Spanish property continues to rise rapidly in price

Especially the new-build segment. According to the National Statistics Institute, in the second quarter of 2024, property prices as a whole rose by 7.8% compared to the same period in 2023.

But this is nothing compared to the prices of new homes: their cost soared by 11.2%. Such a rapid rise in prices has not been seen since 2007, when the Spanish property market was inflated by a bubble that ended in collapse.

What's behind the rapid rise in property prices in Spain?

1. Low interest rates: The European Central Bank's rate cuts have made mortgages more affordable, stimulating demand for property.

2. Strong demand: Spain is a popular tourist destination and an attractive place to live for foreigners, creating additional demand for housing.

3. Limited availability of new homes: New home construction is slow, limiting supply and pushing up prices.

4. Inflation: Rising prices for building materials and other goods and services also affect the cost of real estate.

5. "Domino effect": Rising prices on the secondary real estate market stimulates the growth of prices for new buildings, creating a domino effect.

Mercury Group: your reliable partner in Spain

Are you considering Spain as a permanent residence or as a profitable investment?

Contact us and we will promptly select investment-attractive apartments in Spain for your budget: both for personal residence and for rent, and we will show specific calculations of profitability for them!