Rocketing home sales figures 'not seen since 2007'

SALES of residential homes in Spain are at their highest since the 'boom' of 2007 after a bumper autumn that has seen the greatest year-on-year rise since the pandemic.

According to the National Statistics Institute (INE), a total of 69,418 properties were purchased in October – the most recent full month for which figures are available – a result not seen in over 14 years.

This represents an annual increase of 51.3% - the highest since 2021.

October 2023 closed with 45,879 residential property sales, INE figures show.

Property purchases were already at an all-time high in September this year, with 61,887 homes changing hands, although the following month saw this number shoot up by 12.2%.

As yet, Spain's housing market has not reached its outright record of 75,883 in one month, which was registered in May 2007 – a time when property prices were at their highest in history and demand was soaring.

Whilst the majority of homes sold in October were pre-owned, the number of new builds bought saw a giant leap from those of 12 months earlier – the 16,224 sales, representing an 83.4% annual increase, outstripped every month on record since February 2013.

Pre-owned homes saw a 43.6% jump in sales, with 53,194 changing hands – again, more than in any other month since 2007.

Eurozone rate cuts spark home sales

Spanish home purchases have increased in number for the past four consecutive months, following a dip in 2023 and early 2024 as a result of the Eurozone interest rate, or Euribor, rocketing from below zero to over 4% in nine months.

After averaging 3.311% throughout 2024, the Euribor is expected to close the year on 2.461% after the most recent reduction – announced for December – of 0.25 percentage points.

But the European Central Bank's (BCE's) decision to cut rates for the fourth time this year has triggered greater confidence amongst homebuyers, according to industry professionals.

Figures show Spain's 'financial health'

“These sales figures are great news – not just for the property sector, but also for the economy in general,” says a spokesperson for the General Council for Official Estate Agency Colleges (COAPI).

“Home purchases are a key indicator of the macro-economy when analysing a country's financial health and household solvency."

"[These data] clearly show there is significant pent-up demand caused by interest rate rises which, now, in the second half of the year [following rate cuts] has led to [people] taking the decision to buy."

“Whilst it is unlikely that subsequent year-on-year rises will be of the same magnitude, we do anticipate that this positive trend will continue for the forthcoming months against a backdrop of economic growth in Spain, a decreasing Euribor, and a stable level of demand among both national and overseas buyers.”

A shrinking homebuying market turned a corner in July this year, when the BCE began to reduce rates – sales rocketed by 19.4%, hailing the start of a rapid recovery which has, thus far, continued.

Where have the most properties been sold?

The biggest rises in home sales in October were seen in the northern regions of La Rioja (88.2%) and Cantabria (81.3%), followed closely by their neighbouring communities of Asturias and the Basque Country, INE data show.

Even at the opposite end of the scale, the smallest increases were still significant: Murcia, with 13.9% more sales than in the previous month, comes at the bottom of the list, followed by Navarra (28.5%) and Extremadura (35.8%).

In terms of numbers of properties purchased, the southern region of Andalucía came out top with 13,549 homes sold, followed by the east-coast region of the Comunidad Valenciana (10,984), its northern neighbour Catalunya (10,925), and the wider Madrid region (8,290).

If you're looking for insights into what the Spanish property market might look like in 2025, we recommend reading our article Spanish Property Market in 2025: Prices, Trends, and Opportunities.