Spain | Real Estate Outlook. May 2023

Housing demand will be restricted by the increase in interest rates and new housing production will remain at similar levels to 2019. Unlike in other countries, there are no price imbalances and the moderation in growth will come mainly from used housing.

Key points

• Key points:
• The economy is holding up better than expected. Recession is avoided in 2023 and growth accelerates. At the same time, a weaker recovery is expected in 2024.
• Demand will be constrained in 2023 by rising rates and affordability will continue to increase in 2023.
• Supply remains at similar levels to 2019 and the absence of response to the increase in demand is expected to continue next year.
• In the current biennium, housing sales could be around 500,000 units per year. Supply constraints will keep approvals at around 100,000 units per year.
• Unlike in other countries, there are no perceived price imbalances and no significant falls in nominal terms are expected, partly due to the shortage of supply.

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