In the second quarter of 2024, the Spanish real estate market showed an adjustment in the number of transactions and new mortgage contracts, as well as a slight increase in purchase and sale prices and a significant increase in rental costs. These are some of the observations of the II Solvia market view 2024analysis of the residential market carried out quarterly by the real estate services company, where the company forecasts an adjustment of operations in Spain of between 4% and 5% year-on-year for 2024.
By 2025, Solvia estimates that demand will accelerate and estimates that the year will end with increases of between 2 and 3%. According to this analysis, During the second quarter, 3,023 real estate transactions were recorded in the province of Toledowhich represents an increase of 8.7% compared to the previous three months and 4.5% compared to the same period of 2023.
At the national level, 146,273 sales and purchases were recorded, with an adjustment of 3.4% quarterly and 3.8% over one year. However, given the cut in interest rates announced by the European Central Bank in June and the expectation that prices will maintain an upward trend that will make purchases difficult thereafter, operations could experience a new momentum which would attenuate their decline compared to 2023.
In the region, new home sales totaled 584 units, or 19.3% of the total, an increase of 11% compared to the previous quarter. On the other hand, 2,439 second-hand goods transactions were carried out, representing 80.7% of the total, a quarterly increase of 8.1%. Nationally, 29,175 new construction transactions were completed, which equates to 19.9% of the total, a quarterly decrease of 6.6% and a year-on-year increase of 1.5%, and 117,098 properties of used, or 80%. 1% of the total, and with a quarterly decline of 2.6% and 5% year-on-year.
Despite the increase in the number of sales, mortgage underwriting recorded a decline quarterly. In the second quarter of 2024, they were formalized in Castile-La Mancha 3,848 mortgage loans on houseswhich represents an adjustment of 14.9% compared to the first three months of the year. Compared to the same period in 2023, where 3,486 mortgage loans were registered, there were an increase of 10.4%.
In Spain, 93,301 mortgage contracts were carried out, which is 14.3% less than in the first three months of the year and 0.3% less than the same quarter of the previous year. By the end of 2024, if interest rates continue to fall, this could create a more accessible lending environment that could attract new customers. However, supply remains very limited and is gradually decreasing, so the year is expected to end with a slight reduction in the volume of new mortgage contracts.
Buying a home continues to be a challenge for young people. This is largely due to its their limited savings capacity and the job insecurity they face. Indeed, according to the latest Emancipation Observatory of the Youth Council in Spain, a young person should devote on average 4.4 years of their full salary to access property. The proof is that by analyzing the monthly salary of the population aged 25 to 34 and comparing it to the cost of current mortgage repayments, we see that The monthly expense would consume 34.3% of the average salary of this age group in the Community of Madrid, thus in accordance with the recommendation of the Bank of Spain that this effort does not exceed 30-35%. In Spain, the indicator stands at 48.4%.
According to this study, between the months of April and June 2024, The rental price in the province of Toledo is €7.5/m2 per month. Thus, this value represents an increase of 1.4% compared to the previous quarter and an even more notable increase, of 8.7%, compared to the same period of 2023. At the national level, the indicator reaches 13.1 €/m2 monthly, which reflects a growth of 4.8% compared to the period between January and March and an increase of 10.1% compared to the second quarter of the previous year.
