Spain’s housing market is surging, with home sales up by 41.5% in September, marking the highest levels since the 2007 real estate boom. This growth is fuelled by reduced interest rates and strong demand, signalling a robust recovery.
The sale of homes in Spain witnessed a significant 41.5% increase in September, marking the largest rise since August 2021. According to the National Statistics Institute (INE), the 61,887 transactions recorded in September represent the highest monthly total since July 2007. This resurgence in the sale of homes brings the market back to levels reminiscent of the pre-2008 real estate boom.
Key Drivers of Growth
Experts attribute the growth to reduced interest rates and pent-up demand from buyers. After three consecutive months of increasing sales, the sector shows sustained recovery, with a 25.1% jump from August to September. Over the first nine months of the year, home sales grew by 3.1%, reinforcing the trend of a market rebound.
New Construction vs. Second-Hand Properties
Sales of new construction properties led the charge, growing by 54.9% year-on-year—the largest increase since June 2021. A total of 12,531 new homes were sold in September, the highest figure since January 2014. Meanwhile, second-hand homes, comprising 80% of all transactions, saw a 38.4% rise, reaching 49,356 sales.
Breakdown by Housing Type
Free-market housing accounted for 57,179 transactions in September, showing a 41.3% year-on-year increase and representing 92% of total sales. Meanwhile, protected housing—homes subsidised for affordability—rose by 43.6%, with 4,708 transactions recorded.
Regional Performance
Regional disparities reveal varied growth across Spain. Extremadura led the way with a staggering 79.3% increase in home sales, followed by the Basque Country (67.4%) and Asturias (57.3%). However, regions like Navarre (18.0%), the Balearic Islands (18.5%), Murcia (32.2%), and Catalonia (33.8%) reported growth below the national average.
Rising Prices Accompany Increased Sales
The sale of homes also coincided with rising property prices, which have been increasing for four consecutive quarters. In the third quarter, prices climbed by 2.8%, nearly a percentage point higher than the previous quarter. Year-on-year, prices rose by 4.4%, reflecting ongoing demand pressures. The second quarter had shown a more modest annual increasein sale of homes of 2.6%.
A Resilient Real Estate Market
The significant rise in the sale of homes highlights Spain’s resilient real estate market amid evolving economic conditions. As the sector navigates rising prices and varying regional trends, the demand for housing signals a robust recovery. With new construction leading growth and second-hand properties retaining their dominance, the market shows signs of both expansion and stabilization.
The data underscores the critical role of interest rates and demand in shaping Spain’s housing market, offering optimism for sustained growth in the months ahead.
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.
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