In the Spanish real estate market, which has been showing signs of significant change for some time, the supply of housing for sale has decreased significantly in the last quarter of 2023.
This is evident from data recently published by real estate platform Idealista. The number of available homes in the fourth quarter of 2023 has fallen by 8% compared to the same period the year before. This decline highlights a worrying trend in the Spanish property market, with the supply of homes becoming increasingly scarce.
National decrease
The decline in housing supply is not limited to the major cities, but is noticeable in a wide range of provincial capitals throughout Spain. From north to south, cities such as Zamora and Santander experienced a drastic 28% drop in supply. This trend means that buyers face challenges in finding suitable homes. Furthermore, it raises questions about economic and demographic dynamics in these areas.
Specific cities under scrutiny
In cities such as Ávila and Santa Cruz de Tenerife, supply has even fallen by 26% and 23% respectively. As a result, the scarcity of housing is becoming a central theme in the discussion about housing access in Spain. Ceuta and Granada are also experiencing a significant decrease of 20%. These figures underline the seriousness of the problem at a national level.
Consequences for the real estate market
The decline in housing supply in cities such as Barcelona, Palma and Valencia has important implications for the real estate market as a whole. These cities are traditionally attractive to both national and international buyers, but are now facing an increasing scarcity of real estate options. This can lead to more competition among buyers and therefore to price increases.
Influence on the rental market
The decrease in housing supply also has consequences for the rental market. With fewer homes available for purchase, some owners may decide to rent out their properties rather than sell, which could drive up demand for rental properties and therefore rental prices.
Opportunities for seller
For sellers in the mentioned regions, the reduced availability of homes could be an opportunity to ask higher prices for their properties. Buyers may be willing to pay more for the available homes, which improves marketability.
Regional trends
In addition to the major cities, other provincial capitals such as Zamora, Santander, Ávila, Santa Cruz de Tenerife and Toledo are also experiencing significant declines in housing supply, ranging from 20% to 28%. This trend, which extends across the country, underlines the general decline in available properties on the Spanish property market. More information can be found on Idealista.
Also read: What to expect in 2024 for the Spanish housing market
