2023-10-27-莱坊-Spain_PRS_Snapshot_Q3_2023_2页_664kb

Q3 2023 Spain Real Estate Market Summary

Core Content Overview

The Q3 2023 report provides an analysis of the residential rental market, consumer price index (CPI), household financial wealth, and investment trends in Spain. It highlights the ongoing growth in rental prices, the moderation in inflation, and the steady increase in household net financial wealth. Additionally, it outlines the investment volume and notable transactions during the quarter.

Key Market Indicators

• Average Residential Rental Price:
  In September 2023, the average rental price in Spain was €11.8 per square meter, marking a 9.3% year-on-year increase.

• Consumer Price Index (CPI):
  The CPI in Spain increased to 3.5% in September 2023, a significant drop from the 11% recorded in the same period in 2022. Forecasts suggest a more moderate CPI for the coming year.

• Household Net Financial Wealth:
  The net financial wealth of households increased by 3.1% in the second quarter of 2023 compared to the previous quarter.

• Gross Disposable Income:
  In June 2023, the gross disposable income of households rose by 12% year-on-year, reaching a total of 250 billion euros.

• Rental Burden Rate:
  The overall rental burden rate in Spain remains at 31%. The highest burden rate is observed in Málaga (49%), followed by the Balearic Islands (48%) and Barcelona (41%). Ciudad Real has the lowest burden rate at 15.4%.

• Gross Return on Housing Rental:
  The gross return on housing rental in Q2 2023 was 3.4%.

Investment Trends

• Q3 2023 Investment Volume:
  The total investment volume in Spain for Q3 2023 was approximately €300 million, which is €470 million less than the Q3 2022 figure.

• Year-to-Date Investment:
  The cumulative investment for the first nine months of 2023 is around €860 million, slightly below the historical record of 2022 but expected to align with the 2019-2021 average by year-end.

• Turnkey Projects:
  Turnkey projects accounted for nearly 50% of the total investment volume in Q3 2023.

• Top Investment Locations:
  Madrid was the top location for transactions and investment, with it accounting for 55% of the total investment volume.

Notable Transactions

• Bilbao Transaction:
  A significant transaction in Q3 2023 was the sale of two new turnkey residential towers in Bilbao by Urbas to M&G Real Estate, valued at €98 million and comprising 314 residences.

• Madrid Transactions:

  • €65 million deal: Mapfre elberdrola sold to Acciona (number of houses not specified).
  • €47 million deal: Via Agoral sold to Aviva, involving 234 houses.

Supporting Data Sources

• CPI: INE
• Net Financial Wealth: Banco de España
• Gross Disposable Income: Banco de España
• Rental Burden Rate: Idealista
• Investment Volume: Knight Frank Research
• Average Rental Price: Idealista

Conclusion

Despite a slight decline in investment volume compared to 2022, the Spanish real estate market continues to show resilience, with rental prices rising significantly and household financial health improving. Madrid remains the primary hub for investment, while Málaga and the Balearic Islands face higher rental burdens. The market is expected to stabilize in the coming year, with returns and prices remaining relatively strong.