2024 Spanish Real Estate Market Report

Why is the market so strong?

There are many reasons why the Spanish real estate market is performing so well. Falling interest rates are reducing borrowing costs, likely increasing both local and foreign buying activity in the coming months. Spain’s perennial attractions as a lifestyle destination continue to draw foreign investors in growing numbers from across the globe, especially Latin America, the United States and Northern Europe, whilst local demand remains strong.

Key insights

Home Sales Growth: Year-on-year (YoY) home sales increased by 6%, marking the second-highest sales volume in over 15 years
Price Growth: Q2 2024 price growth in Spain outpaced the EU average by nearly three times
Foreign Buyer Activity: Foreign buyers accounted for the highest proportion of home sales in the first half of 2024, with a 28% increase compared to the 10-year average
National Average Prices: In H1 2024, national average house prices rose by an annualized 5%
New Home Sales: The sale of new homes reached the highest level in a decade, with a 24% increase compared to the ten-year average. However, housing starts have decreased by 53% YoY
Premium Property Demand: High-end properties, especially branded residences in regions like Marbella, Barcelona, and Madrid, have been a standout segment

Market analysis in more depth

Real estate transactions

350,818 residential property sales were recorded in H1 2024, the second-highest level in the last decade. Falling interest rates are expected to further boost sales in the second half of the year

Price trends

The average Spanish house price rose by 5% in the first half of 2024 compared to the same period last year
Asking prices have increased by 26% since Q1 2019, outpacing the 21% increase in sales prices during the same period

Mortgage lending

14% - the increase in new mortgage lending. The number of new mortgages signed was 21% above the ten-year average. New mortgage lending has remained surprisingly strong in the face of higher interest rates, and increased in the first half as Euribor rates turned down

New developments

Spain is not building enough homes to keep pace with demographic changes and demand. The rolling four quarter total of planning applications in Q1 was lower than in the same period in 2019, and has declined for two consecutive years

Foreign buyers in Spain

In H1 2024, 64,375 residential property sales involved a foreign buyer, marking the second-highest level on record. Foreign buyers now account for 19% of the market share
Foreign sales saw a 5% increase in Q2, demonstrating continued demand from international investors

Prime market

The prime property market (homes priced at €2.5 million or more) saw a 7% increase in listings, with 14,200 prime properties available. Málaga and Mallorca dominate the prime market, representing over 57% of the supply in Spain. For Lucas Fox, prime property sales were particularly strong in Costa Brava, up by 37.5%

Lucas Fox buyer profile

66.9% of buyers were international, with 33.1% being local
48.3% of sales were apartments, and 38% were houses/villas
Among foreign buyers, 62.3% came from the EU, with 33.1% of these being Spanish. Notably, buyers from the Netherlands represented 8.2% of the total
17.1% of foreign buyers were from non-EU European countries, and 10.4% were from North America