Spain Monthly Market Review - February 2024

Spain showed signs of recovery in February 2024, after a period of decline in 2023.

• Home sales in Spain increased by 5.8% year-over-year in February 2024, reaching 52,796 transactions, ending 13 consecutive months of declines . For the first two months of 2024 (January and February), home sales rose by 1.6%

• Housing prices continued to rise, with the average price of used homes for sale increasing by 7% year-over-year in March 2024, reaching €2,079 per square meter . However, the pace of price growth was expected to slow down compared to 2023.

• The shortage of housing supply, especially in major cities and tourist hotspots, continued to put upward pressure on prices despite higher interest rates and economic slowdown .

• Financial institutions and real estate experts forecasted a further increase in housing prices for 2024, although at a slower pace than 2023, with estimates ranging from 2.58% to 3% growth .

• Home sales were expected to decline in 2024 compared to 2023, but remain at relatively high levels around 550,000 to 600,000 transactions, supported by a strong labor market and pent-up demand

In summary, the Spanish real estate market showed signs of recovery in February 2024, with rising home sales and prices, although the pace of growth was expected to moderate compared to the previous year.