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The housing market on the Costa Blanca is preparing for increased demand and further price increases.
Recently, with the expectation of interest rate cuts, various forecasts have been updated, including one from the real estate services firm Solvia.
Rise in Activity
According to its latest study, property sales are expected to decline this year but are projected to rise next year, with prices anticipated to increase by around 3 per cent in both 2024 and 2025. The report also predicts a rise in new building permits and rental activity.
Solvia’s report notes that in the second quarter of 2024, Spain’s real estate market saw a decrease in the number of transactions and new mortgage contracts, along with a slight increase in purchase prices and a significant rise in rental costs. This trend is expected to continue for the rest of the year.
2025 Forecast
The forecasts indicate a year-on-year decline in transactions of between 4 per cent and 5 per cent by 2024. However, Solvia expects a rebound in demand in 2025, projecting a growth in sales and purchases of between 2 per cent and 3 per cent.
Consistent Demand
Juan Ramón Prieto, Director of Operations at Solvia, states that the ongoing shortage of properties continues to pressure the market. He notes that this, combined with consistent demand, will support the upward trend. Major valuation agencies and economists also foresee a rise in house prices in the upcoming months.
In terms of the rental market, the forecast suggests an average rent increase of over 10 per cent this year due to high demand and limited supply, which is further affected by price caps.
