The real estate market in Spain is a sector has had large ups and downs in recent years. Not only in Spain, also throughout Europe.

That is why it is important to know the prediction of experts on the subject to guide you in the management of your homes.

In this post we will inform the homeowners of the current situation of the real estate sector. In addition this information is also useful for students when looking for housing in Spain, either to buy or rent apartments.

Current situation of the Real Estate Market

The real estate Market in Spain is a sector that in the last 4 years has not stopped rising. But since last year that growth has begun to fall, to the point that this 2020 it is expected that the prices of both purchase and rental of accommodation will be stagnant in the figure of 2019.

This stagnation does not mean that it cannot rise or fall, but in the case that it does, it will be very feeble.

Housing Price

First of all, the situation of supply and demand in the sector must be taken into account. The real estate sector in Spain is expected to rise between 1% and 3%. As long as there are no political situations that directly affect the sector.

The real estate sector in Spain is in a moment of growth stagnating. Gradually the prices go up less. Even in Barcelona the price of homes has begun to fall. This may be a symptom of what lies ahead in the coming years in Spain.

To do this we must understand that the sector must be divided by cities. It will not be the same demand in Madrid as in Valencia. Therefore the price according to the city varies.

In the case of Madrid, according to the experts consulted, the price of housing will rise between 1% and 3%. It is a market still growing, although reaching maturity. It is true that it is a city with a lot of supply, but the demand levels are very high.

In the case of Barcelona, ​​prices will fall. Possibly it will be the city where housing prices fall the most. The drop will be around 3%.

There are other cities to highlight such as Valencia, which is estimated to increase the value of housing between 5% and 7%. Something that denotes that the sector in Valencia is increasing its demand. Possibly this demand is mainly from real estate investors or people who are forced to migrate to another city in search of more affordable housing.

Rental Price

The price of rentals in Spain has been rising proportionally in recent years. After 4 years followers in which the average rent in Spain has been increasing month by month. In December 2019, there has been the first decline since 2015. The rental of housing has decreased 0.7%. Although the year has ended with records of 2% increase.

Even when there is a drop in rents in recent years, experts’ predictions place the market in a stagnation phase. Rentals will rise or fall very little. It will depend on the city and the demand it has, but the Spanish average will range between a 1% drop and a 1% rise. That is, a total stagnation of the rental price.

This drop in prices at the end of the year may be the beginning of a new trend in real estate in Spain. It is a fact to be taken into account by both the owners and the students. We will have to see how January 2020 ends and draw an estimate of how the year will end.

The price of rentals is not only the main differences between floors, but there are other things that influence a student’s decision to decide on a flat or not.

The latest trends in the real estate sector

Coliving

It is a trend brought from the United States. It is about creating residential spaces shared by several people. These people are usually people with similar professions or interests.

Until 2018 this trend was having a feeble implementation, but as of 2019 many investors have put to work with this type of residences. To the point that this type of housing has been established in Spain. The reasons are possibly due to the rise in rental prices. It is also something beneficial for both students and owners.

It is a trend that benefits students since the price per room is slightly lower compared to other types of housing. On our Website you can see several accommodations for students of this trend.

It is also beneficial for the owners because having many rooms (between 8 and 10 rooms on average), allows to obtain higher returns.

One of the areas that can serve as an example of this type of residence, is the Chamberí area in Madrid.

Build to rent

One of the latest trends that are bringing large investors in the real estate sector.

It is about building houses and then renting them. Since there is so much demand for rentals in the main Spanish cities, it is very profitable in the long term to build homes made solely for rent.

According to the latest data, this type of practice has been increased by 10% in 2019. Mainly in cities such as Madrid or Seville.

Large companies within the sector have already begun this journey, and it is expected that in 2020 the number of real estate investors in Spain will continue to increase.

To sum up, the real estate market in Spain is in a period of stagnation. Currently, it is still very profitable to rent your home to students. The sector looks like prices will stabilize for a while. Although the owners must keep in mind that prices are important for students, but it is not what else. If you want that your student flat has a high demand and is never empty, there are a number of things that students usually choose a flat for having them.

In our blog you will find more information that may interest you.