In 2023, the real estate landscape experienced significant shifts, as highlighted by recent statistics. Despite a notable 11.2% annual decrease in home sales, the market saw a surprising 1.5% increase in prices. These numbers underscore a dynamic year for both buyers and sellers, characterized by fluctuating demand and evolving market conditions, official figures from Spain’s notaries show.
In total, 640,451 property transactions have been closed, the fourth-best result in the series since 2007. So turns out that those predicting a cooling of the market in 2023 as opposed to a 20%+ crash like some others warned against, were right.
Key insights from 2023:
Sales Decline: The year witnessed a marked cooling in the number of home sales, with declines persisting throughout the first three quarters before showing signs of moderation in the final quarter.
Regional Variances: While some regions experienced modest growth, such as Asturias with a 1.4% increase in home sales, others faced significant declines, notably the Balearic Islands (-19.9%), Canary Islands (-16.8%), and Madrid (-16.2%).
Price Dynamics: Despite the overall decrease in sales volume, certain regions saw a notable uptick in the price per square meter, including Navarra (13.7%), Castilla-La Mancha (8.3%), and La Rioja (7.3%).
Mortgage Market: New loans for home purchases declined by 21.3% annually, with an average loan amount of €148,592, representing a 3.1% decrease compared to the previous year.
Business Formation: The year also saw an 8.9% annual increase in the establishment of new companies, indicating continued entrepreneurial activity within the real estate sector.
December Figures: Closing out the year, December saw a 5.2% year-on-year decrease in home sales, accompanied by a 5.8% increase in average prices. Additionally, new mortgage loans for home purchases retreated by 8.1%.
Regional 2023 variations:
🔹 Andalucia: x126,430 property sales, -12.4% year-on-year
🔹 Valencia Region: x104,831 property sales, -7.9%
🔹 Balearics: x15,347 property sales, -19.9%
🔹 Cataluña: x96.483 property sales, -12.8%
🔹 Murcia Region: x24.147 property sales, -5.2%
Property Prices:
🔹 Andalucia: +3.3% year-on-year
🔹 Valencia Region: +4.9%
🔹 Balearics: -0.4%
🔹 Cataluña: +1.8%
🔹 Murcia Region: +2.0%
