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Date Published: 15/12/2023

How will house prices in Spain behave in 2024?

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So far this year, property prices across Spain have increased by 4.5%

How will house prices in Spain behave in 2024?

Property prices continued to increase in the second half of 2023 and this, coupled with ceaseless Euribor rate hikes, which have deeply affected mortgage repayments, has led to deep uncertainty about what will happen to the cost of real estate in Spain next year.

It seems that Spain is still the destination of choice for many foreign retirees and second-home owners, desperate to escape the harsh winters and escalating cost of living in the UK and other countries.

Because of this, housing demand continues at remarkably high figures despite rising property prices and interest rates throughout the year.

In fact, the 4.5% year-on-year increase in the Price Index (IPV) confirms that demand continues to be very strong, and that the imbalance between high demand and low supply has pushed property values upwards.

So, as we prepare to bid farewell to another year, what can we expect from the property market in Spain in 2024?

What will house prices do in 2024?

The bad news for investors is that property prices aren’t expected to experience any significant drops in 2024, at least in the opening months, as demand continues to outstrip availability, a situation that’s unlikely to resolve itself in the foreseeable future.

With this in mind, the experts at Fotocasa predict that the cost of homes will actually increase by close to 5% at the beginning of the new year.

On the other hand, as the months go by, others believe that this unprecedented demand for property in Spain could exhaust itself, which of course would help to moderate prices.

Given the huge price tags on properties throughout 2023, it might be hard to believe but housing costs actually did moderate somewhat this year following a massive pre-pandemic surge when the markets began to open up again.

As the country continues to normalise, assuming Spain can avoid another financial crisis or Covid outbreak, all evidence points to a 2024 housing market that will begin on the high side but stabilise throughout the next 12 months.

Also of interest: The Seven deadly sins of foreign property buyers in Spain... and how to avoid them

Image: Pixabay

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