In this episode of ‘La Piedra’ Sean and Mark look back at key market trends in 2024 with the benefit of Sean’s experience at the coal face of property sales on the Costa del Sol, and Mark’s analysis of the public data. “La Piedra” is a monthly podcasts featuring Cloud Nine Spain Managing Director Sean Woolley and Mark Stücklin (of Spanish Property Insight) discussing the Spanish property market from different perspectives.
The discussion focuses on market trends during the first nine months of 2024, with a particular emphasis on Q3 data.
Key Themes:
- Booming Spanish Property Market: The Spanish property market has experienced robust growth in 2024, contrasting with declining markets in neighbouring countries like France and Germany. Sales in Spain increased by 10% in the first nine months, with Q3 showing a year-on-year increase of 16%.
- Malaga’s Accelerating Growth: Malaga Province, particularly the Costa del Sol, has seen even more pronounced growth, reaching 18% in Q3, suggesting an accelerating trend towards the year’s end.
- Strong Domestic Demand: Contrary to expectations, the boom is primarily driven by local (Spanish resident) demand, which grew by 20% in Q3. This suggests a healthy and confident domestic economy contributing to the surge.
- Foreign Buyer Trends: While foreign buyer activity increased by a more modest 3% during the first nine months, Q3 saw a notable surge of 15% in Malaga and 7% in Spain overall. The podcast highlights a significant increase in non-resident foreign buyers (20% growth in Malaga during Q3), primarily seeking second homes and holiday properties.
- Factors Influencing Demand: The discussion explores several factors potentially driving the market boom:
- Post-pandemic lifestyle changes and priorities.
- Increased remote work opportunities.
- Geopolitical factors (e.g., the war in Ukraine) driving demand from Eastern Europe and potentially contributing to “safe haven” investments.
- Political and economic uncertainty in other countries, prompting relocation to Spain.
- The Spanish Golden Visa scheme (now ending) attracting non-EU investors.
- Challenges in the Spanish rental market potentially pushing individuals towards homeownership.
- Rising Prices and Concerns of a Bubble: Property prices in Spain have seen significant increases, reaching 6% in the first nine months and 8% in Q3. In Malaga, the average price rose by 9% for both periods. While the podcast guests do not currently see signs of a bubble, they acknowledge that sustained double-digit growth could become problematic, potentially leading to overpricing and a cooling market.
