November 22, 2024

Record number of real estate transactions

The interest rate cuts are beginning to produce clear results on the real estate market in Spain. Despite the seemingly unstoppable rise in housing prices, September ended with 61,887 housing transactions, which is 41.5 percent more than in September 2023.

Admittedly, the volume was in September 2023, particularly low due above all to the high interest rates. However, the recovery is the largest since August 2021. And the 60,000 monthly real estate transaction mark has not been surpassed since July 2007 when the industry reached the peak of the real estate boom.

Behind the numbers, according to the analysts, is partly the unfailing demand from foreign buyers and buyers who do not need a bank loan, and partly the improved financing conditions - with banks adjusting the interest rate on mortgages downwards as a result of a falling Euribor.

The recovery in September can be observed in all segments. New-build home sales rose nearly 55 percent, with 12,531 properties sold - the highest since January 2014, and second-hand home sales rose 38.4 percent to 49,356 transactions, the highest monthly figure since May 2022.

The experts believe that the rise, together with an increasingly scarce supply, will likely cause prices to continue to rise. According to the housing portal Idealista's statistics, the average square meter price in Málaga province in October was 3,436 euros, which means an increase of 12.7 percent on an annual basis.

The number of residential sales has increased in all Spanish regions, but Andalusia was the region where the most properties were sold in September this year. Next came Valencia, Catalonia and Madrid.

Soures: Diariosur and Idealista