A newly built apartment block Shutterstock
Unlike the financial crisis of 2008, the real estate sector seems to have remained immune to the lethal consequences of the coronavirus for many economic sectors.
Quarter after quarter have been observed generalized increases in the prices of the housing stock Spanish. This is demonstrated by the latest barometer that iAhorro has made on the evolution of the value of housing in Spain since the outbreak of the pandemic. After analyzing the prices of up to 1,456 properties from different real estate portals, the result is that in the second quarter of 2021, prices rose by 1.7% on average compared to the first three months of the year. In the case of homes up to five years old (new construction), the increase is up to 2.1%, while in homes over five years old it represents an increase of 1.4%.
“Despite the difficulties in the real estate market, there has not been a crisis as many expected. The sector has remained and has resisted strongly to the point of finding ourselves in some cities with the highest price rebound in 15 months since the start of the pandemic, “says Antonio Gallardo, financial expert at iAhorro.
Housing in Malaga or Valencia registers its highest price since the start of the pandemic
If we take the period between the first quarter of 2020 and June 2021 as a reference, the rise in real estate land is up to 2.3% in general terms. For its part, the price of new construction homes increased 4.1% and 2% in the case of more than five years.
This can be seen in cities, such as Malaga, where housing registered its highest value in the last 15 months in the second quarter of this year with a price per m2 of 1,809.3 euros. Similarly, Valencia, with a cost per m2 of 1,514.7 euros, also experiences its highest value.
The rise in prices has been more noticeable in new construction, with increases in Alicante (+ 26%), Vigo (+ 12%) and Zaragoza (+ 10%) compared to the first quarter of 2020. In the same way, this type of property grab the biggest discounts. For example, it can be observed that in San Sebastián or Bilbao it falls by around 3%. However, Madrid (-1%) or Barcelona have remained stable since the first quarter of 2020.
“That the price rises a lot in Madrid is more complicated than in other cities because there is always a lot of movement and flow of people. With telecommuting and the pandemic, the drop was expected to be greater because many Airbnb flats went on the market because many people were drowned by the situation. As there is greater supply than demand, prices fell ”, points out Antonio Gallardo.
The increases reach the mortgages with the best financing data in the last year
Despite the brief hiatus in the granting of mortgages during the months of confinement, the mortgage sector took little time to reactivate and return to normal activity rates. In fact, according to the National Institute of Statistics (INE), in April of this year the best average financing figure obtained (139,464 euros) was achieved since February 2020 (175,114 euros), just before the pandemic broke out.
In March 2021, it was already noted with the best number of mortgage grants (36,886) since January of last year. The stabilization, moreover, seems to come from the hand of the fixed rate, which in April 2021 has once again broken a record to account for 58.5% of all mortgages signed in a month, according to the INE.