2024-08-13-莱坊-Spain_PRS_Snapshot_Q2_2024_2页_622kb

Q2 2024 Spain Real Estate Market Summary

Core Content

The Q2 2024 report from Knight Frank Spain provides an overview of the current state of the real estate market, focusing on rental prices, household economic indicators, and investment activity. The data reflects both the challenges and opportunities within the sector, with a particular emphasis on rental demand, inflation trends, and the potential for growth in secondary cities.

Key Market Indicators

• CPI (Consumer Price Index):
  In June 2024, the CPI in Spain stood at 3.4%, a slight decrease from May's figure. Bankinter forecasts inflation to remain around 3.4% for the rest of the year and is expected to drop to 2.3% in 2025.

• Net Financial Wealth:
  Households' net financial wealth reached a new record of 2.15 trillion euros at the start of 2024, marking a 10% increase compared to the same period in 2023.

• Gross Disposable Income:
  Gross available household income started the year at around 230 billion euros, representing an 8% increase from March 2023.

• Rental Effort Rate:
  The rental effort rate in Spain reached 34% in Q1 2024, showing a steady increase. Provinces like Málaga and the Balearic Islands had particularly high rates, at over 50% and around 46%, respectively.

• Average Rental Price:
  The average rental price in Spain reached 13.4 €/sqm in June 2024, up by 13.2% compared to June 2023.

• Gross Return on Housing Rental:
  The gross return on housing rental for Q2 2024 was 3.4%.

Transaction and Investment Trends

• Transaction Volume (H1 2024):
  The total investment volume for the first half of 2024 amounted to €385 million, which is below the semiannual average of recent years but shows potential for recovery.

• Top Investments in Q2 2024:

  • €140M in Madrid, acquired by Savills IM from Greystar. The deal involves 455 apartments in a large BTR project in Méndez Álvaro, located in the Arganzuela district near Atocha station.
  • €4.4M in Various locations, acquired by TuTechô.
  • €3.4M in Madrid, acquired by Inhome PP.

Price Trends in Key Cities

• The average rental price continues to rise, with secondary cities showing strong growth. In June 2024, Valencia and Cáceres led the increase with around 20% year-on-year growth.
• Santa Cruz de Tenerife and Madrid also saw increases of approximately 18%.

Secondary Cities' Potential

• Secondary cities are gaining traction in the real estate market, driven by increasing demand and competitive pricing.
• This trend is evident in the significant price increases observed in cities such as Valencia and Cáceres, indicating a growing interest in these areas for investment and living.

Key Contacts

• Carlos Zamora - Partner, Head of Residential:
  +34 600 919 041
  carlos.zamora@es.knightfrank.com

• Elaine Beachill - Director, Head of Living Retail & Hospitality:
  +34 600 919 016
  elaine.beachill@es.knightfrank.com

• Daniel Caprarin - Head of Research, Marketing & PR:
  +34 600 919 087
  daniel.caprarin@es.knightfrank.com

Conclusion

The Spanish real estate market is showing resilience despite the current economic conditions, with rising rental prices, strong household financial performance, and increased investment activity. While the transaction volume for H1 2024 is below historical averages, the potential for growth in secondary cities and the ongoing demand for rental properties suggest a positive outlook for the coming months.