Increase in home purchases in Spain

This year 2024 has ended with a significant increase in home purchases in Spain.

This has been motivated by various reasons and may produce changes in the sale and rental prices of properties for next year.

Figures on the rise in home sales

The number of home sales has increased by more than 50% compared to the month of October in previous years, with more than 69,000 transactions taking place.

This is the largest increase since August 2021 and the highest number of transactions since May 2007.

The National Institute of Statistics (INE) has collected data confirming that home sales have increased for more than four months year-on-year after a small rise in July and August and the way in which they have shot up by 40% in September.

As for the type of housing, new homes increased their sales by 83% year-on-year, with 16,000 transactions. For second-hand homes the increase was more than 40%. In both cases the increases are greater than those of recent years.

Reasons for the increase in real estate transactions

The increase in transactions is mainly attributed to the change in the mortgage cycle, which has been driven by the drop in interest rates. This has started a dynamic season for home purchases due to the optimism and confidence of buyers in the market, in addition to the fact that households are saving more and mortgage conditions are more attractive due to the drop in the Euribor.

Therefore, there is an increase in demand due to the reduction in financing costs and an expectation of an increase in housing prices, which is why many people have brought forward their property purchases.

Future forecasts

These striking changes indicate that there will be a new boom in home purchase and sale transactions.

With improved mortgage conditions and rising household savings, home purchases are expected to increase in 2024 and 2025.

The context of the real estate sector indicates that housing production is low. Therefore, the increase in demand to buy apartments and houses will cause prices to rise, both for second-hand and new-build homes.

Thus, the price of housing will continue to rise in 2025 due to the difference between supply and demand, with an increase forecast that could be between 4% and 10%.

What about the rent?

The price of rental housing in Spain has risen by more than 10% in October compared to other years.

By region, the Autonomous Communities of Madrid and Catalonia are the most expensive to rent a home in. They are followed by the Balearic Islands and the Basque Country.

On the other hand, Extremadura is the autonomous community with the lowest rental prices and Castilla-La Mancha follows in terms of affordable rent.

Madrid is the capital city where the price of rental housing has increased the most in the last year, with an annual rise of 15.5%. It is followed by Barcelona and Oviedo.

Lleida is the only capital where rental prices remain the same as a year ago.

As for the capitals where the price has risen the least compared to the previous year, in addition to Lleida, we find Soria and Teruel, both with an annual increase of 3%.

Rental forecast for 2025

The market for apartments and houses for the year 2025 will be in high demand, as we have seen.

However, the update of rents from January is faced with the regulation of rental prices.

The new index establishes that the limit for annual update of income will be the minimum value between the following data:

The annual rate of change of the CPI.
The annual rate of change in the core CPI.
An average rate that is adjusted and defined by public bodies specializing in housing and economics.

of this regulation is to prevent tenants from suffering excessive increases in the face of high inflation and to ensure that landlords can maintain their rents. This year there has been an increase in the purchase and sale of homes, mainly due to the improvement in financing conditions due to the drop in the Euribor. For 2025, the number of transactions is expected to continue to rise, which may lead to an increase in housing prices due to the difference between supply and demand. As for rent, it has also increased this year and will do so next year, but with the limitations included in the new regulation of rental prices.

Further information

This article is part of our service Real Estate Lawyer in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on How to buy a house in Spain.

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