What will happen in 2024 with the real estate market?

We have just welcomed 2024, and at ATIPIKA – a real estate agency specialized in the luxury sector - we are ready to adapt to the latest trends in the real estate market, make the most of opportunities, and face any challenges that arise in the industry. What does this year hold for us? What milestones will mark the Real Estate sector in our country? We anticipate some of the most relevant events that will take place in the real estate market in the coming months.

Slower Real Estate Transactions Expected

In 2023, there was a decrease in property transactions compared to the significant post-pandemic increase in 2022. Nevertheless, over 550,000 transactions were completed, one of the highest results since 2008. For this year, considering the high interest rates, a stable growth is anticipated driven by pent-up demand. It is estimated to exceed 450,000 property transactions, marking a return to the usual market dynamics. As for the demand for properties—both urban and rural—it will continue to rise and be driven by: 1. An improving economic environment. 2. Favorable interest rates. 3. A preference for homes as a safe investment option.

Different Trends in Prices Based on Property Type

Prices for existing and new construction properties will show different inclinations: - The limitation of available land, coupled with rising construction costs and a shortage of labor, will restrict the growth of new property stock, leading to an increase in their values. - For the first quarter of 2024, it is expected that prices for existing properties will continue to rise. However, sustained inflation and the reduction in families'' purchasing power could slow down the demand. In less sought-after areas, a slight decrease in values is projected, while in major cities and coastal areas, moderate increases of around 5% are expected.

One of the most challenging times for the rental market

The rental market anticipates high demand and a limited supply of housing. This challenge intensifies as many families, facing difficulties in purchasing, are opting for leasing. An increase in monthly rents is expected, likely exceeding 5% annually. This phenomenon will give rise to two outcomes: 1. The exclusion of tenants with lower incomes. 2. An increase in the search for rooms in shared housing. Furthermore, it is important to note that, according to the Royal Decree approved by the government, existing contracts between January 1 and December 31, 2024, can only increase their value by a maximum of 3%, in accordance with the provisions of the sixth final provision of the Housing Law.

New Buyer Profiles

Following the pandemic, the demand for properties underwent a significant shift in the type of buyer. A profile that has been consolidating up to the present day and is characterized by the following aspects: - Strong financial solvency. - Frequently international origin. - Deep knowledge of the real estate sector. - Resistance to the increase in interest rates. In 2024, it is anticipated that the interest of foreign investors in the Spanish real estate market will remain stable. There will be a decrease in the search for homes by those requiring mortgage loans, and the demand will shift towards the purchase of properties as an investment.

Innovations that will shape 2024

Environmental awareness will have a significant impact on the sector, shifting towards sustainable construction practices and energy-efficient consumption. It is also expected that the increase in the search for homes will favor the development of smaller cities. Likewise, the consolidation of remote work will facilitate living beyond the metropolises, where well-being and access to services will be essential for buyers. Are you considering carrying out a real estate transaction and would like to have the right professional advice? At ATIPIKA, we offer a comprehensive and multilingual service, personalized attention, and a 25-year real estate track record that provides you with total confidence and trust. Feel free to visit our offices for more information. You can find us at: - Passeig de Gràcia 20, 2º 1ª – Barcelona. - Carrer Saragossa 1-2, local 19 – 20 – Castelldefels. - Avinguda de Fort de l’Eau, 64 – Maó. We look forward to seeing you!