Property prices in Spain 

Data released by Spanish notaries at the end of 2023, indicates that Spanish property prices dropped slightly by 1% at the end of last year. Our agents agree that the market is back to ‘business as usual’ after the post-covid boom, with house prices levelling off. 2024 is likely to see a shift from it being a vendor’s market, back to a buyers market, with vendors having to set more realistic prices from now on.

Property prices dropped more significantly in Catalonia (-1.4%) in 2023 according to the Spanish Statistical Office and the Canaries (-3.3%). While popular destinations on the Costa del Sol, such as Estepona, saw an average rise in property prices of 4.6%, Valencia region prices have increased by 5% and the Balearics have seen prices rise by 9.9%. 

The most-loved Spanish cities for expats in 2023

Internations’ expat city rankings for 2023 was released at the end of last year and they were dominated by Spanish cities. Málaga was voted number one based on quality of life, affordable living and friendly locals. Alicante was number two and Valencia was not far behind at number three, celebrated for its great healthcare options and affordable housing.

Not to be outdone, Madrid and Barcelona popped up in the 2023 Quality of Living Index by the consulting firm Mercer, also released late last year. The index examines the practical aspects of daily life for residents in 450 cities. Madrid was ranked 46th, and Barcelona came in at number 48. Vienna was number one for the third year in a row. 

Good news for holiday home owners: Spain sees surge in overnight stays in 2023

Recent data released by the Spanish Statistical Office reveals that overnight stays in non-hotel tourist accommodations, including holiday homes, campsites, rural tourism accommodations, and hostels surged by 7.9% in November/December compared to the same period last year.  During November, the total number of overnight stays in Spain exceeded a whopping 6.4 million, and on average, travellers enjoyed 4.5 overnight stays during their visit to Spain. This trend isn't merely a short-lived phenomenon. Over the first 11 months of 2023, overnight stays saw a 4.1% increase compared to the same period in 2022, indicating a sustained interest in non-hotel accommodations. This spike in popularity will be music to the ears of holiday home owners in Spain, looking to make money on renting out their property. 

New build projects on the rise again on the Costa del Sol and Costa Blanca 

A shortage of materials and an increase in labour costs had slowed the new build property market in Spain for a while, post-Covid, but all the signs point towards a resurgence in 2024. Richard Hart, General Manager of Medland Spain Estate Agents, who specialise in new build properties, told us “lately we've been seeing a lot of new developments on the Costa del Sol, where you tend to see larger projects, apartments mainly.” He added that the new build market is “getting more stable, but for a period of time we were changing property prices on a weekly basis,” due to fluctuating building costs. Lucas Fox, the international estate agent, currently have 295 new build projects in Spain on their books, 30% of which are located on the Costa del Sol, 22% on the Costa Brava and 18% on the Costa Blanca.

Spanish government to persevere with challenging the 90/180 day residency rules 

The Spanish government will continue to lobby the European Union to overturn the current 90 day limit on British holiday home owners looking to stay in the country, a law that was implemented after Brexit. This comes after a decision by a French court rejected the proposed amendment to the French immigration law, which would have allowed British homeowners in France to spend 180 days a year in two blocks of two months each, on the grounds of unconstitutionality. Unlike France, which sought to address the issue domestically, Spain is taking a diplomatic route, engaging in discussions with Brussels to effect change. If the changes are accepted by the EU, it would be an absolute game changer for Brits looking to buy property in Spain.