The price drops that many property experts forecast for this year did not materialise and in fact the cost of buying a home in Spain increased by 7% in the last year. In the biggest cities of Madrid or Barcelona, property prices skyrocketed and some even reached levels never seen before.

There was also a strong upward trend along the Mediterranean coastal areas and the Balearic Islands, which many believe was driven by international demand. According to the latest housing stats available, in Alicante and Palma de Mallorca the prices rose by 15%, while it was 14% in Valencia and 13% in Málaga.

2023 comes to an end with a continued rise in house prices in Spain and an even greater demand due to a decreasing supply.

Real estate experts predict that price tensions will continue to increase in 2024 in the most dynamic markets, while in the rest, they may begin to stabilise or even fall.

The real estate employers’ association argues that in some areas prices are too high and should drop by at least 10%, so that the population can afford them – but is this likely to happen within the next year?

Laura Martínez, spokesperson for mortgage comparison site iAhorro, said recently that the market has begun to stabilise and everything indicates that this will be the trend in the coming months. “Inflation is being controlled and the European Central Bank should not raise interest rates further, so there could soon be reductions in prices”, she said.

Because of this Martínez believes that the first six months of 2024 will continue to be marked by “instability” but that the market could rise again in the second half of the year.

Bankinter on the other hand has forecast a 2 % drop in prices. The bank predicts that the decline will be moderate and temporary, however. “Prices should tend to stagnate and could even fall slightly next year. But, if this correction occurs it will be temporary due to the high rate environment,” the company’s latest report on the real estate sector states.

Not everyone agrees that the prices will stabalise or fall, though, Ferrán Font, Head of Studies at estimates that prices will continue to rise in 2024, but they will be less pronounced and will only increase by around 1% to 2%.

So for 2024 if you’re looking to buy in one of Spain’s main property markets such as the Mediterranean coasts, Barcelona, Madrid or the Balearic Islands you’re unlikely to find a great bargain in 2024 and prices may continue to rise. Elsewhere in the country prices will begin to stabilise and some are even predicting slight drops.

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