As the European housing market remains in the doldrums, Spain is bucking the trend; experiencing a mini-boom.
According to statistics company, Eurostat, property prices in Spain increased by 4.3% in the final quarter of 2023. To further support the claims of a buoyant market in Spain, the number of property sales in 2023 was 586,913 the second highest figure in 15 years.
By means of comparison in Germany, considered the European economic powerhouse, house prices fell by 8.4% in 2023.
Reasons why Spain is bucking the European trend is being attributed to:
- Influx of expat purchasers
- Booming tourism
- Strengthening Spanish economy
- Decreasing numbers of new properties being constructed
The prosperous property picture is not consistent across all of Spain’s regions. While the popular areas like Costa Blanca, Costa del Sol and cities like Barcelona are ‘full steam ahead,’ in inland areas like Castile and Leon and Extremadura – houses lie empty, unable to attract a buyer.
With expats being more international than ever and coming in their numbers from new markets like Poland, the message is to plan ahead and be structured about your Spanish property search. If you’re looking in popular areas, close to the coast then sellers are in a good position. If you need a mortgage, have your offer in principle and get your power of attorney sorted early so the NIE number(s) and bank account can be set up before you are ready to make an offer.
