching a volume of €11.996 billion, according to the Foreign Investment Register DataInvex of the Secretary of State for Trade