Real Estate Market Outlook for 2024-2025

The real estate market has always been a key component of the economy, and in recent years, it has undergone significant changes.

If you're considering investing or selling a property, Palma Real Properties offers this article to keep you informed about the trends and forecasts for the real estate market in 2024 and 2025.

Key Real Estate Market Trends for 2024-2025

The real estate sector has been experiencing a series of major transformations, driven by technological and demographic factors.

Here are some of the trends that will shape the market:

Expansion of Digitalization

The real estate market is moving rapidly toward digitalization, reshaping how buyers, sellers, and industry professionals interact.

• Technological Tools: Digital solutions are redefining the real estate landscape. Platforms like Palma Real Properties make it easy to manage every aspect of a real estate investment digitally, from initial evaluation to closing the deal. These technologies streamline processes, enhancing transparency and efficiency in transactions.

Demographic Shifts

Changes in demographic trends are creating new demands and expectations for both property supply and demand.

• Aging Population: The growing elderly population is influencing the market in various ways. More and more, this demographic seeks properties that are comfortable, accessible, and provide additional services such as security, maintenance, and other amenities.

• Preferences of Millennials and Gen Z: Millennials and Generation Z are redefining traditional home selection criteria. These generations prioritize sustainability and the integration of smart technologies in their homes. They often opt for energy-efficient properties equipped with smart home technology to maximize efficiency and comfort.

New Property Investment Models

• Naked Ownership: At Palma Real Properties, we offer options such as the sale of naked ownership, allowing owners to sell the right to the property while retaining the use of it.

• Sale with Guaranteed Rent: We also offer solutions for sale with guaranteed rent, ideal for those who wish to secure a permanent residence after selling their property.

Economic Forecasts and Their Impact on the Real Estate Sector

According to BBVA Research, recent and current economic conditions are directly influencing real estate market projections for the coming years. Here are some key points:

Main Trends of 2023

• Real estate transactions fell by 11.3% compared to 2022, but the total number (640,000) remains higher than the annual average from 2002 to 2022.
  
  
• Prices increased by 3.4% over the previous year, although in real terms, the rise did not exceed the 2023 inflation rate of 3.6%.
  
  
• The supply of properties has decreased, affected by factors such as rising interest rates, increased material costs, and a shortage of developable land.

Projections for 2024

• A slight decline in transaction volumes is expected at the beginning of 2024.
  
  
• Prices will continue to rise, although at a slower pace than in 2023, around 2.5%.

Outlook for 2025

• The contraction is expected to end in 2025, with moderate growth projected between 2% and 3%, driven by the potential lowering of interest rates and economic recovery in Europe.
  
  
• The sector will need to address challenges related to supply, as Spain's population is estimated to have grown by 1 million people in the past year.

The Impact of Blockchain on the Real Estate Sector

Blockchain technology is transforming aspects of the real estate market and the post-pandemic economy, making transactions safer and more transparent.

Some prominent applications include:

• Smart Contracts: These contracts automate and simplify transactions, eliminating intermediaries and reducing costs and time. They also bring transparency and security to operations.
  
  
• Tokenization of Real Estate Assets: This allows properties to be divided into digital tokens that can be bought and sold easily, increasing liquidity in the market.

Regulatory Changes and Their Influence

Government regulations play a crucial role in the sector, particularly through standards related to energy efficiency and sustainability, as part of the global 2030 agenda.

New Energy Efficiency Standards

The European Union published new standards in 2023 that set a goal of reducing final energy consumption by 11.3% by 2030. New developments must meet high energy efficiency standards, which involve better insulation, more efficient climate control systems, and the use of renewable technologies to reduce environmental and economic impact.

Sustainable Construction

Regulations promote the use of eco-friendly materials and construction practices that minimize environmental impact. Sustainable buildings offer benefits such as lower resource consumption and improved quality of life, thanks to features like proper orientation, efficient insulation, and systems that ensure clean indoor air.

Options for Those Over 65

Palma Real Properties offers a life annuity solution tailored for those over 65 who want to improve their quality of life through stable income. If you own a second home and are over 65, there are multiple ways to use it to supplement your pension.

This model allows the owner to receive a steady monthly income, providing financial stability during retirement.

Real Estate Market 2024-2025: Challenges and Opportunities

In summary, the real estate market for 2024-2025 presents various investment opportunities for those who are attentive to emerging trends.

At Palma Real Properties, we aim to help you find the perfect investment for your needs, offering products and solutions that not only fit current conditions but also anticipate future trends.