The Spanish property market is booming in 2021. New build property sales are up and every single agent in Spain is seeing numbers of enquiries shooting through the roof.
The first half of 2020 was dominated by the shocking impact of the coronavirus pandemic but the same months in 2021 produce positive news, not least for the Spanish property market. Clients are comfortable flying to Spain now to view property, rather than relying on virtual viewings.
The Association of Spanish Notaries has put some good news in the press.
All the data including reports from agents, property portals and the national statistics association in Spain tells us of a sustained recovery in Spanish property. The increase in sales, prices, long term rentals and mortgage lending, even compared to the two years previous to the pandemic is exceptional. Some of the recovery this year can be attributed to a hangover of pent-up demand from 2020. We anticipated this. The good news is that the recovery is looking stronger than anyone could have imagined, even people as positive as us. The restaurants are still full even this late in the year (November), the beaches are busy, the tennis and Padel courts are fully booked. It is busty here.
According to data from the Association of Spanish Notaries, there were half a million home sales in 2020. That represents a decline of less than 15% compared to 2019, even that is not too bad. Way back in the Spanish property bust of 2006- 2008, sales dropped by a third. The coronavirus has clearly done less damage to the Spanish property market than the credit crunch. Back then when the bust happened, everyone was feeling negative. Now there is nothing but positivity in the air in Spain.
The pandemic was undoubtedly a bad shock for the market, but recovery was quick and positive.
The monthly figures comparing 2020 and 2021 are fascinating. This year, transactions increased dramatically in April and May when compared to the lockdown months of 2020. It is very evident in the number of conveyancing deals we’re doing for our clients. There was an annualised increase of 234% (April) and 125% (May). Spanish property sales were also up 8% compared to 2019. Let’s continue looking at figures; Property Sales were also up 6% compared to 2018.
The market is really going in the right direction. How hot will it get? According to figures from the Association of Spanish Land Registrars, foreign buyers represented 50,000 completed deals in 2020. That is despite the Covid and various lockdowns. Travel restrictions made it much harder for foreigners to visit Spain last year, this really wrecked the market. Many Britons really wanted to start the ball rolling on beating Brexit by moving to Spain and applying for a visa here. The covid-19 disruption meant that foreign demand fell by 25% last year, although we were still getting enquiries. Requests were more like “we’re going to buy a property in Spain, once the Covid situation is sorted out.” Well, those buyers kept true to their word. Incredibly in 2021 foreign demand is already back to 83% of its pre-covid number.
The main foreign buyers of property in Spain are;
Mortgage lending and access to cash are vital drivers of the property market in Spain. Expats often sell their property back home and buy in cash in Spain. If money is cheap here, why not take advantage? People can later decide in a year or two to sell up back home while taking advantage of rising prices in Spain.
New residential mortgage lending in March 2021 in Spain was the highest it has been in ten years. There were in fact 32,000 new loans. Lending was 2% higher post-Covid than the pre-pandemic year of 2019.
The most accurate house price data available in Spain is published by the Association of Spanish Notaries. This is based on actual property sales here, not just clicks on a website or emails received.
Sometimes it is hard to fully believe estate agents in Spain!! We do believe that there has been a drop in prices of 5% to 6% before starting to recover. I think prices would have dropped more in 2020, but most of us just were not selling enough units to really have any impact on prices.
The very latest figures available show asking prices up by a staggering 10% in June 2021. This is the highest Spanish property increase ever and shows no sign of dropping back. People are buying in Spain and the prices reflect the demand.
New build property in Spain.
Covid reduced the number of new housing starts by 21% in 2020. Our buyers are getting better deals on New Build property than on resale so they are spending that little bit more to get what they want. We dont yet have definite numbers of new houses sold in Spain, but we think the numbers will be high. Demand is outstripping supply in the sector although we still have some developers offering wonderful deals to our clients.
We’ve also got a number of clients who bought new build property form us just two or three years ago and they are ready to upgrade already. These properties are as good as new, with many extras included.
Our advice of course is that if you are thinking of buying a property in Spain, there probably has never been a better time.
We are here to help with every aspect of your Spanish property deals. Our team will send you some sample deals, break down your costs, explain the tax situation, discuss Spanish residencia and whatever else you need. Our aim is to take care of your property management, legalities, currency issues and concerns.
With half a lifetime of experience selling property in Spain; we assure you:
“Comaskey properties, our name is (once again) your guarantee”.
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