Property sector sees 32.2% decrease in notarised deeds

Figures reveal a stark reduction of one-third (-32.3%) in such deeds in 2023 compared to 2022, with just over 11,000 notarised deeds recorded last year. The figure has nearly halved compared to 2021 (-41.4%). In 2023, there were 11,249 notarial deeds involving property transfers, a significant decrease from 16,607 in 2022 and 19,201 in 2021.

The term "Notarial deeds involving property transfers" denominates various transactions including sales, sales of properties under construction (VEFA), donations, exchanges, and property divisions, encompassing all property types such as houses, flats, and land plots.

The figures from the Registration Duties, Estates and VAT Authority clearly confirm that since the European Central Bank began to raise the main key interest rate in mid-2022, transactions on the property market have fallen sharply. The number of transactions has plummeted, especially during the final months of 2023, with December 2023 recording the lowest number of transfers in three years at 780. The most significant decline in percentage terms occurred in May 2023, witnessing an almost 43% decrease compared to the same period in 2022.

The latest available data from the National Institute of Statistics and Economic Studies (STATEC) and the National Housing Observatory dates back to the third quarter of 2023 and already highlighted this downward trend in transactions. However, these figures only focussed on flat sales and VEFA transactions.

In response to the dwindling activity, both the previous and current governments have implemented measures to bolster the sector. Last year, the previous government initiated measures to stimulate the market, while the new government recently announced the introduction of short-time working to various construction subsectors. Further initiatives, including tax incentives, are being prepared by the Ministries of Finance and Housing to revitalise the market.