The Spanish sun isn’t the only thing heating up these days. Property prices across the country have been steadily climbing, making Spain a hot market for investors and homebuyers alike.
National Growth, Regional Variations
While national figures show an average increase of around 7% in 2023, some regions are experiencing significantly steeper rises. The allure of the Mediterranean coast continues to draw international buyers, pushing prices there up by as much as 15% annually.
New vs. Old
The trend isn’t uniform across property types either. New-build prices are expected to rise at a slower pace in 2024, with a projected increase of 4.1% in the first half of the year. Existing properties, on the other hand, saw a slight uptick of 0.4% in February 2024, following a strong quarterly rise of 2.4%.
Looking Ahead
Despite some predictions of a slowdown, Spanish house prices seem poised to continue their upward trajectory, at least in the short term. The shortage of new builds, coupled with sustained foreign interest, is putting upward pressure on the market. The Balearic Islands, for instance, maintain their title as the priciest region at over €4,000 per square meter.
Is Spain the Right Investment for You?
While the market outlook appears positive, potential buyers should carefully consider their goals and budget. Areas with high foreign demand might offer good rental yields, but affordability could be a challenge. Consulting with a local property expert can be crucial in navigating the intricacies of the Spanish market.