Introduction:

In late 2022, concerns loomed over the housing market’s performance, with expectations of declining home sales and prices in 2023. However, while sales in Spain did decline, the drop was less severe than anticipated, accompanied by a continued rise in housing prices. Here’s a closer look at the statistics and trends driving the real estate market in 2023 and projections for 2024.

Key Points:

  1. Sales Decline: Property transactions in 2023 totaled approximately 640,000, marking an 11.3% decrease from 2022. Notably, while new home sales dropped by 6.5%, the decline in used home sales was nearly 13.5%, indicating a significant adjustment in the secondary housing market.
  2. Contributing Factors: Economic growth moderation, rapid interest rate hikes, and slower economic growth in neighboring countries contributed to the sales decline. Regulatory uncertainty also played a role in investor hesitancy.
  3. Construction Challenges: Despite demand, construction struggled to meet supply due to land shortages, bureaucratic hurdles, labor shortages, and rising material costs.
  4. Price Trends: New home prices saw a more significant increase compared to used homes, with prices rising by 6% and 3.3%, respectively, in the first three quarters of 2023. Overall, housing prices in Spain rose by 3.4% amidst high inflation rates.
  5. Future Projections: Looking ahead to 2024, gradual market improvement is anticipated, with a noticeable shift expected by 2025. While sales may dip, a strong job market is projected to maintain transactions around 600,000. However, ongoing regulatory uncertainty may limit supply changes.

Discover two hidden gems along the Costa del Sol – Manilva and Casares – Explore the unique features and real estate developments shaping these emerging investment hotspots.

Manilva:

Nestled amidst the beauty of the Costa del Sol, Manilva boasts a diverse cultural, tourist, and gastronomic heritage. From its charming old town with traditional white village architecture to the vibrant marina of La Duquesa, Manilva offers a blend of tradition and modernity. The recent transformation of its tourist offerings has sparked increased demand for luxury properties, making it an attractive destination for real estate investment.

One exclusive contemporary development worth considering is located in Bahia de las Rocas, this new project of semi-detached and townhouse homes with 3 and 4 bedrooms and spacious terraces offering stunning sea views and upscale amenities, making it an ideal investment opportunity for those seeking a luxurious coastal lifestyle.

Casares:

Renowned for its natural beauty and historical significance, Casares is a picturesque town nestled between the Ronda mountain range and the Mediterranean Sea. The coastal region of Casares offers a perfect blend of tranquility and accessibility, with easy access to top-notch amenities and services. Its emerging real estate market presents attractive investment prospects, especially for those seeking year-round residence or holiday homes.

A new development in Casares Costa offers modern homes 2, 3, and 4 bedrooms, distributed across 9 modern blocks that seamlessly integrate with the adjacent golf course with high-quality finishes and convenient access to golf courses, beaches, and marinas. This development showcases the best of Costa del Sol living, combining comfort, convenience, and style.

Conclusion:

Despite challenges, the real estate market shows resilience and potential for growth. Projections for 2024 indicate a gradual improvement, with a significant recovery anticipated by 2025. Addressing workforce shortages, streamlining construction processes, and reducing regulatory uncertainty are critical for sustained market growth. By focusing on increasing housing supply and adopting proactive measures, stakeholders can navigate challenges and capitalize on emerging opportunities in the real estate sector.

references: bbva report 2024 (España | El mercado inmobiliario, de menos a más en 2024)
www.bbvaresearch.com