Spanish real estate market and the outlook for 2023

The Spanish real estate market has been performing well over the past year, with price increases between 3 and 6 per cent. However, the outlook for 2023 is expected to be more stable, with potential price decreases. Experts have differing views on the market, with price changes predicted to be between minus three per cent and plus four per cent due to the uncertainty of the economy's evolution. Despite this, many experts still see the Spanish market as one of the best-performing in Europe for 2023.

Inflation is expected to be the main topic affecting the real estate market in Spain. After many years of loose monetary policy and following the war in Ukraine, inflation has returned and is likely to persist for some time. This was a potential risk identified in last year's Spanish real estate outlook for 2022, and while not unexpected, the magnitude of the inflationary pressures has been surprising.

While the market is not expected to rise as much as it did in 2022, it is expected to offer more opportunities. Real estate prices in Spain are predicted to remain conservative at current levels, with no excesses like those seen in 2008.

Furthermore, Spain's economy is expected to become stronger than other European countries over the next five years, which should help keep the Spanish real estate market healthy and in demand compared to other European markets. Spain is also an attractive location for Spaniards, foreigners, and remote workers, offering a high quality of life with 320 days of sun and a low cost of living. Overall, the Spanish real estate market is expected to remain stable in 2023 with potential opportunities for buyers, investors, and those looking to relocate or work remotely.