After one of the best years in history, Spanish property is showing signs of slowing down towards the end of 2022. In September, for example, 57,333 properties were sold in Spain, which is 6.9% more than last year. This is the best result since 2007. However, analysts point to this as a change from the double-digit gains seen in previous months and see it as a slowdown, not a sharp decline.
Cities and regions
The capital of Spain and one of the leading financial centers in Europe. Madrid attracts investors due to its cultural heritage, high quality of life and stable growth in property prices.
The largest port and the second largest city in Spain. Barcelona is known for its architecture, art and tourism, making it an attractive place to invest in residential and commercial real estate.
The third largest city in Spain, Valencia attracts investors with its beaches, culture and scientific institutions. The real estate market here continues to grow, especially in the short-term rental sector.
Seville, the capital of Andalusia, is known for its history and culture. The real estate market here is stable, with good investment opportunities in residential properties and hotels.
Bilbao is the industrial and cultural center of Northern Spain. The city attracts investors with its museums, architecture and strong growth in the commercial real estate sector.
Malaga is a popular tourist city in southern Spain. Investors are finding opportunities here in the short-term rental and holiday home sector. In the 3rd quarter of this year, 10,919 transactions were made on the Costa del Sol, which increases the annual total to 41,898, an increase of 39.6%.
Granada is known for its university and historical monuments. The city offers investors opportunities in the student housing and tourism sector.
Zaragoza, Cordoba, Toledo and Cadiz
These cities also offer unique opportunities for investors, including cultural monuments, tourist attractions and a stable real estate market.
Forecasts for 2023
- Sales: Analysts predict that there will be fewer real estate transactions in Spain in 2023. After an expected 600,000 this year, there will be around 550,000 next year.
- Prices: Latest data points to an 8% increase in property prices this year. On the Costa del Sol, prices rose 11% YoY to Q3, with resale prices rising 13.5%. However, prices are expected to fall by 1-3% in 2023.
- Inflation: The Bank of Spain forecasts Spanish inflation to halve next year and expects it to be around 4.4%, half the current rate.
Practical advice for potential buyers
- Define your needs: Understanding what you are looking for in real estate will help you narrow down your search and save time.
- Research the market: Understanding current prices and trends in your area of interest will help you make an informed decision.
- Hire a Local Agent: A local real estate agent knows the market and can help you find the best deals.
- Check legal aspects: Make sure you have all the necessary documents and permits before making a purchase.
- Consider financing: If you’re considering taking out a mortgage, research your options ahead of time so you have the best terms.
- Visit the property live: If possible, visit the property live to make sure it meets your expectations.
- Get a valuation: Having a professional valuation can help you make sure the price is in line with market value.
- Plan for the future: Review your long-term plans and make sure the property you choose fits your future needs.