Home sales increase in Spain after a year of declines

Did you know that – according to data published by the National Statistics Institute (INE) on Monday, April 22, 2024 – home sales in Spain registered an increase in February, putting an end to a year of negative trends?

Indeed, the sale and purchase of properties experienced a growth of 5.8% compared to the same period in 2023 by reaching a total of 52,796 operations. An event about which, from KM2 Real Estate Services, we are excited to share all the details.

The home sales in Spain put an end to twelve consecutive months of declines

The increase in housing sales in February was due to the significant growth in the sale of new apartments, which recorded a double-digit increase. On the other hand, the sale of second-hand homes also experienced a rise, albeit more moderate.

Specifically, second-hand property transactions grew by 2.2% over the previous year, with 41,268 transactions, while sales of new apartments increased by 20.8%, with 11,528 deals.

Of the homes sold, 92.9% were free properties, which experienced an increase of 6.7% year-on-year, reaching 49,033 transactions. In the case of subsidized housing – which accounted for 7.1% of the total – showed a 4.7% drop, totaling 3,763 transactions.

The total number of properties registered in the land registries, derived from public deeds, was 190,717 in February, representing an increase of 4.4% compared to the same month in 2023.

In terms of the type of transfer, those carried out by purchase and sale rose by 7% year-on-year. On the other hand, those carried out by donation, inheritance and exchange decreased by 1.2%, 1.6% and 3.9% respectively.

In terms of property types, 87% corresponded to urban properties – which include dwellings – which showed an increase of 7.3% year-on-year. Rural properties, which accounted for 13% of the total, recorded a growth of 5.3%, with 91,799 and 13,666 transactions respectively.

What happens if we look by region?

Andalusia led in the number of transactions, with 9,606, followed by the Valencian Community, with 9,154, Catalonia with 8,518 and Madrid with 6,323.

Thirteen autonomous communities sold more homes in February 2024 than in the same month of 2023. The most notable increases were observed in:

• Navarra (50.6%).
• Galicia (38.4%).
• Murcia (19.5%).

In contrast, these communities experienced a reduction in sales during the same period:

• Canary Islands (-12%).
• Balearic Islands (-10.3%).
• Castilla y León (-1%).

The trend in the sale and purchase of homes in Spain for 2024

According to María Matos, spokesperson and head of studies of the real estate portal Fotocasa, explains:

“In the first half of the year, we will see adjustments in mortgage offers by banks, which will strive to present more attractive mortgage products for homebuyers. It is likely that we will even see new competition between banks similar to that experienced when interest rates started to rise. This trend could keep the real estate sector on a positive path, undergoing a gradual transformation and adapting smoothly more than half a year after the increase in interest rates”.

From the General Council of the Official Associations of Spain, they emphasize that “the downward trend in the number of sales and purchases has already begun to reverse in 2024. The economic and political environment is more favorable than last year, which allows us to anticipate an increase in the figures in the coming months, especially in the regions less impacted by inflation. Small savers, who were looking for stability before deciding to buy homes and overcome the fear of the Euribor, reflect this change in trend”.

We are your trusted real estate agent in Barcelona and Madrid

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We are ready to start. Contact now our team of sales advisors, who will not stop until your property is sold.