New Housing Development in Cantabria Sees Significant Decline in 2024

In a notable shift in the Spanish real estate market, the region of Cantabria has experienced a marked decline in new housing developments in 2024. This trend is particularly significant for expats and locals alike who are keen on understanding the dynamics of the Spanish property market.

Decline in New Housing Projects

According to recent data, the number of new housing projects in Cantabria has dropped substantially in 2024. This decline is a departure from the upward trend observed in many other regions of Spain, where housing prices and development activities have been on the rise.

National Context

While Cantabria is experiencing a downturn, the broader Spanish property market has been witnessing a surge. The price of second-hand housing in Spain closed 2024 with an annual increase of 8.4%, reaching €2,389 per square meter in December 2024. This increase is the highest recorded in 19 years, driven by high demand and limited supply, particularly in regions like the Balearic Islands, the Canary Islands, and Madrid[1].

Regional Variations

The Balearic Islands and Madrid have been at the forefront of this housing price surge, with the Balearic Islands exceeding €4,000 per square meter and Madrid surpassing €4,000 per square meter as well. However, regions like Cantabria are not following this trend, highlighting the diverse and complex nature of the Spanish real estate market[1].

Mortgage Rates and Market Impact

The decline in new housing projects in Cantabria could also be influenced by mortgage rates and overall market conditions. As of December 2024, average fixed-rate mortgages in Spain stood at around 3.3%, with some competitive rates available for both residents and non-residents. For instance, fixed rates could be as low as 2.85% for non-resident buyers, and even lower for residents who opt for additional banking products[2].

Implications for Expats

For expats considering purchasing property in Spain, the situation in Cantabria presents a unique opportunity. While the national market is heating up, regions like Cantabria may offer more affordable options and potentially less competition. However, it is crucial to consider the broader economic and regulatory environment, including mortgage rates and the overall demand-supply balance.

Future Outlook

As the Spanish property market continues to evolve, it is essential for potential buyers to stay informed about regional variations and market trends. The fall in interest rates and controlled inflation have made mortgages more accessible, but the sustainability of the market depends on measures that balance supply and demand. For Cantabria, the decline in new housing projects may signal a need for policy adjustments or new investment initiatives to revitalize the local real estate sector.

In conclusion, while the Spanish property market is generally on an upward trajectory, the decline in new housing developments in Cantabria serves as a reminder of the regional nuances and complexities that exist within this market. Expats and investors should carefully consider these factors when making decisions about property purchases in Spain.