Property sales in Spain dropped by 11% in 2023

The purchase of homes in Spain decreased by 11.2% in 2023 compared to the previous year, and the number of new mortgages dropped dramatically by 21.3%, according to data released today (Thursday) by the General Council of Notaries.

The average price per square metre increased by 1.5% nationally on an annual basis, reaching 1,640 euros, with notable increases in Navarra (+13.7%), Castilla la Mancha (+8.3%), and La Rioja (+7.3%).

During the last quarter of the year, the average price per square metre experienced its highest increase, with a 2.7% year-on-year rise, while in the first quarter, there was a modest decrease of 0.2%.

In Spain, the number of home sales decreased by 11.2% annually, totalling 640,451 transactions. From the first to the third quarter of 2023, there was a year-on-year decline of 15.6%, the most substantial drop of the year. In the fourth quarter, there was a more moderate year-on-year decline of 4.8%, mitigating the annual setback.

Regarding the type of housing, apartment sales decreased by 10.5% year-on-year, reaching 492,498 units, while single-family home sales experienced a more significant decline, dropping by 13.6% year-on-year to 147,953 units.

Apartment prices rose by 2% compared to 2022, reaching 1,830 euros per square metre, while the average price for single-family homes was 1,287 euros per square metre, reflecting a 1.3% decline.

In December alone, home sales dropped by 5.2% compared to December 2022, reaching 57,392 units. The approval of mortgage loans for home acquisition decreased by 8.1%, totalling 24,370 operations, while prices increased by 5.8%, reaching 1,687 euros per square metre.

Home sales decline region by region:

Home sales in 2023 decreased in 16 regions of Spain, which accounted for 97.8% of transactions, with only Asturias experiencing a 1.4% increase.

The decline was in double digits in the Balearic Islands (-19.9%), Canary Islands (-16.8%), Madrid (-16.2%), Basque Country (-15.7%), La Rioja (-14.5%), Catalonia (-12.8%), and Andalusia (-12.4%).

On the other hand, Cantabria (-8.9%), Aragon (-8.9%), Extremadura (-8.4%), Castilla y León (-8.1%), Valencia (-7.9%), Galicia (-7.8%), Murcia (-5.2%), Castilla-La Mancha (-4.6%), and Navarra (-2.5%) experienced less pronounced declines.

Prices Rise in all regions except the Balearic Islands and Aragon:

Except for the Balearic Islands and Aragon, home prices increased in all autonomous communities in 2023, reducing by 0.4% and 0.3%, respectively.

Navarra saw the highest increase, reaching double digits at 13.7%, followed by Castilla la Mancha (8.3%), La Rioja (7.3%), Valencia (4.9%), Madrid (4.6%), Cantabria (4.5%), Andalusia (3.3%), Canary Islands (2.9%), Galicia (2.6%), Basque Country (2.4%), and Murcia (2.0%).

Average prices per square metre exceeded the national average in the Balearic Islands (3,186 euros), Madrid (2,774 euros), Basque Country (2,573 euros), Catalonia (2,012 euros), and the Canary Islands (1,821 euros).

Decrease in the number of new mortgages:

New mortgage loans for home acquisition decreased by 21.3% in 2023, totalling 280,340 operations, with the average amount decreasing by 3.1% annually to 148,592 euros.

Additionally, 85,835 operations were undertaken for other purposes, marking a 19.5% decrease, resulting in a total of 366,175 new mortgage loans in 2023, 20.9% less than the previous year.

New mortgage loans for home acquisition decreased in all autonomous communities. However, the declines were more significant than the national average in Cantabria (-25.5%), Catalonia (-24.6%), Madrid (23.1%), Castilla y León (22.3%), Murcia (-21.8%), and Andalusia (-21.7%).

The average amount of new loans for home acquisition ranged from 221,023 euros in Madrid to 92,128 euros in Murcia.

The annual evolution showed increases in four regions, with Asturias leading with a 3.8% increase. On the other hand, decreases were observed in thirteen communities, with La Rioja (-15.0%), Balearic Islands (-7.0%), and Cantabria (-6.5%) experiencing notable declines.