In the results of the 17th edition of the UCI and SIRA Real Estate Barometer, titled ‘The Sentiment of Real Estate Professionals,’ significant insights into the Spanish property market have emerged.
Optimism in the Real Estate Sector
Regarding the outlook for the real estate sector, 49% of surveyed real estate agents in Spain perceive an increase or stabilization in the number of selling clients, while the remaining 51% believe this figure has decreased. However, nearly 60% anticipate an improvement in the situation over the next quarter.
During the third quarter of the year, only 46% of real estate agents in Spain report increased or stable property transactions in their agencies, indicating a potential downward trend in closing deals. Despite this, 72% believe that property prices have remained steady. Additionally, 49% anticipate prices to stay the same or increase, partly due to the decline in transaction volume, while four out of ten predict a decrease of 5% to 10% in the coming months.
The marginal declines in the Euribor appear to bolster professional optimism, with an average of 6.5% expressing a more positive outlook for the sector’s evolution. Employment prospects also remain stable, with 81% noting growth or maintenance in their agency’s workforce. Furthermore, 87% believe this trend will persist in the next quarter.
Regional Variances and Professionalization
Despite a marginal dip of one percentage point from 2021, real estate agents in Spain continue to dominate second-hand home transactions, commanding an impressive 63% market share – one of the highest levels in history.
The data underscore the increasing professionalization of the real estate sector, particularly pronounced in Galicia, where real estate agents lead with a commanding 76%. Similarly, Castilla-La Mancha and Murcia follow closely with 73%. In contrast, Extremadura (49%), La Rioja (55%), and Navarra (57%) lag in professional market presence, with private transactions still holding substantial shares.
Average Property Visits Before Transaction
The Barometer also scrutinized the average number of property visits required for a successful sale or rental. On average, a property receives around 11 visits before finding a buyer, whereas a rental property needs only four visits to secure a tenant.
Balearic Islands tops the list with an average of 17 visits before a property acquisition, followed by Catalonia (14), and the Community of Madrid, Community Valencia, and Castilla-La Mancha, each with an average of 12 visits. In contrast, Murcia, Navarra, and the Basque Country require only six visits on average.
Concerning rentals, Castilla y León records the highest average visits at eight, while regions under higher demand pressure like Catalonia and the Community of Madrid receive around five. Andalusia, with four visits, and the Community Valenciana, with merely three, demonstrate lower visit rates before finalizing a rental transaction.
Shifts in Financed Real Estate Transactions
A notable revelation from the Barometer is the decline in the proportion of financed property transactions, dropping to approximately 43.5% according to data from the General Council of Notaries. Despite this, 63% of surveyed real estate agents in Spain assert that six out of ten clients still require financing to close property deals.
Baleares stands out as the region with the least reliance on financing, with four out of ten buyers not needing financial assistance. Conversely, Galicia records an average of nine out of ten buyers requiring financing.
Approximately 84% of real estate agents in Spain play a role in facilitating property financing, with 48% acting merely as intermediaries connecting clients with financial institutions. The remaining 14% handle transactions in-house, while 22% collaborate with specialized brokers or Real Estate Credit Intermediaries (ICI).
Sources: UCI, General Council of Notaries
