Real estate will rise in the second half of2024

The current downturn in the real estate market, which has reduced demand for mortgages, will result in a 5% decline in home prices and a 15% decrease in transaction volume in 2023.

However, in the second half of 2024, the market is expected to rise thanks to the reduction in interest rates from May 2024. This was stated by Professor of Economics at the University of Barcelona Gonzalo Bernardos, speaking at the conference "Buying and renting market: state and prospects", organized by the General Council of the College of Official Agents and Real Estate Agencies of Spain in the city of Avila as part of the celebration of St. Teresa Jesus.

The event, which was attended by the College of Officials and the Association of Agents and Real Estate Agencies of Madrid (COAPIMADRID - AIM), brought together real estate agents from all over Spain.

Bernardos said that the current "recession in the real estate market" is due to the fact that "people can afford less, although tourism GDP has increased and the economy has not fallen, because real estate sales are not dependent on the state of employment, but related to the development of credit, and demand has decreased due to higher interest rates and reduced availability of credit from banks."

However, as Bernardos noted, the development of the global economy in the context of lower demand and, consequently, prices for raw materials, may lead to lower inflation. "From May 2024 there will be a first reduction in rates to 4.25%, and by the end of the year they will be set at 3.5%, so in the second half of 2024 is expected to rise in the real estate market," the expert predicts.

As part of the celebration of St.

Teresa Jesus, patron saint of real estate agents, awards and medals were presented to representatives of the Colleges of Official Real Estate Agents and registered professionals for their dedication to the real estate profession. Real estate agents who are members of professional associations mediate between the parties to a transaction, carry public liability insurance coverage and are subject to the discipline of the Code of Ethics and Professional Conduct. They also perform an important collaborative function with the justice system, acting as official experts in the courts. This is possible thanks to the specialized education provided by the College and the use of TAS//API, the online application of the College of Official Agents and Real Estate Agencies of Madrid (COAPIMADRID - AIM) for telecommunication real estate due diligence.