Spain Property Prices Move Upwards
Spain’s property prices have been steadily increasing year on year since the European credit crash in 2008 and the market is recovering strongly since the pandemic. According to the National Institute of Statistics (INE), in January 2022, a staggering 52,684 property transactions took place in Spain, which is the highest figure for the first month of the year since 2008. February 2022’s figures were slightly higher at 53,623 transactions, which is an annual increase of 24%.
20.4% of February’s property transactions were new homes and 79.6% were used. The number of new homes being purchased increased by 9.2% compared to February 2021 and used homes increased by 28.4%.
A recent news report by one of Spain’s national newspapers- El Mundo, highlighted how the demand for Spanish homes continues to outweigh the supply, with a huge decline in available properties. The stock of available housing for sale has fallen by 17% in the last year alone. The decline of available homes is no doubt a knock-on effect from the pandemic, a pattern which is being seen in several countries across Europe. 2020’s lockdown temporarily brought the property market to a standstill and construction of new properties was paused. When the country started to open back up, there was then a surge of backlogged buyers and a lack of available projects.
According to Idealista, in the year of the pandemic, sales among foreign residents fell by 22.1%, but in 2021 these figures rose by 51.2%. It’s clear to see that the Spanish property market is on an upward trend and experts estimate that we will see approximately 750,000 property transactions take place this year with an average price growth prediction of 10%.
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