Market Update: Spain’s real estate market defies global economic concerns, boasting the Eurozone’s highest growth forecast at 2.2%-2.4% by 2023, according to pisos.com. Despite a slowdown in transactions and mortgages, substantial price drops have not materialized, attributing the market’s resilience to an ongoing housing supply shortage.
Ferran Font, Director of Studies at pisos.com, underscores the scarcity of available properties, driven by disruptions in construction due to geopolitical challenges. He commends the sector’s tech adaptation for efficient production. Font anticipates a moderate 1%-2% increase in property prices in 2024, with stability in primary markets and potential declines in secondary locations.
While acknowledging the impact of European policy on mortgages, Font predicts a further decline in 2024. The recently enacted housing law curbing rent increases has, however, discouraged rental supply and investor interest, leading to projected flat or slightly increased rental prices in 2024.
Key Takeaways:
Resilient Spanish Real Estate: Despite economic challenges globally, Spain defies predictions and shows strong growth, with a forecasted GDP between 2.2% and 2.4% by the end of 2023.
Housing Supply Shortage: The main challenge in the real estate market is the lack of housing supply, impacting both sales and rentals.
Moderate Price Increases: Property prices are expected to experience a moderate increase of 1%-2% in 2024, with stability in primary markets and potential declines in secondary locations.
Mortgage Challenges: Policy changes, including European restrictions, have led to a decline in mortgage approvals, with Font predicting a further decrease in 2024.
Rental Regulation Impact: The new housing law implemented in May has controlled rent increases but has led to a decrease in rental supply and investor interest, with a predicted flat or slightly increased rental prices in 2024.
Read the full article in Spanish in ObservatorioInmobiliario.com
