What can we expect from the property market in 2024?

To kick off the year, I'll give you an overview of what to expect from the property market in 2024?

In 2024, taking into account the economic and political environment and despite the prospect of inflation stabilising over the first few months of the year, the foreseeable fall in interest rates from the second half of the year, the continuing shortage of supply and a slight cooling of demand, the market's "downturn" trend should be in line with 2023 and we will continue to see a slowdown in the volume of transactions in the sector.

However, with a scenario of a continued drop in the number of property transactions in 2024, we shouldn't expect to see any major falls in property prices. The imbalance between supply and demand continues to be felt, so the m2 value of houses continues to stabilise or correct. The price correction will be more noticeable in urban areas.

This trend contrasts with the resilience of the prime residential segment. This segment is expected to see a moderate increase of 2% in 2024, reflecting a scenario characterised by a shortage of supply and the liquidity of buyers, who are less dependent on creditHowever, there will generally be a slowdown in the rate at which property is sold.

I believe that we will see an increase in the average time it takes to sell a property, especially in the first half of the year.More precisely, I am convinced that we could see two market moments in 2024:  in the first half of the year and considering the political and economic events that lie ahead, we will have a slower pace, while in the second half of the year, with increased confidence and recovery, we will see a more dynamic pace in the market.

Overall, the experience of the housing market in 2024 will continue to require specialised and up-to-date , as well as a full understanding of the impact that legislative changes will have on the sector (such as the Simplex housing programme), now and in the future real estate deals that our clients intend to carry out. 2024 will be a more promising year for the real estate market with slightly more attractive borrowing costs, which may help to increase the number of transactions.