Real Estate Trends in Spain: A December 2023 Overview
As we delve into the dynamics of Spain’s real estate market, December 2023 stands out with noteworthy trends, especially in the vibrant locale of Marbella. Here’s a comprehensive snapshot of key indicators and shifts shaping the real estate landscape:
Marbella Property Prices:
In December 2023, the average property price in Marbella reached 4,461 euro/m2, marking a historical maximum. The year witnessed a substantial annual price rise of +12.1%, reflecting the robust demand and desirability of this sought-after location.
Foreign Demand in Property Transactions:
The demand from foreign buyers constituted 14.4% of the market in December 2023, surpassing the previous year. Germans maintained their lead as the primary foreign buyers, representing 13.0% of the foreign demand. Despite a slight dip, they remain a significant force, consistent with the trend observed in recent years.
Foreign Demand in Rental Market:
The foreign demand in the rental market reached its highest point in four years, accounting for 13.4% in December 2023. Germans led this segment as well, representing 11.3% of the foreign demand.
Evolution of the Market – December 2023:
Spain experienced a growing demand pressure, particularly in the rental market. The available supply remained below the levels of the previous year, standing at 4.4% in the sales market and 0.8% in the rental market. Escalating demand coupled with limited stock continued to propel both sales and rental prices upwards. In December, sales prices rose by 8.1% year-on-year, while rental prices increased by 10.1%.
Stock Indicator and Price Trends:
The stock indicator for the rental market is approximately five times lower than that of the sales market, emphasizing the scarcity in rental offerings. This scarcity is a driving force behind the upward trajectory of rental prices, which reached 12.1 €/m²/month, reflecting a 10.1% increase from the previous year.
In summary, the Spanish real estate market, and particularly Marbella, is characterized by strong demand, limited supply, and consistent price growth across both sales and rental sectors. The influence of foreign buyers, notably from Germany, continues to shape and energize the market. As we move into the new year, these trends provide valuable insights for stakeholders navigating the dynamic real estate landscape in Spain.