To the surprise of some, Spanish property has seen growth in 2024 despite previous cooling trends and sustained 4% interest rates.

Q1 2024 saw a 0.2% increase in home sales, marking the first growth in one and a half years. This highlights that the market has normalized heightened interest rates as a base level and the post-pandemic environment, with the market now recovering.

Murcia is among the most popular foreign investment markets, particularly among Brits. Sales increased 6% in Murcia and 1% in Valencia.

When it comes to prices, regions across the board are seeing growth. Year-on-year growth has been annualized at 5% in Q1 of 2024, as the Balearics lead the way at 24%. Valencia, Andalusia, and the Canaries are all around the 6-8% growth range, while Madrid, Catalonia, and Murcia are just short of 5%.

Traditionally, Costa del Sol, Costa Blanca, and Balearics have been of the most interest due to their amenities and climate. In recent years, Andalusia, with popular regions such as Marbella, Sotogrande, and Ronda, has also had high international interest.

The south of Spain has also become the capital of wellness in Europe. Yoga, Tai Chi, Ayahuasca, and meditation retreats can be found all over thanks to the year-round sun and affordable land.

Although the number of Brits that expatriate to Spain has been decreasing for some time, this hasn’t affected other nationalities from seeing Spain as desirable. There are currently more Italians in Spain than there are British.

The Spanish government has also initiated the process of abolishing the golden visa program, which is a three-year renewable residence permit. As of today, 94% of these visas are linked to property investment according to Pedro Sanchez.

The program was successful in its attempt to attract capital during the eurozone crisis. However, with housing shortages in the inner cities, the program has become controversial, particularly with the rising rents, and is thus soon to be abolished.

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