Are we facing a real estate boom with solid foundations?

The performance of the residential market is taking Spain to levels of sales and purchases that are practically at numbers not recorded since 2007. Home sales prices are rising due to strong demand - driven in part by the fall in interest rates, which facilitates mortgage financing capacity and by the increase in the immigrant population - and insufficient supply to satisfy it.

Spain produces around 100,000 new-build homes per year, when the estimated demand is twice as high. This will continue to cause new build prices to rise sharply each year and the part of the unsatisfied demand is transferred to the second hand, where prices also increase, as pointed out by the 'Grupo Tecnitasa'.

The President of DEXTERYeidy Ramirez understands that "unlike the market situation more than 15 years ago, today access to credit is more controlled, more professionalised, with a very solid risk analysis and fundamentals that give security to transactions"..

The experts' forecasts anticipate further price increases during 2025, with rises of around 7% in new housing and between 3% and 5% in second-hand housing, in both cases higher than inflation. Price stress is expected to be most concentrated in Madrid, Barcelona and the Mediterranean coastal cities.