Understanding the Spanish Real Estate Market in 2024
Market Trends
The Spanish real estate market in 2024 finds itself at a crossroads of recovery and challenges. The average price of second-hand housing has experienced an increase of 0.4% in January, standing at 2,049 euros/m2. Although this annual growth of 8.2% still remains 3.2% below the historical maximum of June 2007, since August 2023, the market has maintained prices above 2,000 euros/m2.
Popular Locations
The most popular locations to invest in housing in Spain in 2024 include Madrid, Barcelona, Balearic Islands, Costa del Sol, Marbella, Orihuela, Estepona, Benalmádena, Villajoyosa, and Torrevieja.
Market Predictions
Predictions for the Spanish real estate market in 2024 suggest a phase of adjustment and diverse opportunities. Some experts predict a decrease of up to 5% in the average housing price, attributed mainly to a reduction in purchase demand during the first half of the year.
Types of Properties
Apartment
An apartment is a dwelling that is part of a building and can be located on any floor of it. Apartments are usually smaller than houses and are located in urban areas.
Chalet
A chalet is a single-family property built on private land. Chalets can be detached (a single dwelling), semi-detached (they share a wall with another chalet) or terraced (they share a wall with two other dwellings). They are usually located in quiet residential areas, away from the noise and pollution of cities.
Townhouse
A townhouse is part of a set of row houses, which have shared walls on both sides of the dwelling. They usually have independent plots at the front and back, and share some elements such as common areas, such as garages, swimming pools, accesses, etc.
Rural Estate
Rural estates are properties located in the countryside, outside urban areas. They are usually large in size and are intended for agricultural, livestock or forestry exploitation. However, they can also be used as a residence, especially for those seeking a quiet lifestyle in contact with nature.
In summary, the Spanish real estate market in 2024 presents a series of trends and challenges that buyers should be aware of. From price fluctuations to differences between types of properties, it is essential to be well informed to make accurate investment decisions.
Location, Location, Location
Popular Areas
Costa del Sol
The Costa del Sol is a popular tourist destination in southern Spain, known for its beautiful beaches and warm weather. In 2024, the Costa del Sol remains a desirable place to live, with a charming mix of old Mediterranean villages, national parks inland, and developed beach resorts. The region is famous for being the birthplace of Picasso and Malaga serves as a gateway to family favorites like Benidorm and Fuengirola.
Costa Blanca
The Costa Blanca is another popular tourist destination in Spain, known for its white sandy beaches and sunny weather. In 2024, the Costa Blanca remains a desirable place to live, with a variety of beach and mountain destinations, making it an ideal place for those looking to fulfill their New Year’s resolutions with unique experiences.
Madrid
Madrid, the capital of Spain, is a vibrant city with a rich history and culture. In 2024, Madrid remains a desirable place to live, with a wealth of cultural and sporting events, as well as a wealth of employment opportunities.
Barcelona
Barcelona is a cosmopolitan city known for its stunning architecture and vibrant cultural scene. In 2024, Barcelona remains a desirable place to live, with a wealth of cultural and sporting events, as well as a wealth of employment opportunities.
Inland Regions
The inland regions of Spain, such as the Basque Country, Aragon, Galicia, Castilla y Leon, Cantabria, and Navarra, are experiencing economic growth above 2% and above the national average in 2024. These regions offer a high quality of life with a privileged natural environment.
Lifestyle Preferences
In 2024, lifestyle preferences in Spain lean towards comfort and convenience. People seek to live close to services, schools, workplaces, public transport, and recreational facilities. In addition, online shopping has become increasingly popular, with 55.9% of people aged 16 to 74 shopping online in the last 3 months.
Climate Considerations
Regional climate variations in Spain can significantly affect living conditions. In 2024, the southern and eastern regions of Spain are the most affected by rising temperatures, drought, and desertification. However, some regions, such as Galicia Costa, Eastern Cantabrian, internal basins of the Basque Country, Western Cantabrian, Miño – Sil, Tajo and Duero, have water levels above the average of the last ten years.
Legal and Financial Aspects of Buying a Property in Spain in 2024
Purchase Process
Buying a property in Spain in 2024 has its tricks. Here is a step-by-step guide to buying a property in Spain:
- Establish Local Connections: One of the keys to a successful purchase is having local connections. This can range from a trusted real estate agent to lawyers specializing in real estate transactions.
- Do Thorough Research: Don’t just look for information about the property itself, but also research the neighborhood, local services, market trends, and any other factor that may influence your purchase decision.
- Be Flexible During Negotiation: While it’s important to have clear financial limits, it’s also important to be flexible during the negotiation process.
- Inspect the Property Thoroughly: Don’t underestimate the importance of conducting a thorough inspection of the entire property before closing the purchase.
- Consider Appreciation Potential: When evaluating a property, don’t just focus on its current value, but also on its long-term appreciation potential.
Legal Requirements
To buy a property in Spain in 2024, you need the following documents:
- Property Deed: Document that proves the ownership of the house.
- Energy Efficiency Certificate: Shows the energy consumption of the house and is mandatory to sell a house.
- Habitability Certificate or First Occupation License: They guarantee that the house meets the minimum habitability requirements.
- Certificate of Debts with the Community of Owners (if there is a community): It must be signed by the administrator and the president.
- Latest IBI Receipts: It is advisable to have at least the last four.
- Earnest Money Contract: It is not mandatory, but it is advisable.
Financial Planning
Buying a house involves a significant investment and requires careful financial planning. Here are some simple steps to plan your budget when buying a house:
- Budget and Income Assessment: Calculate your budget to buy a house. This involves assessing your income, your current expenses, and your savings potential.
- Banks’ Criteria for Granting Loans: Understand what banks look for when granting loans. Banks assess the applicant’s monthly income and compare it with their recurring expenses, including existing debts.
Finding the Right Property in 2024
Real Estate Agents: How to Find a Trusted Agent and Their Role in the Buying Process
Finding a trusted real estate agent is a crucial step in the property buying process. A real estate agent is an expert intermediary in property buying and selling transactions. Potential clients tend to trust more those professionals or agencies that someone they trust recommends or from which they find positive reviews on the Internet.
To find a reliable real estate agent, it is recommended to follow simple steps such as researching on the Internet, reading reviews, asking for references, among others. Once the list of agents has been narrowed down, you can be sure that you have chosen the best ones.
Online Resources in Spanish: Use of Property Websites, Online Listings, and Virtual Tours
In today’s digital age, there are numerous online resources that facilitate property search. Some of the most popular real estate portals include Idealista, Fotocasa, Pisos.com, and Habitaclia. These sites offer a wide range of services and operations, from buying and selling properties to renting them.
In addition, these real estate portals offer the possibility of virtual tours, allowing potential buyers to explore properties from the comfort of their home. This is especially useful in the current context, where travel restrictions and health safety are a primary concern.
Inspections and Surveys: Importance of Property Inspections, Structural Surveys, and Understanding Property Conditions
Property inspections and structural surveys are fundamental to ensure the safety and integrity of a property. A structural engineer’s report provides a detailed analysis and technical evaluation of the stability, safety, and structural integrity of a construction.
These reports are often requested in various situations, such as buying or selling properties, structural evaluations, major rehabilitations, or resolution of structural problems. The main objective is to provide a professional assessment of the structure’s condition and recommend any corrective action or necessary improvements.
In summary, finding the right property in 2024 involves a combination of finding a trusted real estate agent, using online resources, and understanding the importance of property inspections and structural surveys. With these elements in place, buyers can be confident that they are making informed and safe decisions on their path to homeownership.
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