The Spanish real estate market remains robust despite global uncertainties in 2023, attracting investors from around the world. Living Sitges Real Estate presents the report on Spanish Real Estate Market Outlook and Predictions for 2024.
Buyer Demographic Shift: Buyer demographics have changed since Brexit, the Covid-19 pandemic, and the war in Ukraine. Fewer Britons are investing, but there is an increase in Swedish, Polish, and American buyers. This shift has helped mitigate market volatility. There is also an observed increase in interest from the Czech Republic and Finland, possibly due to their proximity to Ukraine.
Property Prices in Spain: Despite circumstances, housing prices remain stable, driven by a persistent shortage of supply. Unprecedented buying activity and accumulated demand post-pandemic have contributed to this shortage. Additionally, rental demand has increased with the growing trend of remote work. It is worth noting that Sitges starts 2024 among the top 5 most expensive towns in Catalonia for rent, with an average monthly rental price of 1359 euros.
Legislative Changes and Positivity: In January 2023, Spain introduced the digital nomad visa, and discussions are ongoing for better regulation of real estate agencies. The Spanish and French governments even advocate for relaxing the Brexit 90/180 rule within the European Union, allowing Britons to stay longer in Spain without a visa. Spain ranked second in the annual Internations survey of expatriate favorite places in 2023.
Price Trends in 2023: The national average property price increased by 3.6% in 2023. Cantabria, Andalusia, and the Canary Islands experienced even higher growth, around 4.5%. On the other hand, Murcia recorded the lowest increase, only 1.4% since 2022.
Outlook for 2024: British demand is expected to rise in 2024 if the Spanish government relaxes the Brexit 90/180 rule. Furthermore, if the API law to regulate the real estate agent market succeeds and is implemented nationwide, it will provide greater security for buyers.
In summary, the Spanish real estate market presents a solid outlook for the future, with encouraging signs and positive changes that could influence trends in 2024.
Article by Living Sitges Real Estate
