Living, market data - Figures second quarter 2024 Spain

Access to housing continues to be one of the main challenges of the residential market in Spain, mainly affecting households with lower incomes and certain geographical areas. However, the beginning of the decline in interest rates and the increase in household purchasing power have given a small respite to the effort rate, which is 0.6 p.p.p lower than the previous year (36.1%), a path that we expect to continue in the coming quarters.

The residential market for sale is in a phase of the real estate cycle of moderate slowdown, but shows signs of slightly greater dynamism than expected. Demand has grown by 1.8% in year-on-year terms, with 161 thousand homes sold in the first quarter, thanks to the good pulse of the labor market and sales by foreigners. The price of housing continues to boom (6.3%), highlighting the performance of new construction (10.1%) compared to second-hand (5.7%).

After a more moderate start to the year in terms of investment, the Living sector experienced a significant boost in the second quarter to become the first asset class in Spain, boosted by the more alternative segments (Flex Living and student residences) and the affordable product. The Living sector recorded an investment volume of €1,497 million during the first six months of the year, accounting for 27% of the total transacted in Spain, a drop of 8% compared to the same period in 2023.

The Flex Living continues to rise and was the star product of the Living sector in the first half of the year with 708 million euros transacted, which represents 47% of the total. Senior Living, on the other hand, despite being the least mature product in the sector, registered the first transaction of the year in Alicante, the province with the most foreign seniors in Spain (19% of the total).