Lucas Fox Spanish Real Estate Market Report / First half 2023
EXECUTIVE SUMMARY
The Spanish property market had an excellent first half of 2023, with key market indicators like home sales, mortgage lending, and house prices at or near decade highs. The market’s overall performance was second only to last year, when it went through a period of post-pandemic euphoria that has given way to a solid recovery underpinned by strong local and foreign demand. Half way through 2023, and with the available figures in hand, all the indicators point towards a levelling out after last year’s boom as the Spanish housing market shows extraordinary resilience in the face of headwinds like rising interest rates and political uncertainty. Foreign buyers, in particular, appear to have an undiminished appetite for property in Spain so far this year. Despite slightly softer sales compared to last year’s exceptional growth, house prices have held their ground, with the latest figures showing a small fall in completed sale prices, and an upward acceleration in asking prices towards double digits in the second quarter. Prices are being supported by strong demand coupled with a shortage of high-quality property for sale in big cities and popular coastal areas that has persistently impacted the market for the last couple of years. Considering how well the housing market has handled the challenges of the first half of 2023, and the positive performance of the Spanish economy with record employment figures in Q2, the outlook for the rest of the year remains encouraging in the absence of any unexpected shocks.
SALES INDEX, BASE = Q1 2019 Source: MITMA
PRICE INDEX, BASE = Q1 2019 Source: Idealista / Notaries
SPAIN
ASKING PRICE
SOLD PRICE (JUNE)
100
100
100
113.2
114.1
117.8
50
150
50
150
50
150
Q1 sales 157,817
Y-O-Y -10%
Trend
Q2 €/sqm 1,990
Y-O-Y 7.6%
Trend
Q2 €/sqm 1,616
Y-O-Y -1.7%
Trend
The sales and price index gauges show how much sales and prices have changed in percentage terms between Q1 2019 and Q1 2023 (Q2 in the case of asking prices).Q1 2019 = 100.
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