Spanish Housing Market Report Q1-2024: 16,6% More Homes Sold | Prices are on the Rise
2 Jun 2024
Quick Market Overview:
Spain-wide Home Sales: Increase of 16.6%
Costa Blanca Property Transactions: Increase of 20.2 %
Mortgages: 71.9% of homes financed
Price Trends: Nationwide increase of 1,9%;
Price Trends: Costa Blanca price rise 6,5%
International Buyers: Account for 14,21% of purchases in Spain, with a notable 43.03% in Costa Blanca
Top 4 international buyers in Spain: British, Germans, Moroccans, French (see all 18 nationalities below)
Essential Insights from the Report:
Sales Trends: A big jump in nationwide sales with a spotlight on Comunidad Valenciana’s resilience
Price Movements: Regional price analysis revealing a nuanced picture of the market
Mortgages: Allow New buyers on the already crowded market place
Demand Dynamics: High demand for quality homes and increased demand buy-to-rent
International Appeal: A deep dive into foreign buyer trends, underscoring Costa Blanca’s global attraction
On May the 23rd, the Spanish Property Registry (Colegio de Registradores de la Propiedad, Bienes Muebles y Mercantiles de España) released the Q1 2024 property market insights.
At nardia real estate agency in Altea, our commitment is to empower you with fact-based insights, enabling informed decisions. Discover our comprehensive market analysis below.
The complete report you find here below.
In This Market Report:
Homes Sold in the First Quarter of 2024
Price Fluctuations and Trends
Trend break: prices gradually on the rise
Market Overview First Quarter 2024
Comunidad Valenciana & Costa Cálida
Market Sentiments
Trend: Buy-to-Rent
Your Investment Partner in Costa Blanca
Foreign Demand
Q1-2024 Foreign Demand by Region
Nationalities that bought the most homes in Q1-2024
Mortgages
Mortgage and monthly income
Trend: Mortages more attractive?
The Spanish Economy
Inflation Employment Company Formations Insolvency proceedings Q1
Note on the Housing Market: Is a Crisis coming?
Market Outlook
A 10-year Outlook on the Spanish Property Market: 2024-2034
1. Homes Sold in the First Quarter of 2024
In Q1 2024, the overall property market in Spain jumped with 16,6% with 151.476 homes sold (129,875 in Q4-2024) compared to the last quarter of 2024. Compared to the previous year ´the jump´ still marks a decrease of 10,8% year-over-year.
The Comunidad Valenciana is with 25.094 (20.958 in Q4-2023 and 23.650 in Q3-2024) the second region of Spain with a market share of 16,53% of the total Spanish property market which is slightly above the market share in the previous 2 quarters (both Q4-2024 and Q3-2024 16,41%).
Costa Blanca, demonstrated resilience, echoing it´s appeal to both domestic and international buyers with an annual increase of 13,8% in the sale of new build homes and a drop of 8,4% in existing homes sold.
Alicante and Valencia are again among the provinces with the most homes sold with 12.807 (Q4 10.652 and Q3-11.990) and 9.300 (Q4 7.950 and Q3-8.770) homes sold respectively.
2. Price Fluctuations and Trends
Compared to the last quarter of 2023 in Alicante average prices decreased with a massive 13,9% for new build homes (Q4-2023 +4,8% / Q3-2023 +12,8% / Q2-2023 +6,1%) and increased with 0,5% for existing homes (Q4-2023 0.4% / Q3-2023 6% / Q2-2023 0,5%).
On an annual basis, comparing the first quarter of 2024 with the first 3 months of 2023, we see a completely different picture:
Average prices in Alicante rose in the past 12 months with a solid 12,5% for new build homes and for existing homes with 3,9%.
In Valencia prices of new homes increased with 8 % (Q4-2023 -7,4% and Q3-2023 -10,7%).
Existing home prices rose with 0,3% (Q4-2023 4,6% / Q3-2023 0,4%).
The average price rise in Valencia was 1,5% in the first quarter of the year compared to 2,7% in the last quarter of 2023.
On an annual basis prices in Valencia rose on average with 3,7%. Prices for new build homes in Valencia decreased year-on-year with 5,5% while existing home prices rose with 4,8%.
Murcia also noted lower prices both for new homes with a decrease of 10,6% (Q4-2023 -0,1% / Q3-2023: +0,4% / Q2-2023 +7,5%) as for existing homes with a decrease of 3,1% for existing homes (Q4-2023 +0,4% / Q3-2023 : +1,1% & Q2: +1,4%).
On an annual basis Murcia prices for new build homes increased with 9,6% while existing home prices were 1,2% less.
Overall home prices in Spain rose in the first three months of the year with 0.8% compared to 0.5% in the fourth quarter. In the third quarter a price decrease of 0,3% was noted for the whole of Spain.
When compared with the first quarter of 2023, year-on-year the average property prices in the whole of Spain rose by 1,9% with a notable 4,1% for new build homes.
3. Trend break: prices gradually on the rise
In the previous report we mentioned that a trend of slower rising property prices became visible for the whole of Spain. This trend seems to turn around in 2024 with slightly higher price rises than in the previous trimester.
Taking a more detailed look at the data, with hindsight, you may say that this trend started on Costa Blanca already in 2023.
Average price rise per Quarter since Q4-2022 in Spain:
Average price rise per Quarter since Q4-2022 on Costa Blanca:
Above: Year-on-Year Percentage of Price Rise per Quarter (compared to the same quarter the year before).
© Images: nardia real estate agency. Data source: Registradores.
Of the 50 provinces in Spain 29 noted higher average prices for existing homes in the first quarter of 2024 compared to the previous quarter. Whereas for new build homes higher prices were recorded in 24 provinces.
Below some of the provinces with higher and lower property prices in the first quarter of 2024:
Higher Property Prices (compared to the previous quarter):
Cáceres +24,8% (previous quarter -10%)
Cordoba +32,7%
Soria +14,5% (previous quarter -9,9%)
Madrid +1.9%
Santa Cruz de Tenerife +0.6%
Lower Property Prices (compared to the previous quarter):
Huesca -9,2%
Segovia -8,8%
La Rioja -6,7%
Salamance -6,6%
Illes Baleares -4,9%
4. Market Overview First Quarter 2024:
So far 2024 has showed a strong demand for quality villas and apartments. Luxury homes in Spain continue to be highly sought after by international investors while the latest official figures show an increased national demand too.
The rise in national demand was also forecasted by economists who expected property renters to do ´whatever it takes´ do enter the property market as owners.
Property prices are gradually increasing and we notice that buyers in exchange expect superb comfort, a near perfect location or fantastic view, top of the range finishing’s including luxurious kitchens and relatively uncommon features as floor heating or a heated swimming pool.
In the first quarter of 2024 the number of homes sold by our team is almost 25% higher than sales in the same period of 2023. Based on our conversations with clients and the number of appointments already booked later this year, 2024 is on it´s way to become a record year with lots of happy clients and investors!
Costa Blanca is located in the Comunidad Valenciana region. With 25.094 homes sold (Q4-2023 20.958) this is the second region of Spain with a market share of 16.53% of the total Spanish property market (Q4-2023 16,41%).
Below you find an overview of the most sought after regions, the number of homes sold in the first quarter of 2024, the market share in the Spanish property market and the variation compared to the previous quarter:
#1 Andalusia, 28.390 homes sold, 8% more than the previous quarter (Q4-2023 26.289 / Q3-2023 28.164 & Q2-2023 30.698), market share 19,8%
#2 Comunidad Valenciana, 25.094 homes sold, 19,7% more than the previous quarter (Q4-2023 20.958 / Q3-2023 23.650 & Q2-2023 25.114), market share 16.53%
#3 Cataluña, 24.238 homes sold, 18,2% more than the previous quarter (Q4-2023 20.502 / Q3-2023 21.613 / Q2-2023 24.210), market share 15,79%
#4 Comunidad de Madrid, 18.465 homes sold, 22,4% more than the previous quarter (Q4-2023 15.089 / Q3-2023-16.437 / Q2-18.895), market share 12,01%
#5 Canary Islands, 6.163 homes sold. 21,3% more than the previous quarter, (Q4-2023 5.081 / Q3-2023 5.610 / Q2-2023 6.570), market share 4,08%
#9 Murcia, 5.902 homes sold, 20,8% more than the previous quarter (Q4-2023 4.886 / Q3-5.414 / Q2-5.195). Market share 3,73%
5. Comunidad Valenciana & Costa Cálida
In theComunidad Valenciana region, where Alicanteand Costa Blanca are part of, house sales decreased with 6,6% compared to the same period in 2023. A total of 94.816 homes were sold in the last 12 months. (Q1-2023: 96.652 and Q1-2022: 101.702). In that same 12-month period price levels in the region rose with 5,4% on average compared to a year before with a small decrease of 0,2% compared to the previous quarter.
Compared to the previous quarter however an increase in homes sold of 19,7% was noted with 25.094 homes sold in the first quarter of 2024.
Alicante property prices rose by 3,9% for existing homes and 12,3% for new build homes.
12.807 homes were sold in Alicante in the first 3 months of the year. 20,2% more than in the last quarter of 2023.
In Murcia, where Costa Cálida is, an overall price rise of 1,2% compared to last year was noted (1,9% in 2023). A more detailed look shows that only new build property sold for higher prices with a 9,6% increase while existing home sold for 1,2% less.
On Costa Cálida in the first quarter of 2024 21.397 were homes sold (Q1-2023 21.563 / Q1-2022: 22.239). Being 0.76% less homes sold than the year before.*
(* the official report from the property registry mentions a decrease in sale of 5,4%. This seems to be an error based on the number of properties sold).
Compared to the last quarter of 2023 Murcia sold 20,8% more homes with a total of 5.902 properties sold in the first quarter.
6. Market Sentiments
Our expertise and unique insights into market trends position us as the go-to agency for serious clients who are looking for a problem-free investment.
Costa Blanca continues to be a magnet for international property buyers in Spain, making up nearly half of the market activity in this region. Our analysis provides insight into the preferences and trends among international clientele, highlighting the top nationalities investing in Spanish homes further below.
7. Trend: Buy-to-Rent
On top of the plans to acquire a second home to enjoy the Mediterranean climate, we speak with more and more people who are seriously thinking of a property investment in Spain to rent out. Either for short term holiday rentals (that require a rental license) or as a long term rental property (that does currently not require any licence), both options offer a fantastic potential return on investment.
Clearly not everyone wants to buy a property in Spain. Many may be thinking of renting first, or may not be interested in buying at all.
We are extremely confident that a rental property in Spain is a good investment as there is an enormous shortage of rental properties. Let alone good quality homes on attractive locations.
Obvious but not to be overlooked: in the more sought after areas on the coast the pool of potential renters is large and full of people with a stable and comfortable pension or remote-worker income that can be ideal renters for your property.
Important:
The pressure on the housing market is likely to lead to stricter rules and regulations for holiday rentals, such as AirBnB properties that host different people every week.
Although the expected restrictions will not make property more affordable, we expect that in the next 12 to 18 months, certain areas will stop issuing new licences to rent out holiday homes.
8. Your Investment Partner in Costa Blanca
At nardia real estate agency, we’re more than just estate agents; we’re your partners in navigating the property market. Whether you’re seriously thinking of an investment opportunity or have decided to finally build that custom made villa you´ve dreamed of.
We are here to help. We know the market and understand the rules of the game!
How can we help you?
9. Foreign Demand
Of all 151.476 homes sold in Spain in the first quarter 14,21% was bought by a foreign investor (15,12% previous quarter). However 0,91% less than in the previous quarter, the percentage is amongst the highest in history. The highest percentage was noted in the third quarter of 2023 with 15,44%.
Although the percentage of foreign buyers as part of all sales has decreased slightly, the absolute number of homes acquired by foreigners has increased once more to more than 21.500 homes in the first quarter of 2024.
On Costa Blanca 43,03% (previous quarter 44,43%) of all homes were sold to a foreigner and on Costa Cálida 23,36% (previous quarter 26.63%).
10. Q1-2024 Foreign Demand by Region
Comunidad Valenciana 28,79% foreign demand (29,39% Q4)
Alicante43.03% foreign demand (44,43% Q4)
Murcia 23.36% foreign demand (26,63% Q4)
Canary Islands 26.01% foreign demand (26,53% Q4)
Balearic Islands 31,72% foreign demand (35,63% Q4)
Andalusia 13,83% foreign demand (15,12% Q4)
At nardia real estate agency we firmly believe that the strong demand for quality homes on the Costa Blanca is based on a combination of various important factors.
ur clients often mention the location in terms of the mild climate and excellent transportation with the rest of Europe, a very affordable living standard and also specialist medical facilities that are available on Costa Blanca. There are various private hospitals with very good international staff, including doctors and surgeons. All these services are available in your own language.
Based on our sales closed in the first 5 months of 2024 and the conversations we have with clients we are confident demand will be stable on the Costa Blanca for the foreseeable future. We expect our clients to maintain their plans to become owners of a holiday home and expand their investments in rental properties.
11. Nationalities that bought the most homes in Q1-2024:
British 9,13% | 1.950 homes
Germans 6.77% | 1.446 homes
Moroccans 6.06% | 1.294 homes
French 5,94% | 1.268 homes
Belgian 5,52% | 1.178 homes
Dutch 5,3% | 1.131 homes
Italians 5__,__26% | 1.124 homes
Romanians 4,87% | 1.041 homes
Polish 3,72% | * homes sold unavailable
Ukrainians 3,06% | *
Chinese 2,81% | *
Swedish 2,8% | *
Russians 2,67% | *
Irish 1,78% | *
United States 1,54% | *
Argentina 1,19% | *
Bulgaria 1,13% | *
Czech Republic 1,01%
12. Mortgages
In Spain a total of 151.476 **continue reading on page 2**
