Spain’s property market defied global trends in 2024, posting a remarkable 10% sales growth in the first nine months and surpassing 500,000 transactions. A standout third quarter saw a 16% year-on-year increase, with Malaga Province leading the charge at 18% growth. While neighbouring countries like France and Germany struggled with declining markets, Spain’s resilience—bolstered by foreign buyers, local demand, and a strong economy—cemented its position as one of Europe’s top-performing real estate markets.
- Sales Growth in 2024
- Spain’s property market recorded a 10% increase in sales in the first nine months, surpassing 500,000 transactions.
- The third quarter saw a 16% year-on-year growth, reflecting strong demand across the country.
- Malaga Province experienced 18% growth in Q3, an acceleration from the 6% increase in the first nine months.
- Comparison with Neighbouring Countries
- While countries like France and Germany saw declines in housing markets, Spain remained resilient, marking one of its best years on record.
- Foreign Buyers’ Impact
- Foreign non-resident buyers (primarily purchasing second homes or investments) drove a significant portion of the demand, growing by 20% in Q3.
- Malaga outperformed other regions, with Alicante only seeing a 1% increase in foreign non-resident purchases during the same period.
- Shift in Buyer Demographics
- A surge in buyers from Eastern Europe, particularly Poland, contributed to the market’s growth.
- Local Spanish buyers also played a critical role, with local demand up 20%, highlighting a balanced market.
- Economic and Political Drivers
- Spain’s strong economic performance in 2024, coupled with robust tourism, supported the housing market.
- Political concerns in countries like the UK led to increased migration and property purchases in Spain.
- Golden Visa Influence
- The phasing out of Spain’s Golden Visa scheme by early 2025 created a rush in Q4, but its impact on overall figures was limited.
- Prices and Market Elasticity
- Average property prices increased by 6% nationally in the first nine months, with Malaga seeing a 10% rise.
- Experts noted that the market remains price-sensitive, with buyers cautious about overvalued properties.
- Market Stability
- Unlike the 2007 bubble, the current market growth is driven by sustainable demand and strict lending criteria, reducing risks of a speculative bubble.
- Challenges in Rental Markets
- High rents and limited affordability continue to pressure the rental market, pushing some individuals into homeownership.
- Outlook for 2025
- While the market shows no immediate signs of overheating, experts suggest moderate growth in line with inflation to maintain stability.
