The report ‘Residential Market in Spain 2020’, Carried out by the real estate consultancy CBRE, foresees a moderation in house prices. Of course, it points out that these moderations will be asymmetric by location and differentiated between new home and of second hand. Specifically, the real estate services company points to a moderation in the prices of new housing of between 2% and 4% this year and around 6% or 7% in the case of the second-hand housing.
The national director of residential and land product of CBRE Spain, Samuel Population, has indicated that the economic uncertainty that has been installed since March 2020, due to the impact of the coronavirus health crisis, could generate a decrease in the total volume of transactions of around 20% or 25% compared to the previous year, including new and second-hand work, hovering around 450,000 or 425,000 units.
Population has explained that the coronavirus impact on prices It will depend on the location, the profile and the type of product and that it is foreseeable that the new residential work “will hardly undergo adjustments or these will be testimonial in 2020, since these are projects with a large percentage of pre-sales made”.
Population highlighted that “a path of stability is expected with an asymmetric repercussion, as the market was responding in this new cycle.”
In this sense, it sees a greater impact predictable in the second hand than in the new work.
As to first and second residence, believes that it will see less impact in markets such as Madrid and Barcelona, while those locations with the greatest weight of vacation home (Costa del Sol, Levante, Canarias, Baleares) will be more affected.
Regarding 2019, CBRE points out that the growth rate was 3.6%, three points less than in 2018, “indicating a less intense growth than that observed in previous years”.
Regarding the price by provinces, two markets were observed. On the one hand, the main provinces were located with prices already stressed as Balearics, Madrid, Biscay, Malaga and Barcelona, which registered growth of less than 8% and, on the other hand, provinces such as Lugo, Palencia, Teruel, Ourense, Lleida, Albacete and Castellón, which had average growths above 10%.