MADRID, 24 Nov. (EUROPA PRESS) –
The average house price will drop by 5% in 2024, mainly due to the “sharp” drop in demand for home purchases that will be recorded in the first half of the year, according to donpiso forecasts published this Friday.
In this sense, the real estate network predicts that the political and economic context in Spain will lead to year-on-year decreases of over 10% in the number of home sales in the first half of 2024.
The deputy general director of donpiso, Emiliano Bermúdez, explains that this “downward” trend is a “logical” consequence of several factors, among them, the rise in the cost of life and mortgages; the lack of security and economic and legal stability for real estate investment as a consequence of the Housing Law and the formation of an “unsound” Government; and the cyclical evolution of the housing market, which in the periods of 2015-2019 and 2021-2022 experienced “notable” increases.
According to donpiso, the most dynamic markets will continue to be the large capitals, such as Madrid, Barcelona, ??Malaga, Valencia, Seville or Bilbao, as well as their metropolitan areas, and the coasts of the Valencian Community, Andalusia and Murcia.
Bermúdez points out that now Spain is in that phase in which the market is contracting and housing prices are stabilizing, “so a deflationary process has not been registered in the second half of the year.” However, he estimates that housing prices, which rose around 3% last year, will “probably” close the year with an increase of less than 3%.
Donpiso also details that at this time the market enjoys “a certain balance” between supply and demand in the segment of the purchase and sale of real estate despite inflation, which is why there has been a drop in the number of purchases and sales and the price. of housing, although in a “less notable” way than expected.
Along these lines, Bermúdez regrets that the measures adopted regarding rentals following the entry into force of the Housing Law “do not encourage the growth of investment in the real estate market.”
