PROPERTY SEARCH
Murcia homes are 30 per cent cheaper than 15 years ago
Experts predict real estate prices in Spain will increase by 5% this year
We’re definitely living in age where everything seems to get more expensive by the month, so it’s nice to see that some things are a little cheaper in 2024 than in days gone by. Surprisingly enough, that’s the case with housing, which is 30% cheaper today in the Region of Murcia than it was 15 years ago.According to the latest study by the BBVA Research Real Estate Observatory, most areas of Spain are far from the peaks reached in 2008, the year in which the real estate bubble burst.
“Murcia is one of the regions that suffered the most, as housing prices fell by 40% between 2008 and 2014,” explains Félix Lores, the economist responsible for the report. He added that the Region was “particularly punished” by the excess of housing that was left unsold, particularly in high-end resorts.
The bad news is that experts expect house prices to continue to grow this year and next, by around 5% on average across the country in 2024 and 3% in 2025. The percentage will be similar in the Region of Murcia.
But even with this growth, more people are buying property, and during the first five months of the year, residential transactions increased by 6.1%.
According to the BBVA Research study, the progressive decline in interest rates, the strength of the labour market and the gradual recovery of the surrounding economies are favouring the growth of sales.
Mr Lores believes that the Region of Murcia has two major plus points in this regard: on the one hand, a younger population than in the rest of the country, which will be more inclined to buy homes due to the drop in interest rates; and on the other, the significant percentage of foreigners that choose to make Murcia their home.
And Murcia is still a lot cheaper than many neighbouring municipalities like Alicante, which makes it an attractive option for foreign investors. In fact, during the first quarter of the year, almost 30% of all real estate transactions were carried out by foreigners.
Image: Freepik
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