National property market overview

According to the latest data from Spain's Notaries for February 2024, property sales have increased by 10.3% year-over-year, accompanied by a 15.3% rise in mortgage issuances. Property prices across the country have also seen a modest increase of 3.5%.

Regional property market analysis

Andalucia has experienced one of the most substantial growths, with property sales climbing by 13.4% and prices by 12.3%, reaching €1,507 per square meter.

Valencia Region reports a 10.1% increase in property sales, with prices rising by 8.2% to €1,401 per square meter.
 

Murcia stands out with a 21.5% surge in sales and a 7.9% increase in property prices, which now average €1,224 per square meter.

However, not all regions are experiencing growth. The Balearic Islands saw a decline in sales by 5.2%, despite a significant price surge of 26.2% to €3,556 per square meter. While the Canary Islands also experienced a dip in sales by 7.5%, with prices slightly decreasing by 0.6% to €1,820 per square meter.

Spanish government contemplate scrapping the Spanish Golden Visa

 
The Spanish government is contemplating the termination of the so-called Spanish Golden Visa program, introduced in 2013, which allows foreign investors to gain residency through substantial real estate investments. This consideration arises from concerns over housing affordability for locals, amidst a recent surge in visa applications. The Minister of Housing & Urban Planning, Isabel Rodríguez, cited a dramatic increase in visas granted over the past few years, with a record 3,273 visas in 2023 alone. Marbella, a hot spot for these investments, saw 7.1% of its 2023 sales attributed to Golden Visa acquisitions, predominantly affecting the €500k+ market. The potential policy shift reflects broader efforts to ensure access to decent and affordable housing for all.

What does this mean for the property industry? Not much, according to Alfredo Bloy-Dawson, a market expert based on the Costa del Sol, “in the overall scheme of things it doesn't mean much, but these changes will affect some areas such as Marbella, where properties are often sold to wealthy Russians, Ukranians, Brits and Americans.” 

Howdy Americans! 

Speaking of Americans… Interest from U.S. buyers in Spanish real estate has notably increased, according to Estate Agents in and around the Costa Del Sol. A recent Monmouth University Polling Institute survey indicates that 34% of Americans are considering relocating internationally, up from 10% five decades ago, with the highest interest among those under 35 years. This demographic shift may explain the heightened American presence in Spain and suggests its only set to increase.

Property sales to international buyers surged in 2023

Spanish developer AEDAS Homes reports a 13% surge in new home sales to international buyers in 2023, notably on the Costa del Sol, where 9 out of 10 new home reservations involve international purchasers. Among buyers in this region, 89.3% are international, with Europeans comprising 84.2% and the rest from various other regions. In terms of specific countries, Polish buyers lead at 20.9%, followed by Dutch (12.8%), and Czech (8.7%). The typical foreign buyer on the Costa del Sol is a couple with an average age of 55, purchasing an apartment with a usable area of 105.9 m² and a terrace/garden of 60.8 m². The primary motivations for buying are holiday homes (79.4%), investment (13.3%), and primary residence/relocation (7.3%). This trend underscores the region's appeal to international buyers seeking diverse property options for various purposes.

Alicante more popular than ever with holidaymakers and expats

Alicante-Elche airport continues its record-breaking streak in 2024, achieving its highest-ever passenger numbers for March. Aena, the airport owner, reported 1.2 million travellers last month, marking a remarkable 21.3% increase from the previous year and a staggering 27.2% surge compared to pre-pandemic levels in 2019. The first quarter of 2024 saw 3.2 million passengers, up by 22.7% year-on-year. Notably, the airport operated 20,729 flights between January and March, an 18.4% increase over the same period last year. International travelers accounted for the bulk of March's passengers, with over a million arrivals, prominently from the United Kingdom, totalling 437,414 visitors. The consistent growth highlights the consistent and growing popularity of this part of Alicante province, making it a great place to consider property investment. 

Great news for Norwegians looking to buy property in Spain!

Norwegian Airlines is planning to expand its network by establishing a new base in Las Palmas, in the Canary Islands, enhancing connections between Norway and one of  Europe's premier holiday destinations. Set to launch in October 2024, the move follows the airline's record profit of €2.2 billion Krona in 2023.

Balearic Parliament approves regulation of the Balearic property market 

The Real Estate Agents Association in the Balearic Islands and ABINI, a real estate alliance, are thrilled about a new law passed by the Balearic Parliament recently. This law, linked to Decree Law 6/2023, is a big step forward in tackling housing issues in the Balearic Islands, according to insiders. This law is the result of teamwork between various groups and has the support of 45 deputies in the Balearic Parliament. It's a big deal because it brings order and professionalism to the real estate sector by making it mandatory for agents to register and follow certain rules.  The aim is to make sure that real estate agents have the right qualifications, provide clear information, and follow the rules. This aims to make things safer and fairer for everyone involved in property transactions, especially for you, the buyer or seller. Illegal activities will face consequences, making the market more transparent and trustworthy. 

Latest stats from the Surveyor’s Association suggest confidence continues to grow in the Spanish property market 

Sociedad de Tasación (the Spanish Surveyor’s Association) released its latest Real Estate Sector Trends Report this month, analysing housing prices and market performance up to March 2024. The report signals improved prospects for the Spanish property market compared to the previous quarter, buoyed by expectations of potential monetary policy relaxation by the European Central Bank.

Key findings include a rebound in the Real Estate Confidence Index to 49.1 points, breaking a six-quarter decline. Optimism surged in 15 of 17 autonomous regions, notably in Navarre, Murcia, Asturias, and Madrid. Housing affordability also improved by 2.7%, reaching 75 out of 100 points. The average housing price hit €1,868/m² in March 2024, marking a 3.5% year-on-year increase. Growth rates remained stable, with forecasts projecting €1,883/m² by June 2024. Provinces such as Malaga, the Balearic Islands, Cadiz, and Tenerife saw significant year-on-year price hikes. Construction costs continued to rise, reaching €1,270/m² in Q1 2024, a 7.4% increase from the previous year.

The Spanish property market appears set for continued growth, with regional disparities and legislative changes introducing both opportunities and challenges. Property investors should monitor these developments closely as they plan their next move in this fast-moving market environment.