Else Beekman
In 2024, Spain’s property market saw a remarkable surge, with an average of 1,754 homes sold every day, totalling 641,919 transactions by the end of the year. This figure marks the second-highest number of sales since the market crash of 2008, trailing only behind the record set in 2022. Despite these staggering numbers, experts claim there is no housing bubble.
Andalucia emerged as the leader in property sales, with 344 homes sold daily. Madrid followed with 211, Catalonia with 272, and the Valencian Community with 286 daily transactions, according to the latest data from Spain’s National Institute of Statistics (INE).
The high demand has reshaped how real estate agencies operate. Property listings are becoming scarce as agencies increasingly rely on internal databases and waiting lists to match buyers with homes. This shortage of available properties is driving buyers to make higher offers, sometimes even overstretching their budgets to secure a purchase.
A new property frenzy without the bubble?
The current market frenzy is reminiscent of Spain’s housing boom in 2007, just before the bubble burst. However, experts argue that the market is fundamentally different today. The surge in property sales is driven by low interest rates, a more stable Euribor, and a strong job market, which collectively fuel a pent-up demand for housing. Additionally, soaring rental prices make mortgage payments more appealing than rental costs for many buyers.
Regional differences in property sales
While property sales increased across most of Spain in 2024, the Balearic Islands were the only region to see a decline, with a 3.8% drop. Regions with more moderate increases included the Canary Islands (4.8%), Andalucia (6.8%), and Catalonia (8.4%). On the other hand, Galicia experienced the highest growth at 22.3%, followed by La Rioja (20%) and Castilla-La Mancha (19.4%).
The interest in buying homes in these regions is closely linked to the rise in mortgage approvals. Across Spain, mortgage lending saw a significant increase of 11% last year. “The improvement in access to financing has particularly benefited residents of less sought-after areas, where property prices are more affordable, enabling families to purchase homes with greater ease,” explained Sergio Nasarre in the newspaper El País. He is a Professor of Civil Law and founder of the UNESCO Housing Chair.
Outlook for 2025: prices set to rise further
The outlook for 2025 suggests continued growth in property transactions, paired with a persistent shortage of available homes. Ferran Font, Director of Studies at Pisos.com, stated in El Mundo: “The situation suggests a record-breaking 2025 which, combined with the shortage of supply, will continue to push prices upward, making it more difficult for young people and low-income families to access homeownership.” These dynamics are likely to keep pushing property prices upward, further challenging young buyers and low-income families seeking homeownership.