In this article, we want to share with you the valuable information provided by Ana Palacios, Coaching & Training Manager at idealista. Below, we highlight the following points from her presentation:
Sociodemographic Environment
According to projections, there is expected to be a 13% increase in the number of households in the long term. It is important to note that these new residences will be smaller in size compared to traditional homes, reflecting the trend towards smaller families.
Socioeconomic Environment
The Bank of Spain has warned that the affordability ratio, that is, the percentage of income allocated to cover expenses, should not exceed 30% - 35% for rental payments. However, in Malaga, we observe that this ratio exceeds 50%, highlighting the need to carefully consider the financial implications when choosing a rental property.
What Happened in January?
January brought a 7.3% increase in transactions after 15 months of decline. Additionally, we witnessed a 7.6% increase in mortgage signings after 17 months of reductions. Prices also experienced a 4% increase.
Forecasts for 2024
For this year, a decrease in mortgage interest rates is expected, which could lead to a shift in demand from renting to buying. However, there is anticipated increased demand among young people due to the guarantees offered by the Official Credit Institute (ICO). These aids will lead to a slight increase in rental demand, although we may see price regulation in the rental market, resulting in a more limited supply. Finally, an increase in foreign demand is expected, which will persist throughout the year.
We hope this summary of market updates and forecasts proves useful and informative to you. At KW Spain, we continue to train our associates so they can always stay ahead and provide top-notch service to their clients.