Home Buying in Spain Set to Increase by 7%–10% in 2024
The real estate market in Spain is on an upward trajectory, with predictions from a large real estate company in Madrid indicating a 7% to 10% increase in home buying for 2024. This positive trend is largely driven by a surge in demand for properties in popular vacation destinations.
Rise in Demand for Vacation Properties
Since the beginning of March, there has been a notable uptick in the desire to purchase homes in holiday hotspots. This trend has significantly boosted the overall real estate activity in Spain.
Popular Vacation Destinations
Key areas experiencing a 30% rise in demand include:
The Mediterranean Coast
The Cantabrian Coast
The Balearic Islands
The Canary Islands
These regions are particularly attractive due to their scenic beauty, pleasant climates, and excellent amenities.
Spring Surge in Second Home Market
Springtime has revitalised the second home market, leading to a marked increase in real estate transactions. This seasonal boost is a common phenomenon, with warmer weather and vacation plans driving the market forward.
Impact of Lower Interest Rates
This large estate brokerage anticipates a decrease in interest rates this year, which is expected to stimulate even greater interest in property investments. Lower borrowing costs typically encourage more buyers to enter the market, potentially driving up prices.
Advice for Prospective Buyers
Given the current trends and the likelihood of rising prices, the broker advises buyers who do not need financing to act quickly. Purchasing now could yield significant benefits before prices escalate further.
Optimism About More Affordable Mortgages
The agency remains hopeful that mortgages will become more affordable in the near term. They highlight that, on average, Spanish renters spend about 50% of their net monthly salary of approximately €1,700 on rent. In contrast, homeowners allocate around 38% of their income to mortgage payments.
Conclusion
In summary, the Spanish real estate market is poised for growth in 2024, with a significant boost in demand for vacation properties and favourable conditions for home buyers. Potential buyers, especially those not reliant on financing, should consider making their purchases soon to take advantage of current trends.
FAQs
Why is home buying in Spain expected to increase in 2024?
The anticipated increase in home buying in Spain is driven by a combination of favourable economic conditions and rising interest in vacation properties. Lower interest rates are making mortgages more affordable, while the demand for properties in desirable holiday destinations is surging. These factors together create an environment where more people are motivated to invest in real estate.
Which areas in Spain are seeing the highest demand for vacation properties?
The areas experiencing the highest demand for vacation properties in Spain include the Mediterranean Coast, the Cantabrian Coast, the Balearic Islands, and the Canary Islands. These regions are popular due to their stunning landscapes, pleasant climates, and well-developed infrastructure, making them ideal for both holiday homes and investment properties.
How will lower interest rates affect the real estate market?
Lower interest rates will make borrowing more affordable for potential home buyers, which is likely to increase demand for properties. As more people can secure mortgages at lower costs, the competition for available homes will intensify, potentially driving up property prices. This makes it an advantageous time for buyers to enter the market before prices rise further.
What advice is there for buyers who do not need financing?
For buyers who do not require financing, recommendations are to act quickly to purchase properties. Since interest rates are expected to drop and demand is increasing, property prices are likely to rise. By buying now, these buyers can avoid paying higher prices in the future and secure their desired properties while the market conditions are favourable.
How do mortgage payments compare to rent payments in Spain?
In Spain, the cost of mortgage payments is generally lower compared to rent payments. On average, renters spend about 50% of their net monthly salary on rent. In contrast, homeowners typically allocate around 38% of their income to mortgage payments. This difference highlights the financial advantage of owning a home, as mortgage payments tend to be more manageable than rental costs over time.
The Minister of Transport and Sustainable Mobility, Óscar Puente, recently made his first official visit to the province of Alicante. During this visit, he announced significant investments and improvements for the Alicante Airport. While confirming these developments, he also addressed the hot topic of a second runway, making it clear that it is not currently part of the plan.
Minister’s Visit to Alicante
This visit marked a significant event as it was Puente’s inaugural institutional visit to Alicante. The minister’s presence underlined the importance of Alicante as a key hub in Spain’s transport network. His visit was eagerly anticipated, especially following Aena’s announcement the previous day.
Speech at the Alicante Forum
At the Alicante Forum, the minister outlined his vision for the future of the Alicante Airport. His speech highlighted the commitment to enhancing the airport’s infrastructure, aiming to support the region’s growth and development.
Planned Investments in Infrastructure
Puente announced major investments in the airport’s infrastructure, aiming to increase its capacity and efficiency. These improvements are designed to accommodate the anticipated passenger growth, which is a crucial factor for the region’s economic expansion.
Passenger Growth Target
One of the key goals outlined by the minister is to enable the Alicante Airport to handle up to 26 million passengers annually. This is a significant increase from the current numbers and reflects the region’s growing popularity as a travel destination.
Second Runway Decision
Despite these ambitious growth targets, Puente stated that there are no immediate plans to construct a second runway at Alicante Airport. He emphasized that the current infrastructure, with some enhancements, would be sufficient to meet the projected passenger numbers.
Statements by EasyJet’s Javier Gándara
Backing up Puente’s statement, Javier Gándara from EasyJet pointed out that many international airports efficiently handle large passenger volumes with a single runway. EasyJet’s new base at Alicante Airport serves as a testament to the airport’s current and future capabilities.
Comparison with Other Airports
Puente drew comparisons with other major international airports that manage up to 33 million passengers annually with just one runway. This comparison was intended to reassure stakeholders that Alicante Airport could achieve similar efficiency levels.
Current Passenger Processing
Currently, Alicante Airport handles approximately 16 million passengers each year. The minister noted that the airport has significant potential for growth, which is not solely dependent on the number of runways but also on the efficiency of its operations.
Expansion of Terminals
A significant part of the investment will go towards expanding the passenger terminals in both Alicante and Valencia. These expansions will include the construction of new terminal areas, more passenger boarding bridges, and enhancements to the overall passenger experience.
Financial Investment
The planned expansion and improvements come with a substantial financial investment of 1,000 million euros. This funding will be used to enhance the airport infrastructure, making it more capable of handling increased passenger volumes and improving operational efficiency.
Increase in Operational Capacity
One of the primary objectives of the planned investments is to increase the hourly operation capacity of the airport. This means more flights can be handled each hour, reducing delays and improving the overall efficiency of airport operations.
Minister’s Commitment to the Region
Puente reiterated his commitment to supporting the region’s growth. He assured that if further expansions or enhancements are necessary, he would not hesitate to back those initiatives to ensure the region continues to thrive.
Conclusion
In conclusion, while the minister has ruled out the construction of a second runway at Alicante Airport for now, the planned investments and improvements are set to significantly enhance the airport’s capacity and efficiency. These developments are expected to support the region’s growth and meet the increasing demand from travelers. The minister’s visit and announcements have reassured the stakeholders about the government’s commitment to the region’s transport infrastructure.
FAQs
Why has the minister decided against a second runway for Alicante Airport?
The minister believes that the current infrastructure, with planned enhancements, will be sufficient to meet the projected passenger numbers. He pointed out that many international airports manage large passenger volumes efficiently with a single runway.
What are the main improvements planned for Alicante Airport?
The main improvements include expanding the passenger terminals, constructing more boarding bridges, and increasing the airport’s hourly operational capacity.
How much is being invested in the airport’s expansion?
A total of 1,000 million euros is being invested in expanding and enhancing the airport infrastructure in Alicante and Valencia.
What is the current passenger handling capacity of Alicante Airport?
Alicante Airport currently handles approximately 16 million passengers annually.
How will the planned improvements affect the airport’s passenger capacity?
The planned improvements aim to increase the airport’s capacity to handle up to 26 million passengers annually by enhancing terminal facilities and operational efficiency.
At Alenda Golf Property, we’re thrilled to delve into the encouraging developments within the Spanish property market, which has impressively bounced back from the recent downturn, surpassing even the pre-pandemic figures. The resilience of this market not only highlights its strength but also signals a prime opportunity for potential investors and homebuyers.
In April 2024, house sales in Spain achieved a milestone by exceeding the sales figures from 2019 by 3.1%. This indicates not just a recovery but a significant expansion in market activity. This 91% increase compared to April last year illustrates a robust resurgence in property transactions, marking the highest rebound since the pandemic lockdowns.
Surge in Mortgage Registrations
The Spanish property market’s vitality is further evidenced by the 31.5% surge in new mortgages taken out over the past year. Prospective homeowners and investors are seizing the opportunity afforded by historically low interest rates, either to change homes or refinance. This upswing, which includes an 8.8% increase compared to April 2019, underscores a growing confidence in the market’s stability and long-term prospects.
Revival of Business and Tourism
Impact of Spain’s Reopening on Real Estate
With Spain progressively reopening its doors to business and tourism, thanks to a successful vaccination campaign and a decrease in COVID-19 cases, there’s been a noticeable release of pent-up demand. This has fueled a general increase in real estate transactions, with a 9.3% rise compared to April 2019. The revival of these sectors is playing a crucial role in propelling the property market forward.
Increased Demand for High-Quality Living Spaces
Recent trends also show a marked increase in demand for larger, more luminous, and environmentally friendly living spaces. This shift in buyer preferences is driving up property prices, especially in sought-after locations like Spain’s islands and Mediterranean coast. According to property surveyors Tinsa, house prices saw a 1.3% increase year-over-year in May, with significant rises in these prime regions.
Opportunities in the Thriving Spanish Property Market
Advice for Potential Buyers
For those considering an investment in the Spanish property market, the current climate offers a promising opportunity. Whether you’re eyeing a holiday home, contemplating relocation, or seeking a solid investment, the market dynamics are favorable. At Alenda Golf Property, we are dedicated to guiding our clients through this dynamic landscape, ensuring they can capitalize on these auspicious conditions.
Frequently Asked Questions
What makes 2024 a good year to invest in the Spanish property market?
The combination of a strong recovery in sales, increased mortgage uptake, and the return of business and tourism sectors makes 2024 an ideal time for investment.
How has the demand for residential properties changed recently?
There’s been a significant shift towards homes that offer more space, light, and green features, driving demand in specific regions like the islands and coastal areas.
What are the advantages of investing in properties in Spain’s islands and Mediterranean coast?
These regions not only offer beautiful settings but have also recorded the highest increases in property values, making them lucrative for long-term investments.
Is it still a good time to secure a mortgage in Spain?
Yes, with interest rates remaining at historical lows, it’s an excellent time to secure a mortgage for either purchasing a new home or refinancing an existing property.
How has COVID-19 affected the Spanish real estate market?
The market has shown remarkable resilience with a swift recovery and growth, surpassing pre-pandemic levels, thanks to effective health measures and economic policies.
What should potential investors know about the current state of the Spanish property market?
Investors should be aware of the market’s recovery, current trends in buyer preferences, and the overall positive outlook which makes it a ripe time for investment decisions.
Conclusion: A Resilient Market Poised for Growth
The Spanish property market in 2024 illustrates not only resilience but also a vibrant arena for potential investors and buyers. With sales surpassing pre-pandemic levels and a renewed interest in high-quality properties, the market promises substantial growth and opportunities. At Alenda Golf Property, we remain committed to supporting our clients in navigating this promising market, ensuring they make the most of every opportunity.
Greetings to all our readers at Alenda Golf Property!
Beauty of Costa Blanca with Google’s Futuristic Car ( This is a cartoon drawing )
Today, we’re taking a slight detour from our usual property-focused content to share an exciting visual treat that combines technology and the scenic beauty of Costa Blanca—captured none other by the innovative Google car.
A vibrant journey along the Mediterranean
As you know, Costa Blanca is not only famous for its stunning properties and golf courses but also for its breathtaking landscapes. What better way to showcase this beauty than through the lens of Google’s advanced mapping technology? The car, equipped with high-tech cameras and sensors, has been roaming the sunny, picturesque roads of our coastal paradise.
The image we’ve featured above is a cartoon-style depiction of the Google car in action. It’s sleek, modern, and painted in Google’s classic colors of blue, red, yellow, and green. In the background, you can see the iconic cliffs, sandy beaches, and the azure Mediterranean Sea that many of you adore and some call home.
This fusion of technology and natural beauty highlights how modern advancements can help showcase the charm of Costa Blanca in unique ways. It also reminds us of the dynamic world we live in, where technology meets tranquility, right here in our beloved region.
We hope you enjoy this artistic representation as much as we did and feel inspired by the blend of innovation and nature. For those of you interested in properties that offer views as stunning as those captured by Google’s cameras, feel free to reach out to us at Alenda Golf Property. Let’s find your dream home together!
Until next time, keep enjoying the beauty that surrounds us!
Unlock Summer Getaways: Belfast to Alicante Flights Launched by easyJet
Belfast City has officially introduced its summer flight schedule featuring a new destination: Alicante, Spain. This service is offered by the budget-friendly airline, easyJet, and operates twice a week on Thursdays and Sundays.
Enhanced Air Travel Options from Belfast
The launch of the Belfast-Alicante route significantly broadens the range of travel possibilities available from Northern Ireland. This route promises to satisfy those looking for either a cultural experience, a relaxing beach holiday or golf holidays in the charming surroundings of Spain’s Costa Blanca.
Strategic Benefits for Local Travelers
The introduction of this route is a boon for Belfast City Airport, marking the beginning of a bustling summer period. The airport continues to focus on providing convenience and choice, fulfilling a strong demand for routes to sunny destinations.
Discover Golfing Excellence on the Costa Blanca
The Costa Blanca, with its scenic landscapes and pleasant climate, is a premier destination for golf enthusiasts. The region is renowned for its world-class golf courses, including the celebrated Alenda Golf. This area attracts many golfers, especially from Ireland, due to its well-maintained greens, challenging layouts, and exceptional facilities. Alenda Golf, along with other nearby courses, offers a comprehensive golfing experience where visitors can play, stay nearby, and enjoy the local hospitality.
Easily Accessible
With a flight time of just over three hours, Alicante is an ideal spot for both quick getaways and extended golf vacations.
This accessibility ensures that golfers can spend more time on the course and less time traveling, making the Costa Blanca a favoured choice for both amateur and seasoned golfers seeking quality play in a picturesque setting. Whether you’re looking to improve your game, experience new challenges, or simply relax in a golf-centric vacation, the Costa Blanca offers an unparalleled golfing retreat.
Discover Alenda Golf: A Perfect Place to Live in Costa Blanca
Are you dreaming of a sunny Mediterranean lifestyle?
Look no further than Costa Blanca, a stunning coastal region in Spain that offers a mix of natural beauty, vibrant culture, and excellent amenities. Whether you’re considering retirement, a second home, or a fresh start, Costa Blanca has something for everyone.
Let’s explore why Alenda Golf, nestled in this picturesque region, is an ideal choice for those seeking a new home.
Why Choose Alenda Golf?
Scenic Beauty: Alenda Golf boasts breathtaking views of rolling hills, lush green fairways, and the sparkling Mediterranean Sea. Imagine waking up to the sound of birdsong and enjoying your morning coffee on your terrace overlooking the golf course.
Golf Paradise: If you’re a golf enthusiast, Alenda Golf is your haven. The 18-hole championship golf course is meticulously designed, challenging yet enjoyable for players of all levels. Tee off against a backdrop of palm trees and mountain vistas. It also boasts being within 20 minutes’ drive of more 4 Golf courses namely Font Del Yop, Bonalba, El Plantio and Alicante Golf.
Community Spirit: Alenda Golf isn’t just about golf; it’s a close-knit community. Neighbours become friends, and social events, tournaments, and club activities create a warm and welcoming atmosphere.
Convenient Location: Alenda Golf is strategically located near Alicante 15 minutes, Elche 10 minutes, and the international Alicante-Elche Miguel Hernández Airport just 12 minutes. You’re also within easy reach of sandy beaches, historic towns, and vibrant street markets.
Life in Costa Blanca
Climate: With over 300 days of sunshine per year, Costa Blanca offers a mild Mediterranean climate. Say goodbye to gloomy winters and embrace year-round outdoor living.
Cuisine: Indulge in local delicacies like paella, fresh seafood, and tapas. Costa Blanca’s culinary scene is a delightful blend of traditional Spanish flavours and international influences.
Beaches: Golden sandy beaches stretch along the coast, inviting you to swim, sunbathe, or take leisurely walks. Find Saint Juan, Santa Pola and Alicante beaches all close by. Don’t miss the stunning coves and crystal-clear waters.
Culture: Explore historic towns, visit ancient castles, and immerse yourself in Spanish culture. Festivals, art galleries, and lively markets await.
Practical Considerations
Property Options: Alenda Golf offers a variety of property types, from stylish apartments to spacious villas. Choose what suits your lifestyle and budget.
Healthcare: Spain’s healthcare system is renowned for its quality. Alenda Golf is close to modern medical facilities located at Monforte Del Cid health centre.
Education: Families will find excellent international schools in the local area, with a large private school San Alberto Magno (SAM) at the entrance to Alenda Golf. This school offers bilingual Education
Cost of Living: Compared to many European cities, Costa Blanca offers an affordable cost of living.
Supermarket: The local Dicost Supermarket has everything one could need, including many well-known European brands and specialities. The best freshly made bread and vegetables, and salads in the area. It is owned by two of the nicest customer focused entrepreneurs you will ever have the pleasure of meeting.
In Summary
Discover the sun-soaked lifestyle of Costa Blanca at Alenda Golf, a serene paradise offering stunning golf course views and a vibrant community spirit. Whether you’re a golf enthusiast or just seeking a tranquil home with access to sandy beaches, historic towns, and modern amenities, Alenda Golf is your ideal choice. With properties ranging from stylish apartments to spacious villas, and easy access to top-notch healthcare and international schools, life at Alenda Golf promises a fresh, new lifestyle with every sunrise.
Interested in making Alenda Golf your new home?
Contact us today to explore your options and start a new lifestyle!
Call Alenda Golf Property for a chat + 34 649 649 018 or email us at info@alendagolfproperty.com
Foreigners pay a record price to buy homes in Spain
Non-residents paid over €2,700/m2 in the second half. Record-breaking transactions in Asturias and purchases by by Colombians
Foreigners spend an unprecedented amount when buying a home in Spain. According to data from notaries, non-residents paid an average of €2,715 per square metre in the second half of 2023, 6.1% more year-on-year and the highest figure on record.
This price has boosted the average paid by foreigners as a whole (residents and non-residents), which stood at €2,175/m2 and returned to 2008 levels after growing 4.1% year-on-year; as well as the total average price paid for homes in Spain, which reached €1,712/m2 including foreigners and Spaniards, with an increase of 2.1% year-on-year.
If we look at the total number of transactions, the Valencian Community continues to lead the Spanish ranking at 18,919, representing 29.94% of the total. In other words, three out of every ten homes purchased by foreigners in Spain are in this region.
Experts highlight several factors behind this growing interest. For example, the region has a large, stable residential demand, with primary residences, second homes and both Spanish and foreign clients; affordable prices compared to other locations; high profitability for investors, good transport links and the appeal of Mediterranean living.
The high proportion of foreign buyers in this community, especially in Alicante, has been the main driving force, as it is “a profile with a high level of activity, which is less sensitive to prices and interest rate rises than Spanish buyers”.
British continue to lead
According to the notaries, the group of foreigners who bought the most homes was British, which accounted for 9.7% of the total number of transactions (6,155), followed by Moroccans (7.14%) and Germans (7.11%). “The group of nationalities that includes the rest of foreign buyers from outside the EU accounted for 11.6%, thus continuing the upward trend shown in previous semesters,” the notaries emphasise.
Transactions by Norwegians (-30%), Germans (-25.8%) and Swedes (-25.1%) recorded the largest year-on-year decreases, while Ireland (12%), Ukraine (9%) and Russia (4.7%) were the countries with the largest increases in sales.
The British were the main buyers in the Valencian Community, Murcia and Andalusia, the Germans in the archipelagos, Galicia and Asturias, Americans in La Rioja and the Basque Country, and the Chinese in Madrid.
Call Alenda Golf Property for a chat + 34 649 649 018 or email us at info@alendagolfproperty.com
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