Spain Residential Real Estate Market Analysis
The Spain Residential Real Estate Market size is expected to grow from USD 155.29 billion in 2023 to USD 216.79 billion by 2028, at a CAGR of 6.90% during the forecast period (2023-2028).
Though housing is becoming expensive in the country, the demand is also growing significantly, driving the market. Furthermore, rising international investors in the market are propelling the market growth.
- Following the pandemic's catastrophic shock, the Spanish economy improved substantially throughout 2021. With a decline of about 16% in the last quarter of 2020, La Rioja was the Spanish region where the pandemic's impact on real estate values was higher than the previous year. The autonomous city of Melilla was the only place in Spain where there was an increase compared to pre-pandemic data.
- Since the beginning of 2023, it appears that the Spanish real estate market has made a complete recovery to pre-covid levels and is regaining its health. According to the National Institute of Statistics, home transactions in 2021 will be the highest in 14 years. According to Forbes, it will continue to expand at the same dynamic rate that it began in 2021, and it will escape real estate bubbles. Following confinement and societal limitations, there is a greater demand among the Spanish people for larger homes, particularly those with outdoor areas. In cities such as Madrid, a significant portion of the city center population has chosen to live outside of the inner city circle in exchange for a higher standard of life, in greener regions, and with more living room.
- According to the National Institute of Statistics (INE), in January 2022, a staggering 52,684 property transactions took place in Spain, which is the highest figure for the first month of the year since 2008. February 2022's figures were slightly higher at 53,623 transactions, which is an annual increase of 24%. 20.4% of February's property transactions were new homes and 79.6% were used. The number of new homes being purchased increased by 9.2% compared to February 2021 and used homes increased by 28.4%.