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Zetios Properties LLC: 2024 Spanish Real Estate Forecast

·2 mins

The latest scoop from Zetios Properties LLC’s data crunchers is that 2023 was a pretty stellar year for Spanish residential real estate, raking in around 15.2 billion euros. That’s right up there with the all-time high of 16.077 billion euros we saw three years back. And while the tail end of the year saw a slight dip in the number of homes being sold compared to 2022, it doesn’t look like we’re headed for any major housing market meltdown.

Spain’s still got it going on as a hot spot for foreign real estate investment. Looking into 2024, the smart money’s expected to keep flowing into the “build to rent” arena because of its juicy returns, not to mention luxury digs and single-family pads. The whole single-family home with a patch of green trend got a major boost during the Covid-19 pandemic and hasn’t really let up since.

When it comes to where international investors are throwing their euros, the Mediterranean coastline, along with the Canary and Balearic Islands, are where it’s at, making up over 80% of foreign investment deals in 2022. And it’s not just foreigners; plenty of Spaniards are eyeing these spots too, either as investment opportunities, future second homes, or sweet retirement spots.

The numbers game from the National Institute of Statistics (INE) tells us Alicante is where foreigners are buying the most, snagging 19.4% of the total pie. Next up are Malaga, Barcelona, Madrid, the Balearic Islands, Valencia, and Murcia.

As for who’s buying, Brits lead the pack, followed by Germans and French folks, particularly loving the vibes in Costa del Sol and Costa Brava. Plus, 2023 saw a noticeable uptick in Dutch, Norwegian, Irish, and Danish investors getting in on the Spanish real estate action.

With inflation and mortgage costs doing their thing, there’s chatter about a potential dip in housing demand affecting the number of deals more than the prices, especially in those provincial capitals and beachfront cities. Predictions are we might not hit more than 500,000 transactions, a step down from 2023’s 630,000. But, Spain’s real estate is still seen as a pretty solid investment, so don’t expect the cash to stop flowing into those Spanish homes any time soon.

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