On February 15th, the Spanish Property Registry (Colegio de Registradores de la Propiedad, Bienes Muebles y Mercantiles de España) unveiled the Q4 2023 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.
Essential Insights from the Report:
The complete report you find here below.
1. Homes Sold in the Fourth Quarter of 2023
2. Price Level
2b. Trend: price rises continue to slow down
3. Market Overview Fourth Quarter 2023
3b. Comunidad Valenciana, Andalucia & Balearic Islands
3c. Shortage of Quality Homes for sale
4. Trend towards Custom Build Homes
5. Foreign Demand
5b. Q4-2023 Foreign Demand by Region
5c. Nationalities that bought the most homes in Q4-2023
6. Mortgages
6b. Trend: Cash is still King
7. The Spanish Economy
7a. Inflation
7b. Employment
7c. Company Formations
7d. Insolvency proceedings Q4
8. Market Outlook
1. Homes Sold in the Fourth Quarter of 2023
In the whole of Spain 129.875 homes were sold (Q3 151.983). 9.8% less compared to the same period in 2022. The decrease amounts to 7,3% compared to the third quarter of 2023.
The Comunidad Valenciana is with 20.958 (23.650 in Q3-2023) the second region of Spain with a market share of 16,41% of the total Spanish property market which is exactly the same as in the previous quarter (Q3 16,41%).
Alicante and Valencia are again among the provinces with the most homes sold with 10.652 (Q3-11.990 ) and 7.950 (Q3-8.770) homes sold respectively.
2. Price Level
Compared to the previous quarter of 2023 In Alicante prices rose with 4,8% for new build homes (Q3: 12,8% & Q2: 6,1%) and 0,4% for existing homes (Q3: 6% and Q2: 0,5%). The average price rise in Alicante was 0,5%.
In Valencia prices of new homes decreased with 7,4% (Q3: -10,7%) while existing home prices rose with 4,6% (Q3: 0,4%). The average price rise in Valencia was 2,7%.
Murcia also noted lower prices for new homes with -0,1% (Q3: 0,4% & Q2: 7,5%) and a slight increase of 0,4% for existing homes (Q3: 1,1% & Q2: 1,4%).
Overall home prices in Spain rose in the last three months of the year with 0.5% compared to the third quarter of the year. In the third quarter a price decrease of 0,3% was noted for the whole of Spain.
When compared with the fourth quarter of 2022 average property prices in the whole of Spain rose 1% in 2023.
2b. Trend: price rises continue to slow down
In the previous report we mentioned that a trend of slower rising property prices became visible for the whole of Spain. This trend continues and was also reflected in the numbers the last quarter of the year.
Of the 50 provinces in Spain 29 noted a higher price level in the fourth quarter compared to the previous quarter.
The quarterly price levels are in most areas still on the rise while the annual trend slows down.
Below some of the provinces with higher and lower property prices in the fourth quarter of 2023:
Higher Property Prices (compared to the previous quarter):
Huesca +23.3%
Albacete +10,9%
Lleida +10.7%
Islas Baleares +3,2%
Barcelona +1,2%
Málaga +1.2%
Alicante +0,5%
Madrid +0,2%
Santa Cruz de Tenerife +0.1%
Lower Property Prices (compared to the previous quarter):
Teruel –13,1%
Cáceres -10%
Soria -9,9%
Huelva -6,5%
Granada -2,9%
Castellón -3,2%
3. Market Overview Fourth Quarter 2023:
In our team we notice a continuing stable demand combined with a solid availability of private financing from our clients. Luxury homes in Spain are highly sought after by international investors.
If you have decided to buy a property on Costa Blanca and to enjoy your well-earned money or to put it at work for you: congratulations! A great decision!
The attractive and very affordable life style that Costa Blanca offers is one of the main reasons our clients choose this area. The weather is perfect, although that is only one part of the offer.
In the third and fourth quarters of 2023 the amount of home sales closed by our team was slightly above the level of deals closed in that same period in 2022.
Costa Blanca is located in the Comunidad Valenciana region. With 20.958 home sales in Q3-2023 the Costa Blanca Property market is the second region of Spain with a market share of 16,41% of the total Spanish property market.
Below you find an overview of the most sought after regions, the number of homes sold in the fourth quarter of 2023, the market share in the Spanish property market and the variation compared to the previous quarter:
#1 Andalusia, 26.289 homes sold (Q3-28.164 & Q2-30.698), market share 20.15% (-/- 6,7 % compared to Q3-2023)
#2 Comunidad Valenciana, 20.958 homes sold (Q3-23.650 & Q2: 25.114), market share 16,41 ( -11.4 % compared to Q3-2023)
#3 Cataluña, 20.502 homes sold (Q3-21.613 & Q2-24.210), market share 15,74% (-/- 5.1 % compared to Q3-2023)
#4 Comunidad de Madrid 15.089 homes sold, (Q3-16.437 & Q2-18.895), market share 12,05% (-/- 8,2% compared to Q3-2023.
#5 Canary Islands, 5.081 homes sold (Q3-5.610 & Q2-6.570), market share 4,33% (-/- 9.4% compared to Q3-2023)
#9 Murcia, 4.886 homes sold (Q3-5.414 & Q2-5.195). market share 3,7% (-/- 9,8% compared to Q3-2023)
3b. Comunidad Valenciana, Andalucia & Balearic Islands
In the Comunidad Valenciana region, where Alicante and Costa Blanca are part of, house sales rose with 4% compared to the same period in 2022. A total of 96.652 homes were sold in the last 12 months corresponding to a decrease of 4,2% (2022: 101.702). Murcia, where Costa Calida is shows a price rise of 1,9% compared to last year and 21.563 homes sold (2022: 22.239). Being 3,8% less homes sold than the year before.
Unwavering Foreign Interest
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.
Market Sentiments and Outlook
Despite the overall slowdown, the demand for high-quality luxury properties for sale on Costa Blanca remains unmatched. Our expertise and unique insights into trends like the rising interest in custom-built homes position us as the go-to agency for discerning clients seeking excellent services combined with a luxury and exclusive product.
If you want to know more about the possibilities, contact our team.
3c. Shortage of Quality Homes for sale
By comparison, in Andalusia a substantial decrease in the number of homes sold of 12% was noted whereas the Balearic Islands sold in total 20,3% less homes compared to same period the year before.
For the Balearic Islands it is worth mentioning that the decline seems to be due to a lack of homes available for sale, being it a combination of lack of affordability and shortage of the quality offered. The number of new build homes sold on the Balearic Island dropped with 5,1% (while 2022 showed an increase of 8,7%) and the sale of existing property declined in 2023 with 23,5%.
In our region we notice that the demand for quality homes remains high and clients who initially focused on a luxury villa for sale on Ibiza, or one of the other islands, now also consider Costa Blanca as a possible destination. Compared to Ibiza or Formentera prices of a luxury villa for sale on Costa Blanca can even be considered cheap.
When you scroll the internet you will see there are a lot of villas and apartments offered for sale. However, when we take a closer look at location, building quality and perceived value, the demand remains much higher than the actually available quality homes. Top of the range quality homes with beautiful materials are still not easy to find and often come at a higher price.
4. Trend towards Custom Build Homes
The trend to personalise a home continues. This can be a complete and thorough renovation of an existing apartment or villa or have your custom designed home build.
At this moment there are 3 villas under construction for our clients on Costa Blanca and in March we will start the build of the next new villa for investors from Germany.
Our team specialises since 2013 in completely new build homes and off-plan investments in apartments and villas.
If you want to know more about the possibilities, contact our team.
5. Foreign Demand
Of all homes sold in Spain in the fourth quarter 15,12% was bought by a foreigner. Although 0,32% less than in the previous quarter, the percentage is amongst the highest in history.
On Costa Blanca 44,43% of all homes were sold to a foreigner and on Costa Cálida 26.63%. Both regions show an increase in foreign demand compared to the year 2022.
5b. Q4-2023 Foreign Demand by Region
Comunidad Valenciana 29,39% foreign demand
Alicante 44,43% foreign demand
Murcia 26,63% foreign demand
Canary Islands 26,53% foreign demand
Balearic Islands 35,63% foreign demand
Andalusia 15,12% foreign demand
We firmly believe that the strong demand on the Costa Blanca is based on a combination of various important factors. Our clients often mention the excellent location in terms of climate and transportation with the rest of Europe, affordable living standard and also specialist medical facilities that are available on Costa Blanca. All these services are available in your own language.
Based on our sales closed so far this year and the conversations with clients we expect demand to be stable on the Costa Blanca as clients plan to maintain their investments.
5c. Nationalities that bought the most homes in Q4-2023:
6. Mortgages
In Spain a total of 129.875 properties were sold in the fourth quarter of 2023 and 89.917 (Q3: 90.858) were financed with a mortgage, that is 69,2% (Q3: 64,8%). The amount of mortgages granted was 1% less than in the previous quarter.
In Spain the average mortgage granted is 143.706,- euros. Of all new mortgages granted 56.02% opted for a fixed interest rate.
The average fixed interest rate in the fourth quarter of 2023 was 3,68% (the lowest historic rates were reached in 2022 with 2,24%)
The average repayment term is 24,17 years with a monthly instalment of 733,50 euros. On average mortgage payments require 33,4% of the monthly income, with exceptionally high efforts of 53,3% of the monthly income on the Balearic Islands and 40% in Madrid.
6b. Trend: Cash is still King
The percentage of property investors in Spain that pay the purchase price in full without the need of financing is considerable. One third of all properties sold are paid in cash. However the rise in mortgages taken to buy a home has increased compared to the third quarter, this may be a sign that investors believe that the bank interest rates are not likely to decrease further in the near future while the market demands investors to make a decision and close a deal on the property of their choice.
In Comunidad Valenciana 10.164 homes were financed with a mortgage in the fourth quarter of 2023. That is 48,5% of the 20.958 homes sold.
In Murcia 2.819 mortgages were granted for the purchase of a home. That is 57.7% of the 4.886 homes sold.
Both Costa Blanca and Costa Calida show that more homes are paid cash than the national average.
7. The Spanish Economy
7a. Inflation:
The Spanish economy is performing well, even in the face of stabilising interest rates, rather than the marketwide expected lower interest rates, the inflation in Spain was in December with 3,1% just below the European average of 3.4%.
7b. Employment:
According to the Spanish National Statistics Institute (INE), new job creation has increased in 2023 by 3.8%. In the whole of 2023 783.000 new jobs were created in Spain. Of those new jobs 91% were in the private sector.
7c. Company Formations:
Entrepreneurs love Spain! In 2023 108.091 new companies were created. 9,1% more than in 2022!
In December alone in the Comunidad Valenciana 947 new companies were created and in Murcia 222.
By comparison, in the year 2022 in the whole of Spain 100.197 new companies were created.
The vast majority of new business, 98,50%, are created as Limited Liability Companies.
7d. Insolvency proceedings Q4
The number of limited liability companies in serious financial difficulties that filed for insolvency proceedings in Spain in the fourth quarter of 2023 was 5.783, a rise of 4.3% compared to the same quarter of 2022. Compared to the third quarter a rise of 42,6% was noted. 
8. Market Outlook
As a team we have a strong connection with the real estate market, we have been in the business since 2013 and speak with buyers and sellers literally every day of the week. Our aim is to stay one step ahead of the game. We love to deliver! This we do through our extensive network where we deal directly with the best property developers on Costa Blanca, top quality construction companies, international investment funds, Spanish banks and real estate portfolio managers in Spain and abroad.
Our vision on the luxury property market in Spain for the medium long term is unchanged for Q4 compared to Q3:
We believe that investors and entrepreneurs alike remain positive about Costa Blanca and Costa Cálida. The number of properties sold is considerable and the creation of new businesses is still on the rise. The fact that many more properties than the national average are paid for in cash, without mortgage financing, is a strong sign of a solid property market that investors are confident to invest in.
All of these indicators confirm a solid sentiment with a strong indicator of the regions´ attractiveness and economic strength.
At nardia real estate agency we are confident for the medium long term future!
How can we help you?
The information in this report is freely available on the website of the Spanish Property Registry, National Institute for Statistics (INE), the Spanish Company Registry, EuroStat and possibly other sources.
This Housing Market Report for the Spanish Property Market for the Fourth Quarter of 2023 has been written by Tom Bruijnzeel. He is the author of this informative Market Report about the Spanish Real Estate Market on Costa Blanca and more general the Property Market in Spain and other articles and market reports on our website.
Tom has a master degree in Law from the University of Rotterdam (the Netherlands), holds a bachelor degree in Business and Economics and is fluent in Spanish, French, English and Dutch with full business proficiency in German. In 2013 he started nardia real estate agency in Altea on the Costa Blanca in Spain. The team specialises in the sale of Luxury Villas on Costa Blanca and also in Luxury Apartments for sale on Costa Blanca.
The website www.nardia.es is available to all who are thinking of investing in a property in Spain or already own a property and have questions about property tax in Spain, the correct registration of a property in Spain or the taxes to pay when you sell a house in Spain.
If you want to sell your property on Costa Blanca let us know: I want to sell my property on Costa Blanca.
You can connect with Tom via Linkedin: linkedin.com/in/tombruijnzeel
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