After one of its best years ever, Spanish market has shown signs of slowing down as we come to the end of 2022. Both sales and prices appear to be cooling off slightly, although figures remain high. With clouds still on the global political and economic horizon, what can we expect from the Spanish property market in 2023?
Although analysts differ in their predictions for figures for sales and house prices, they’re unanimous that both will be lower compared to 2022.
But before we move to the Spanish property market in 2023, the backstory over the last few months. Readers of our blog will recall that the first seven months of this year saw record sales and consistent price rises. The late spring and early summer were particularly busy as buyers rushed to purchase before interest rates rose even further.
The latest figures point to an 8% increase in property prices this year, although some parts of Spain have seen much higher rises. For example, on the Costa Calida they went up by 11% in the year to Q3, with resale prices experiencing a 13.5% uptick.
While experts agree that house prices will fall in Spain in 2023, they differ in the amount. Pisos.com predicts that prices will be 1 to 3% lower, although with the caveat that they will see negligible changes in the busiest markets in Spain. ING forecasts a 1% rise in 2023, and BBVA Research expects the increase to be around 2%.
Nevertheless, prices look certain to rise below inflation, resulting in lower prices all round.
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