Remax agent says Spain's property market has stalled
A Remax agent reports that offices aren't being let, rental supply has fallen and sales are slowing due to high prices and uncertainty. Here's what's behind it.
English · Original discussion in Spanish · Published
According to the testimony of a Remax agent, the Spanish property market has almost ground to a halt: offices are in surplus, rental homes are scarce, and sales are cooling due to high prices and political uncertainty.
## Offices: plenty of supply, few tenants
The office segment shows the clearest slowdown. According to the agent consulted, almost nothing is being let and there is an oversupply. This is a market that was already undergoing a shift in habits after the pandemic, with more remote working and companies trimming their square footage.
When supply outstrips demand, tenants gain bargaining power. This usually translates into lower rents or incentives to sign, although the effect takes time to show up in advertised prices.
## Residential rentals: fewer homes on the market
In the residential rental market, the agent says that properties they had listed have disappeared since the decrees of Sánchez's Government. Her reading is that nobody wants to put their home on the rental market.
This withdrawal of supply clashes with demand that is still there. Fewer homes available with the same buyer pressure is the classic recipe for prices not falling, even as transaction volumes shrink.
## Sales: high prices, uncertainty and more second-hand supply
In the sales market, the diagnosis is a market almost stalled by very high prices and political uncertainty. On top of that comes a striking development: second-hand home supply is growing because some landlords who had properties rented out have withdrawn them and put them up for sale, according to this agent, due to a lack of legal certainty.
The result is rising supply while demand contracts. With fewer buyers and more homes available, significant price drops are already visible on portals such as **Idealista** and **Fotocasa**, always according to this testimony.
## What to look at before deciding
A single testimony is not a statistic. Official data on prices and transactions arrive with a delay and should be checked before making any decision to buy, sell or rent. If you are considering a property transaction, consult a professional and review price trends in your specific area.
## Offices: plenty of supply, few tenants
The office segment shows the clearest slowdown. According to the agent consulted, almost nothing is being let and there is an oversupply. This is a market that was already undergoing a shift in habits after the pandemic, with more remote working and companies trimming their square footage.
When supply outstrips demand, tenants gain bargaining power. This usually translates into lower rents or incentives to sign, although the effect takes time to show up in advertised prices.
## Residential rentals: fewer homes on the market
In the residential rental market, the agent says that properties they had listed have disappeared since the decrees of Sánchez's Government. Her reading is that nobody wants to put their home on the rental market.
This withdrawal of supply clashes with demand that is still there. Fewer homes available with the same buyer pressure is the classic recipe for prices not falling, even as transaction volumes shrink.
## Sales: high prices, uncertainty and more second-hand supply
In the sales market, the diagnosis is a market almost stalled by very high prices and political uncertainty. On top of that comes a striking development: second-hand home supply is growing because some landlords who had properties rented out have withdrawn them and put them up for sale, according to this agent, due to a lack of legal certainty.
The result is rising supply while demand contracts. With fewer buyers and more homes available, significant price drops are already visible on portals such as **Idealista** and **Fotocasa**, always according to this testimony.
## What to look at before deciding
A single testimony is not a statistic. Official data on prices and transactions arrive with a delay and should be checked before making any decision to buy, sell or rent. If you are considering a property transaction, consult a professional and review price trends in your specific area.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (8 replies).
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