Breaking the Decline: Home Sales in Spain Reach 13-Month High with New Construction Housing Activity Surges

Home sales in Spain saw a 5.8% increase in February compared to the same month in 2023, with a total of 52,796 transactions, according to the National Institute of Statistics (INE). This marked the end of 13 months of year-on-year declines in home sales. The growth was primarily driven by the sale of new apartments, which saw a significant increase, while existing homes also saw an increase but at a slower pace.

Second-hand home sales rose by 2.2% year-on-year, totaling 41,268 operations, while new apartment transactions increased by 20.8%, reaching 11,528 operations. The majority of homes sold in February were free homes, with a small percentage being protected. The purchase and sale of free homes increased by 6.7% year-on-year, while subsidized homes saw a decline.

The Association of Construction Developers of Spain (APCE) highlighted the rise in new construction housing activity, reaching its highest level in the past ten years. This imbalance between supply and demand has led to a quick turnover of newly produced homes. The need for housing reform to address this issue was emphasized by APCE.

By autonomous community, Andalusia led in home sales in February, followed by the Valencian Community and Catalonia. Madrid also experienced an increase in home sales compared to the previous year but did not lead any regions overall. Thirteen regions saw an increase in home sales compared to the previous year, with Navarra showing the largest growth followed closely by Galicia and Murcia. Some regions experienced a decline in home sales due to economic factors such as unemployment rates and decreased consumer spending power.

Overall property transfers for February rose by 4% compared to the previous year thanks to both urban and rural property sales increasing significantly following government incentives aimed at stimulating these sectors