Housing prices will stabilize

Housing prices will stabilize

“Barcelona, ​​Girona, Santander, Ibiza… these are some coastal areas where I would like to find some properties.” Pablo SernaCEO of TM Grupo, which has a turnover of about 300 million this year, Optimistic about the year that is about to begin. “If there is a good product and its price does not fall, it will be sold. There will be no local or regional elections, which will mean less uncertainty, and interest rates have reached the ceiling. Conditions will be better. He explained that for 2025 and 2026 We will wait for the new housing plans.

The Mediterranean coast is the main focus of TM’s attention, whose acronym became known for its sponsorship of the Valencia football team. Besides the major cities, the vast majority of the provinces – with the exception of Castelo – that extend from the border with France to Cádiz, as well as the Basque Country and Navarre, represent one of the two Spanish provinces where the housing sector is located. The other: Spain abandoned from the center of the peninsula surrounding Madrid.

Two speeds

The price difference per square meter between the capitals of the provinces where the most expensive and cheapest housing is located can multiply by two or even three times.. The situation will remain. “There are two speeds” to prices on the market, says Paloma Arnaiz, secretary general of the Spanish Value Association. From UVE appraisers, they only expect significant price increases in 2024 in tourist areas.

Spain at the beginning of the century has entered history and will never return. In 2007, the number of homebuilder visas broke a record that will never be seen again: 641,000.. This year the number will not reach 90,000. With the exception of some very specific neighborhoods in Madrid and Barcelona, Average prices have yet to reach records in more than 15 years. According to CaixaBank, 2023 is expected to end the year with a 3.3% increase in house prices, which they estimate could decline to 1.4% in 2024. The number of sales transactions, according to AEV, will end this year between 550,000 and 650,000.

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adjust the price

“The solvency of households, the maintenance of savings rates, and buying by foreigners with limited supply, led to rising prices making all the forecasts bad,” sums up Vicence Hernandez, CEO of Technotramit.

Marcel Brunera, president of Guinot Brunera, notes that there has been “an adjustment in prices due to the economic scenario and the effects of raising interest rates in 2023.”. The year 2024 coincides with being a better year in terms of investment. According to Prunera, tension will continue in areas with high demand and low supply in large urban areas.

Ricard Garriga, owner of Triotica real estate brokerage, provides other numbers. It is estimated that the mortgage industry will remain stable (1,500 mortgages closing daily by 2023 compared to 1,800 in 2022), and banks are expected to offer fixed mortgages at 3% or less by the end of 2024.. This week it became known that the mortgage balance in Spain fell to 497,000 million euros in October, the lowest level since April 2006. “Household indebtedness is improving,” says Cristina Arias, Director of the Studies Service at Tensa. Arias agrees with the rest of the experts who In 2024, the market will tend to stabilize on the demand side and prices may rise slightly. At least the average, because every neighborhood and street has a story.

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