Real estate in Spain: trends and forecasts for 2024

With a sun-drenched climate, extensive beaches and a rich cultural heritage, Spain remains a magnet for international investors with a Mediterranean dream. The Spanish real estate market has been growing steadily for years. Market experts believe that 2024 also looks bright. But what exactly are the predictions and trends? Are prices going up or would potential buyers be better off waiting? And which interior trends will tempt us in the coming year?

Let's recap: this is what 2023 looked like

A year ago, many real estate experts predicted that the prices of houses and apartments in Spain would fall. That didn't happen. On the contrary: prices rose by an average of seven percent. In cities such as Madrid and Barcelona, real estate prices are at record levels. But prices also rose on the southern coasts and the Balearic Islands - areas popular with the international public. In the province of Alicante, buyers paid an average of fifteen percent more than a year earlier, in Valencia fourteen, and in Malaga thirteen. Spanish real estate is in demand, but fewer properties are coming onto the market. The result: demand that exceeds supply and purchase prices steadily rising.

Trend 1: price increases continue

The expectation is that the economy will continue to grow and that tourism will also continue to show a strong trend. As a result, demand remains high for both residential and commercial properties in Spain. Because demand is rising faster than supply, there is tension on prices. Will they go up or down in 2024? According to experts, we need to make a difference between the different regions.

In markets such as Madrid and Barcelona, prices are already so high that price increases in 2024 will not be too bad, they expect. Perhaps they will not exceed the level of inflation too much. In some less popular regions of the country, prices could stabilize or even fall - especially as the European Central Bank tries to bring inflation under control. Whether these declines will occur in the next twelve months remains to be seen.

In highly coveted areas, such as the Costa Blanca or the Costa del Sol, the situation is different. The demand there remains enormous, especially from an international perspective. Because large numbers of new properties are not coming onto the market, specialists do not expect a price drop or even a stabilization. What's more, some potential buyers were looking forward to it in 2023, hoping for a bargain. Now that there are no price drops, they will no longer wait in 2024.

Is 2024 a good time to buy property in Spain?

Experts do not expect demand to decrease in 2024. In markets that are in demand - such as the Mediterranean coasts - this means that prices will continue to rise. The only way is up. Making your move quickly is still the message. It is very unlikely that major sales will take place there in the near future. Elsewhere, away from the coasts, prices may fall, but no one knows when and perhaps not more than a few percent. Everyone has to decide for themselves whether it is worth waiting for it, whether you are postponing your dream for a minimal discount.

Trend 2: the market is becoming increasingly international

Spain's strong economy and stable political landscape have traditionally attracted hordes of international investors. Both factors make the country a safe, stable destination. In recent years, foreign buyers have accounted for around 15 percent of all property purchases in Spain. This share is expected to increase further in 2024. This concerns both private individuals with dreams of their own home under the Spanish sun and smart professional investors who smell money.

Trend 3: luxurious, open and natural

Some interior trends for 2024 at a glance:

• Earthy tones and natural, warm colors create inviting and relaxing spaces. Warm colors such as terracotta and beige dominate, as in the exclusive Pure Sea apartments in Villajoyosa , Alicante.

• Bathrooms are transformed into mini spas, oases of relaxation with natural materials such as wood and stone, soft lighting, minimalist accessories, freestanding baths and rain showers.

• Wooden panels are making a comeback. Not to cover entire walls, but as eye-catchers - strategically placed to accentuate specific interior elements. For example in the bedroom of this beautiful apartment in Casares .

• Open spaces are central. This promotes a feeling of connection and space. Rooms flow into each other both visually and functionally. The Iconic apartments in Tenerife and this townhouse in Mutxamel illustrate the trend nicely.

• Biophilic design emphasizes the integration of nature indoors. Think of elements such as plants and vertical gardens, but also organic textures and large windows that provide abundant natural light. See the photo in the header, taken in an apartment building in Casares , as an example.

• The demand for luxury real estate, such as this villa in Altea , remains extremely high. The more luxurious, the better.

Trend 4: the rental market is changing

Spain has been struggling with a shortage of affordable rental properties for some time. In 2023, the Spanish government introduced a law to tackle the rental crisis and make more housing available to Spaniards. Unfortunately, the law had the opposite effect: due to the stricter conditions, many landlords withdrew their property from the rental market and instead offered it as a short-term holiday home. The tourist rental market is not covered by the same law.

As a result, the rental market showed a shrinking supply, which resulted in price increases. In November 2023, the average rent was 9.2 percent higher than a year earlier, with even stronger increases in specific cities such as Valencia (21.6 percent) and Malaga (15.2 percent). Ten percent of the total supply of rental properties is now dedicated to the short term, a growth of forty percent. That trend looks set to continue into 2024.

Back to search results