2023-07-26-莱坊-Spain_PRS_Snapshot_Q2_2023_2页_684kb

Q2 2023 Spain Real Estate Market Summary

Core Content

The Q2 2023 report provides an overview of the current state of the real estate market in Spain, focusing on rental prices, household income, wealth growth, and investment trends. The data is compiled by experts at Knight Frank Spain and reflects real market conditions and trends.

Key Market Indicators

• Rental Effort Rate: The effort rate to rent a home in Spain reached 30% of household income at the beginning of the year. This rate varies significantly by province:

  • Malaga: 47%
  • Baleares: 42%
  • Barcelona: 37%
  • Teruel: 16%

• Average Rental Price: In June 2023, the average rental price in Spain reached a new historical high of 11.8 €/m², representing a 9.2% year-on-year increase.

• Gross Return on Rental Housing: The gross return on housing rental in Spain was 3.4% in Q1 2023.

• Consumer Price Index (IPC): The IPC showed moderate growth, increasing by 1.9% in June 2023, which is over four percentage points lower than the rate recorded at the beginning of the year.

• Household Wealth Growth: Household wealth increased by approximately 3% in Q1 2023, with both net financial wealth and real estate wealth seeing growth.

• Gross Disposable Income: Households' gross disposable income rose by 10% year-on-year in Q1 2023, reaching 202,000 million euros.

Investment Trends

• Q2 2023 Investment Volume: The investment volume in Q2 2023 was around €200 million, a significant decline of almost 70% compared to the same period in 2022.

• Turnkey Projects: Turnkey projects dominated the investment landscape, accounting for 55% of the total investment volume in the first half of 2023.

• Top Investment Locations:

  • Madrid: Accounted for almost 50% of the total investment in the first half of the year.
  • Barcelona: Accounted for over 25% of the total investment.

• Top Investment Deals in Q2 2023:

  • Valencia: €66 million for 209 apartments, purchased by Savills IM from Neinor Homes.
  • Mallorca: €52.3 million for 830 apartments (700 for rental), purchased by SEPES from Confidencial.
  • Badalona: €41 million for 129 apartments, purchased by CBRE IM from Culmia.

Data Sources

• Consumer Price Index (IPC): Data from the Spanish National Institute of Statistics (INE).
• Household Wealth: Data from the Bank of Spain.
• GDP and Gross Disposable Income: Data from the National Statistics Institute (INE).
• Rental Effort Rate and Average Rental Price: Data from Idealista.
• Investment Volume: Data from Knight Frank Research and other market sources.

Conclusion

The Spanish real estate market continues to show signs of resilience and growth, with rental prices reaching record highs and household wealth increasing. However, investment activity has declined significantly compared to previous years, with turnkey projects leading the way. Madrid and Barcelona remain the most attractive markets for investment, while regions like Malaga and Baleares have the highest rental effort rates. The data highlights the importance of understanding local market dynamics and the role of household income in shaping rental affordability.